The term ‘Metaverse’ describes a tool for digital collaboration and entertainment, such as virtual world gaming. It encompasses numerous particular horizontals and there are a number of areas that have gained significant traction recently. Of these, DeFi (Decentralized Finance), GameFi (Gaming Finance) and SocialFi (Social Finance) are just some of the horizontals that people are embracing as viable solutions for their financial needs. This article will explore why DeFi, GameFi, and SocialFi are horizontals in the Metaverse.
What is Metaverse?
A Metaverse is a three-dimensional (3D) digital world created by software applications and accessed by users through the internet. This virtual world may include various applications, such as virtual games, augmented reality (AR), or virtual/augmented reality (VR/AR). In addition, the Metaverse serves as a hub for digital collaboration and entertainment.
The term Metaverse was coined in Neal Stephenson’s 1992 novel “Snow Crash,” a science fiction thriller. It has since been used in many gaming, social platforms and applications, such as Second Life, where the words “virtual world” are synonymous with the Metaverse.
What are the horizontals in the Metaverse?
A horizontal in Metaverse is a sector or area of digital activity. In other words, it’s an area that expands out horizontally, not vertically. Horizontals in the Metaverse include DeFi (Decentralized Finance), GameFi (Gaming Finance), and SocialFi (Social Finance).
DeFi
DeFi (Decentralized Finance) is a type of financial service that operates entirely on the blockchain. It allows users to access various financial products and services without the need for a centralized third party or bank.
By leveraging blockchain technology, DeFi eliminates intermediaries and makes it possible for users to directly interact with one another. By creating smart contracts, it also allows users to bypass existing regulations. This makes DeFi an attractive option for those looking for freedom from banking regulations and for people who don’t trust central financial systems.
Why is DeFi a horizontal in the Metaverse?
DeFi is a horizontal in the Metaverse for a number of reasons. Firstly, DeFi works in real-time and operates without the need for a middleman. This makes it more secure and efficient than traditional banking systems, where you are always required to rely on a third party provider.
DeFi also provides greater access to financial services and products. Through it, users can access a variety of services such as loans, payments, asset management and more. This means that DeFi provides a greater range of financial freedom to users and is a great addition to the Metaverse.
GameFi
GameFi (Gaming Finance) is a type of financial service that uses blockchain technology to provide users with access to gaming-related services and products. This includes gaming-related investments, gaming tokens, and gaming-based currencies.
GameFi allows gamers to be more involved with their games, as well as allowing developers to monetize and incentivize players for their interactions with the game. This type of financial service can be used to reward players for completing specific in-game tasks, as well as enabling more sophisticated gaming features like tournaments and leaderboards.
Why is GameFi a horizontal in the Metaverse?
GameFi is becoming more and more popular in the gaming industry. This type of financial service enables developers and gamers to monetize and incentivize their game activities. For developers, this means that the financial infrastructure for developing and supporting their games is more easily accessible and can be leveraged for a variety of purposes.
GameFi also incentivizes players to become more involved with their games. It enables gamers to be rewarded with gaming tokens and currencies for their in-game activities. This encourages players to increase their engagement with the game, as they now have an incentive to do so. Thus, GameFi is making its way into the Metaverse and becoming more and more popular.
SocialFi
SocialFi (Social Finance) is a type of financial service that uses blockchain technology to facilitate transactions between people. This type of financial service is used for a wide range of purposes, such as trading of digital assets, cross-border payments, and peer-to-peer commerce.
SocialFi allows users to be more connected with one another, as it eliminates third parties and provides an easy and secure way to transact with one another. It makes it possible to trade digital assets, make payments, and even create digital identities.
Why is SocialFi a horizontal in the Metaverse?
SocialFi is becoming increasingly popular in the Metaverse as it adds a new layer of functionality to the digital world. This type of financial service allows users to be more connected to one another, as it eliminates the need for third parties and provides an easy and secure way for them to transact.
In addition, SocialFi provides users with more access to digital assets, and it makes it easier for them to trade, transfer, and exchange those assets. Moreover, SocialFi makes it possible for users to create digital identities, which can be used to facilitate different transactions.
There’s no doubt that the Metaverse has many interesting horizontals, and DeFi, GameFi, and SocialFi are undoubtedly some of the most prevalent. DeFi allows users to access financial products and services without a centralized third party. GameFi provides users with access to gaming-related products and services, while SocialFi enables users to be more connected with one another and gain access to digital assets. As the Metaverse continues to evolve, these horizontals will no doubt become even more popular in the future.
