In October 2021, a new chapter began for Mark Zuckerberg, the CEO of Facebook. Instead of fueling debates about online privacy issues, the entrepreneur took center stage to announce the rebranding of the world's most widely used social network as "Metaverse." This decision captivated the attention of the public and sparked discussions about the future of digital interconnectedness and virtual experiences. With this bold move, Zuckerberg aims to redefine the boundaries of social media and create a new realm where people can explore, connect, and engage in immersive virtual environments. As the metamorphosis unfolds, the world eagerly anticipates the evolution of Facebook into the Metaverse.
To put it differently, it's about providing a hybrid online experience that has the potential to be projected into the physical world. The announcement video by Zuckerberg, unveiling the evolution of Facebook into an augmented virtual reality realm, took many by surprise, despite rumors circulating about it since 2019.
Although the buzz surrounding Facebook's shift towards a potential cyberpunk dystopia has captured a significant portion of public attention, many have quickly come to realize that the Metaverse is not a novel concept.
Numerous shared spaces fit within this definition. One instance is the presence of blockchain technology within the World Wide Web, which had already existed and been employed by various individuals.
Therefore, let's elucidate the essence of this novel realm of virtual reality casinos and platforms, as well as how the Gaming Metaverse will impact the future of the global online gambling industry moving forward.
What is the Metaverse?
The concept of the Metaverse is the fusion of the terms "meta" and "universe." It was first coined in 1992 within the pages of "Snow Crash," a science fiction novel penned by American author Neal Stephenson. This literary masterpiece unfolds in 21st century Los Angeles, during the aftermath of a global economic collapse that spanned decades.
The literary piece showcases Sumerian language, serving as the lifeblood of the human brain, while introducing a plethora of distinctive concepts intertwining ancient history and computerized technology. In today's context, the Metaverse refers to a 3D virtual realm centered on fostering social connections.
The widely recognized multimedia online platform, "Second Life," can be regarded as one of the pioneering virtual spaces that gained widespread popularity. It offers an economic framework and presents a tangible realm of opportunities for financial gain. At one point in time, Second Life boasted an impressive user base of over a million active individuals, which prompted the introduction of a virtual currency known as the Linden Dollar.
Nowadays, the majority of platforms referred to as the Metaverse are VR (Virtual Reality) platforms that make use of the Ethereum blockchain. This cryptocurrency employs the ERC-20 standard for its fungible and non-fungible tokens. These platforms enable users to interact and engage in trade with one another. As a result, the VR world of Facebook will integrate ideas presented and developed within the Metaverse by utilizing the Ethereum blockchain.
What are the most common metaverses?
Undoubtedly, the most popular metaverse today is Decentraland, conceived by the Argentine duo Ari Meilich and Esteban Ordano. Back in 2015, the pair initiated their endeavor, before finally unveiling their visionary creation in 2017 through an initial coin offering that raised a staggering $26 billion.
The Genesis district of Decentraland saw the occurrence of an offering through virtual land auctions, with each lot representing a virtual area of the same size as Washington D.C. Towards the end of 2021, the government of Barbados revealed its intentions to establish an embassy within this virtual space.
In addition to Decentraland's Genesis, there are other popular metaverses such as Axie Infinity, Somnium Space, and SandBox. By the way, Axie Infinity is an NFT game (Non-Fungible Token) developed by Sky Mavis, a Vietnamese game studio.
Axie Infinity revolves around players engaging in collecting, breeding, and battling against Pokémon-like creatures called Axies. Launched in 2018, the game now boasts over two million active users on a daily basis.
On the other hand, Somnium Space captured the world's attention a year earlier, boasting significantly more advanced graphics than its competitors, with its main focus being on the virtual reality element. As for The SandBox, it is essentially the most renowned blockchain version of a mobile game with the same name. Moreover, what sets it apart from the others is its unique feature of having lots of land plots all of equal size.
Established Metaverses Casino
Many virtual worlds mentioned earlier have self-sustaining economies, providing fungible tokens as currency and non-fungible tokens as lands or other digital assets. Numerous users engage in real business ventures utilizing Ethereum within these virtual realms.
Therefore, it comes as no surprise to witness the presence of metaverse casinos on these platforms. In fact, at the beginning of 2021, the gaming pioneer, Atari, revealed its plans to establish gaming establishments in Decentraland, specifically in the vibrant district of Vegas City, with operations commencing in April of that same year.
Furthermore, this is not the only casino in Decentraland. There is also the Tominoya Casino, which has a Japanese theme. The venue features two floors with three wings each. Meanwhile, The SandBox boasts the Sand Vegas Club, a metaverse casino that allows investors to purchase NFTs, thereby earning a share of the establishment's profits.
There is also Everdome, an ultra-realistic metaverse that doesn't prioritize game points, and the same goes for Highstreet. Bloktopia is a massive virtual building with 21 levels where users can engage in poker and various casino games. Experience a hyper-realistic metaverse like never before with Everdome, where game points take a backseat to immersive experiences. Highstreet also follows this trend, offering a metaverse that focuses on realistic interactions rather than gaming achievements. If you're looking for a unique virtual experience, venture into Bloktopia, a colossal virtual structure with 21 levels that offers poker and a wide array of casino games to satisfy all your gaming desires.
Gambling games available in the Metaverse
While many individuals find it fascinating to engage in live online casino games with a dealer, the occurrence of such an experience is not as challenging as it may appear. Metaverse casinos, like Tominoya, also employ real individuals to serve as dealers for your favorite casino games. Moreover, they hire hosts who take shifts within the premises, assisting gamblers with their various needs.
According to several accounts, these recruited individuals are compensated with a monthly sum of $500 for their services. Thus, there are no comparisons when it comes to the level of interaction between a metaverse casino and an online casino. However, that's not all, oh no! The games provided by metaverse casinos also differ considerably from what most online players are accustomed to.
Indeed, they also offer traditional casino games such as slot machines, blackjack, baccarat, and even free roulette. At the same time, they provide authentic metaverse casino products. For instance, in Decentraland's Atari, customers are permitted to wager on games inspired by Atari's legendary arcade machines.
Metaverse casinos offer a wide range of betting options, fostering a vibrant diversity of wagering possibilities. They never confine their clientele to predetermined offerings, but rather embrace the freedom to meet the ever-evolving demands of the market.
How betting transactions occur in the Metaverse
In recent times, the Metaverse has established a strong connection with crypto technology, primarily through the Ethereum blockchain. Utilizing Ethereum's ERC-20 token as the foundation of their economies, all the aforementioned platforms have embraced this trend. Over the past few decades, a deep bond has formed between the Metaverse and the world of crypto, with Ethereum's blockchain serving as the driving force. The fundamental pillar of their economic systems lies in the utilization of Ethereum's ERC-20 token, which serves as the cornerstone for these platforms. The Metaverse has witnessed a profound integration with cryptocurrency technology, particularly owing to the pervasive influence of the Ethereum blockchain. Underpinning the economies of these platforms is the Ethereum ERC-20 token, which has become the bedrock of their financial framework.
For instance, the native non-fungible token of Decentraland is MANA, while Axie Infinities has Shards (AXS). These serve as virtual world counterparts to fiat currencies. In the realm of Decentraland, at the Atari Casino, MANA tokens are readily accepted for placing bets. Moreover, the establishment also acknowledges Decentraland Games' native token - $DG, Atari's cryptographic tokens, and the stablecoin DAI, which is pegged to the US Dollar.
These tokens can be exchanged on popular cryptocurrency exchanges for conversion, and their value fluctuations are no different from established cryptocurrencies. This implies that the tokens have high volatility, and a mere piece of news or speculation can significantly impact their value.
Facebook has a track record of dabbling in blockchain and cryptocurrencies. The initial endeavor, known as Libra, was later renamed Diem due to the scrutiny from the US government. It is anticipated that the social media giant's metaverse will leverage crypto technology and potentially embrace Diem, subject to timely government approval.
Regulations for betting in metaverse casinos
Currently, there is no regulation for metaverse gambling. Virtual businesses, in fact, bring to mind the early days of online crypto casinos, which emerged two years after the birth of Bitcoin. They too operated without any governing body overseeing their activities, relying solely on their goodwill towards customers.
The landscape began to shift in 2014, with the emergence of online gambling regulators such as Antillephone, who started granting licenses to websites that hosted this activity and accepted digital currencies. Metaverse casinos, on the other hand, hold a different perspective from traditional Internet-based casinos that accept bitcoin.
In this digital realm, no one holds absolute control over actions. The metaverse casinos exist within a virtual reality overseen by decentralized autonomous organizations, forming a cohesive system governed by transparent rules devoid of central authority. Consequently, all landowners in the metaverse have a say in determining its organization, thus embodying a fully democratic governance of the metaverse.
In this way, if a metaverse casino starts exhibiting behavior that is detested by individuals, they have the power to cast their votes and alter the rules - potentially limiting the operator's practices or even completely banning them.
What does the future hold for metaverse betting?
In 2022, it remains challenging for metaverse gambling to gain the necessary attention to impact online casino outcomes. The statistical disparity between those intrigued by this new realm and those fond of conventional betting games is evident.
Consequently, as VR technology gains traction in households worldwide, an increasing number of gamers will be drawn towards metaverse casinos, given their immense immersion and diverse array of virtual establishments on offer.
Regulating the increasingly popular and ever-emerging metaverse games seems like a daunting task. However, the same cannot be said for Facebook, given its expansion into the metaverse realm and the multitude of users utilizing the platform as a social network. It is highly unlikely that governments worldwide would refrain from intervening in the operations of this boundless virtual reality. It's difficult to fathom that anyone will regulate the most popular metaverse games and those yet to come. Nonetheless, this cannot be said about Facebook, owing to its foray into the metaverse and the sheer number of people using the platform as a social network. Governments across the globe are unlikely to stay away from meddling in the workings of this limitless virtual reality.
However, online casinos also employ blockchain technology. In this manner, they are able to stay ahead for a while. The game is merely a metaverse-based entertainment: once people uncover the limitless possibilities of the metaverse, web operators will be apprehensive about what might transpire.
Until that moment arrives, the games of the metaverse remain a pastime for certain individuals, with only a very small percentage of the population accessing and engaging with this digital universe on a regular basis. While we await its widespread adoption, the metaverse gaming experience continues to captivate an exclusive group of enthusiasts.
References:
- Ratan, Rabindra, and Dar Meshi. “The Metaverse: Where Money Meets Crypto Dominance.” The Dialogue, January 14th, 2022. https://theconversation.com/the-metaverse-is-money-and-crypto-is-king-why-youll-be-on-a-blockchain-when-youre-virtual-world-hopping-171659
- Rapoza, Kenneth. "The Indispensable Importance of Investing in the Metaverse." Forbes, November 18, 2021. https://www.forbes.com/sites/kenrapoza/2021/11/14/why-you-absolutely-must-invest-in-the-metaverse
- Jeffries, Scott. "Diem Coin: Everything You Should be Aware Of." GOBankingRates, October 11, 2021. https://www.gobankingrates.com/investing/crypto/what-is-diem-coin/
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