What is MetaFi? The Economic Layer of Metaverse
Any discussion around metaverse is incomplete without mentioning web3.0. In addition, web 3.0, has blockchain as the important layer that enables peer-to-peer transactions of value and data amongst users. This confluence of metaverse & DeFi is termed MetaFi.
Metaverse development has seen a meteoric rise in very short spans of a few months. Beyond its origin in gaming and recreation, the virtual industry is extending its reach to traditional sectors like banking, retailing, manufacturing, workspace, social media, and even architecture and engineering.
This is where all the big opportunities have started to grow and tech giants like Apple, Google, Meta, Microsoft, Niantic, and Valve diving deeper into this space does not come as a surprise to me.
Expected to surge to USD 716.5 billion by 2027 with a CAGR of 22.7%, this industry is looking at touching the one trillion marks in the coming decade. With so much value to be unlocked, we as a blockchain company are challenging ourselves to keep pace with the technological expectations of this ever-evolving industry.
Modern-day metaverse ecosystems rely heavily on the ability to provide a financial system for the virtual world that operates beyond the geo-political boundaries. Hence, we see a lot of potential metaverse development with blockchain.
As a metaverse development company, we have no hesitation in accepting that this space is converging fast to create new business models; and that there does not seem to be an end to this which makes it much more exciting for technology-driven entrepreneurs like us to reinvent ourselves relentlessly.
It is a known fact that metaverse, be it a gaming platform, a marketplace, an event space, commercial, or a personal space, finance finds applications in all real estate use cases.
We recently published a detailed blog on metaverse real estate development that explains the scope, type, and extent of real estate assets inside a virtual world.
Building a financial infrastructure over blockchain for the virtual realm
In our metaverse development experience so far, a fully functional economy and DeFi development for Metaverses is inevitably picking up the pace.
Building and scaling a metaverse is not possible without a strong financial ecosystem capable of offering secure, seamless, and interoperable functionalities around financial transactions happening on these platforms.
Exactly why, crypto, blockchain, NFTs, DeFi, and DAO are being seen as building blocks for a reliable and integrated Metaverse-ecosystem.
This parallel economy needs a robust financial nervous system based on tokenization and governed by Decentralized Autonomous Organization (DAO) principles.
The key shifts in the gaming industry are presently riding high on decentralized technologies. The industry initially held on to AR and VR technologies and managed to roll the ball for next-gen gamers. However, few brilliant minds, the likes of Esteban Ordano, Ariel Meilich, Sebastien Borget, and David Baszucki, though there are many more, have thrown everyone out of the game as they were quick to transcend into crypto space.
The way metaverses are evolving at an unbelievable pace; not only in terms of market size but also in terms of new applications and engagement levels they can offer. They are opening an entirely new business paradigm fueled by a convergence of highly-combinative technologies.
It started with crypto, then blockchain, and later NFTs and when financial transactions on these platforms grew significantly to support the evolution of digital ownership, the industry started to look for a reliable financial decentralized ecosystem that could offer secure, seamless, and interoperable functionalities around financial transactions taking place on the platform. And DeFi has managed to win the trust of the market so far.
With blockchain at its core, DeFi undoubtedly is a forerunner to offer tokenized parallel economies which all the futuristic metaverses are aiming to build.
To interact with the metaverse environment or in simple words, to purchase digital assets, make payments, transfer money, and trade NFTs, a platform needs a financial infrastructure and DeFi offers that.
Built on the principles of permissionless and financial inclusion, the purpose of DeFied metaverses is to construct a reliable, truly decentralized, and completely trustless financial ecosystem. And it is on its way to unlocking value across metaverse space and this convergence has given rise to a new tool called ‘MetaFi’.
The Purpose of MetaFi
MetaFi is offering collaborative decentralized financial tools including protocols, services, and products specifically designed to build a Meta economy. MeFi promises an integrated functionality across both the interface layer and the financial to compute layer. In my opinion, it is going to make metaverses go beyond geographical boundaries without compromising their security and composability.
Metaverses are going through a huge financialization drive; every digital asset including publishing, gaming (skin creation), digital art, streaming, music, film, and more are getting monetized and the rise of a humongous digital creator economy is inevitable therefore, the bottom line is that the MetaFi will matter a great deal across the metaverse space.
While bringing the best of both metaverses and DeFi protocols, MetaFi is emerging as a catalyst for bringing these next-gen metaverses to life.
As a blockchain development company, we are building an important link in the chain helping other entrepreneurs in converging technologies, putting building blocks together and taking metaverse immersion to the next level.
MetaFi Development Company
Surrounded by all kinds of criticism, the crypto space is a highly resilient industry; It not only survived every claim calling it just a bubble but also managed to lend growth to other digitalized platforms. With metaverse, crypto finance has an opportunity to fill the gaps in web 3 models and provide a financial ecosystem that ensures socially relevant products and services.
Antier Solutions is assisting global enterprises in actualizing their metafi layers for a wide range of use cases. Get in touch with us to explore more.
