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Communication & Payment Infrastructure in the Metaverse & Web3

July 06, 2022

Read Time 4 MIN

Web3 and NFTs offer expansive potential and use cases. Learn more about Web3’s decentralization and the importance of NFTs.

In my role as Head of the VanEck NFT Community and Web3, I continue to find myself explaining the potential of Web3, the role NFTs play and potential use cases. Join me again as we take a trip down the rabbit hole to cover another project example that may help aid your conversations and understanding around Web3 and NFTs.

To Understand Web3, Start with Web 1.0

Let us first begin by exploring Web 1.0. Widespread adoption took place in the early 90’s; it was a read-only, static instance of the internet, which lacked the function or ability for users to interact with it. We lived with this version until about 2004. We had messaging and email. For the gamers out there, our main interaction was setting up LAN networks to play titles like Rainbow 6 and Counterstrike, and this version was a great resource for pulling data for school papers. It wasn’t terrible!

Gaming on Web 1.0

Gaming on Web 1.0

Source: Pixabay.

Web 2.0: Improvements on a Basic Structure

Web 2.0 is the centralized version of web browsing that we utilize today. In web 2.0, websites follow a client-server model in which the client (you) requests that a company’s server distribute information back to you. Now on the upside, these websites are easy to manage; the downside is that the servers control access to the application and all of the data, including your personal, often private, information. We’ve seen more issues regarding access over the last few years, whether it’s countries attempting to block certain websites and communication or attempting to block payments to specific groups that do not align with their interests.

Web 3.0 Introduces Versatility and Decentralization

Web3.0, or just Web3, gives us a choice between centralization and decentralization for both businesses and users. Applications in Web3, are called dApps (decentralized apps) and follow a peer-to-peer (P2P), distributed network model instead of the client-server model.

One major benefit of Web3 is that no one computer or server is responsible for the network. Web3 and P2P networks have the benefits of being extremely resistant to censorship and single points of failure, and even more importantly, no single entity can block you or deny you access to the service.

Play in the Metaverse

Play in the Metaverse

Source: Pixabay.

All Web3 Roads Lead to the Metaverse

Many of the projects involved in the “open” version of the metaverse are interoperable with one another. This means that assets within one ecosystem may work in another. Also, because many metaverse projects are democratizing in-game or in-world assets, they are built upon a blockchain layer, providing the ability for players and investors to own these valuable assets in a decentralized way.

From IRL (In Real Life) to Digital: Seekers Project

The Seekers NFT project is backed by Sylo, creators of the Sylo Network, the Sylo Token (SYLO) and the Sylo Smart Wallet, an application that’s available on Apple’s Ios and Android. This P2P or “wallet-to-Wallet” application provides a medium for users to conduct Payments and communications across a Decentralized network.

Sylo Smart Wallet

Sylo Smart Wallet

Source: SYLO.

You can consider the Sylo Smart Wallet as a combination of What’s App and Venmo merged into one intuitive, decentralized application, solving issues related to private payments and general data sharing.

Unlike our current smart phones, where a central server stores data, which is then sold to third parties for advertising, the Sylo network allows data transfer in a secured, encrypted manner.

The app supports a smart wallet that allows easy exchange to and from friends in the form of communication including video conference, voice and text. The best part is that no one has access to your data! The app also allows the purchase of crypto within the app. You can earn yield by staking specific tokens and you can spend crypto at various global vendors.

The Sylo Network is run by “Nodes” (computers that support a network). These nodes are owned and run by participants in the Sylo Network who support the overall infrastructure and are remunerated for doing so with the Sylo Token (SYLO). Seekers are the personification of Sylo Nodes in the metaverse. By owning a Seeker, individuals gain the right to run a node on the Sylo Network. As well as of course, explore the Metaverse as an adventure-ready robot!

Tying NFTs to Web3 Applications

Sylo has experienced significant momentum recently, partly tied to the recent distribution of “Seekers,” one of the largest NFT mints ever successfully conducted in the history of the space. The project minted, created and added to the blockchain over 47,000 high-quality, fully rendered avatars; ready for exploring a truly open Metaverse.

Seekers

Seekers

Source: OpenSea.

A massive benefit of this distribution method of Seekers is that the release introduced the NFT world to their decentralized P2P app. More importantly, they’ve designed the distribution so that going forward you would need to own a Seeker in order to run a node. This nuance provides a clear bridge between the digital world and our own. I use the Seeker project often as the perfect example for the potential that Web3 has to offer.

Based on what you’ve learned, would you prefer to keep conversations and data private or public? The choice is up to you!

Subscribe for more Digital Assets content to learn more about Web3 and what this exciting space has to offer.

IMPORTANT DISCLOSURES

The author of the blog owns Seeker NFTs and SYLO tokens, mentioned within the blog.

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The information herein represents the opinion of the author(s), but not necessarily those of VanEck, and these opinions may change at any time and from time to time. Non-VanEck proprietary information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Historical performance is not indicative of future results. Current data may differ from data quoted. Any graphs shown herein are for illustrative purposes only.

This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities/financial instruments mentioned herein. The information herein represents the opinion of the author(s), but not necessarily those of VanEck, and these opinions may change at any time. Non-VanEck proprietary information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Historical performance is not indicative of future results. Current data may differ from data quoted. Any graphs shown herein are for illustrative purposes only.

In consideration of the receipt of non-fungible tokens ("NFTs") from VanEck, you represent, acknowledge, accept and agree that you received the NFTs as a gift from VanEck. You did not pay any consideration, monetary or otherwise, for the NFTs.

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The NFTs are not an investment. Rather, the NFTs are digital memorabilia intended solely for entertainment purposes. As entertainment memorabilia given to you as a gift, the NFTs have no value and are not intended by VanEck to ever have any value. Neither VanEck nor anyone else will take or not take any current or future action that is designed in any way to maintain the value of the NFTs, or to cause their value to grow or increase. You must not attempt to obtain an NFT from VanEck if you view it as an investment.

As a condition of receiving the NFTs, you shall hold the NFTs for your own personal benefit, and you shall not act, and are not acting, on behalf of any other person or entity; except that, if you are an affiliate of an entity or person whose relationship or affiliation you have made VanEck aware of prior to your receiving the NFT, and VanEck consents to your receiving an NFT, you may receive an NFT. You shall not sell, assign, alienate, lease, lend, fractionalize, re-gift, convey or transfer in any way the NFTs (or any interest therein) to any other person or entity, even an affiliate. Any sale, transfer, assignment, or other action covered in the preceding sentence shall be void. You must not attempt to obtain an NFT from VanEck if you plan to sell or transfer it.

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