A smooth and “complete decentralization” of Web3 is not yet a reality, said Randi Zuckerberg, referring to a system in which users rather than companies have ownership of services and data.
The Web3 is a hypothetical, future version of the internet based on blockchain technology — an “ideal utopia,” said Zuckerberg.
“But … that’s not what’s happening. What’s happening in reality, is chaos.”
The founder and CEO of Zuckerberg Media, a production company and marketing consultancy, added, “You’re the only one watching your own back and your own assets, people are spending time protecting themselves by setting up so many different wallets and protecting their identity and that’s not contributing to development in the area.”
Zuckerberg, who was an early employee at Meta — formerly known as Facebook — explained that various metaverses are now acting as “their own walled garden,” in which users are unable to use their assets across platforms.
The metaverse can be loosely defined as a virtual world where people live, work and play. With cryptocurrency, users can buy and develop virtual land or dress their own avatars.
“In order to really unlock the potential [of Web3], we’re going to need to figure out a system where there’s interoperability. What you have goes with you wherever you are, [and] we’re not there yet,” Zuckerberg added.
However, according to Zuckerberg, that’s easier said than done because no company running a metaverse right now wants to give up control or “share that ownership.”
“That’s why it’s not we’re not seeing that kind of consumer mainstream adoption yet because there needs to be a world where you leave the house with one wallet. And you need to see that same behavior online also.”
She added that Web3 needs experts who have been involved in the global banking system and Web2 — the internet that we know today — to lend a “protective layer.”
The need for such experts is all the more important because it has been “too easy” for users to be scammed or lose all their assets in Web3, said Zuckerberg.
“There needs to be more protections for consumers … I think we will wind up [with] web 2.7, where there is some centralization, keeping people safe, but the ability to port your assets with you to any site.”
Another thing that needs to be improved in Web3 is user-friendliness, she added.
“It should not take 45 steps to set up a cryptocurrency wallet, buy a currency and enter the metaverse. It needs to [be] one-stop, beginner-friendly.”
Sectors with opportunities
The metaverse may still be in its infancy, but Zuckerberg pointed out that sectors like real estate will be “extremely valuable.”
“Wherever there’s scarcity … there’s value. I think the big question will just be, is there scarcity in the metaverse and if there is, there will be value in real estate there,” she added.
According to data from MetaMetrics Solutions, real estate sales in the metaverse surpassed $500 million in 2021 and could double in 2022.
Zuckerberg said that education and training will be another “huge area” for opportunities and revenue.
“Especially in this new age where workers are remote, it is very difficult to upskill remote workers … I think training in the metaverse, education in an interactive way, is going to become crucial for every business that has a remote work,” she added.
“We’re really just scratching the surface of what we’re going to see.”