Is Facebook Meta good for the Metasverse?

2022-06-03 0 By

Meta shares plunged 20% on poor fourth-quarter financial results, as the company spent most of its earnings on metaverse construction.Is the idea of its centralization and control of the metadverse antithetical to the idea of what the metadverse should be?Zuckerberg’s Facebook, now known as Meta, saw its first user decline in 18 years.As platforms like Tiktok steal many users, Meta is struggling to stay relevant as the younger generation sees it as a disjointed platform for older people.The social media giant’s case has not been helped by negative news over the past few years involving user data hacks and scandals.The question now is whether entering the meta-universe is a planned response to how the future will shift in that direction, or whether Meta is desperate to realize that the tide is going upstream.So far, the successful strategy of big companies like Facebook has been to provide a closed ecosystem where users are completely dependent and dependent on it.Thus, Meta’s strategic management thinking may be in line with their vision of the metadverse, where they will control access and earn revenue from everything that happens inside.Yet it is curious how eager people will be to enter a meta-universe where everything is controlled by companies, including all their data and privacy, and the risks inherent in such a centralized system.Meta will help build some structures and tools because it has a lot of resources, including money and talent.But it also brings him back to the centralisation that has plagued it in recent years.Ryan Selkis, CEO and co-founder of Messari, a cryptographic research platform, says four elements of decentralization are needed: computing power, storage, governance, and money.All of these elements are currently provided by various decentralized projects in the crypto space.In the absence of corporate or government control, perhaps for once people will be able to control their privacy, data and money.