Why Decentraland Is Fighting Back Against Centralized VR Worlds Without an alternative, VR users will lose.
We’ve already covered how virtual economies are exploding: the virtual goods market now exceeds $52 billion annually, up from $15 billion in 2012. This growth has largely been driven by massive gaming universes such as EVE Online and World of Warcraft.
Immersive VR worlds like Decentraland will create virtual economies much larger than ever before.
To enable the creation of mainstream digital goods and services, platforms must exist to facilitate the exploration and transaction of content. While many options are under development, nearly all suffer the same limiting factor: a centralized agent acting as an intermediary between all interactions.The Problem With Centralized VR Worlds
A VR world controlled by a centralized entity (often a corporation) poses several issues:Control over rules — Artists, developers, and consumers are limited to transacting only items and services approved by the platform owner. This has spawned ‘virtual black markets’ in many digital worlds, reportedly worth over $6 billion. Control over transactions — Users are unable to capture the full value of their actions due to transaction costs. For example, Second Life levies a 5 percent fee on any exchange of items between users. Control over access — Centralized platform operators can ban access to any user, at any time, at their discretion. Control over in-world currency — For in-world currencies, users are at the mercy of a single entity determining monetary policy, with little insight into future actions that can impact their ownership value. For example, in early 2017, EVE Online announced that it was revising the game’s major currency system, deleting any player’s balance under 1,000 Aurum (roughly $10 to $13). There were literal in-game riots in response. The Solution
Due to these limitations, VR use...