The Sandbox is a metaverse that is attracting attention.
There is a place called The Sandbox.
The metaverse will allow people to securely own digital items across different virtual worlds, according to Goldman Sachs.
The Wall Street bank's analysts, led by Rod Hall, said in a note published Tuesday that the technology was one of the most disruptive since the early days of the internet.
The metaverse is a term that refers to virtual worlds in which people can play, work, socialize and trade.
Facebook changed its name to Meta in October to focus on building virtual worlds for the future of the internet.
Users have been coming to the gaming metaverses such as Axie Infinity. They allow players to create and trade items in the form of non-fungible token, or NFTs, and have in-game economies that use cryptocurrencies.
Goldman's analysts said that the development of metaverses should be based on the fact that users can securely own assets and move them across different platforms without the need for a central party's permission.
Users can buy and sell in-game land and NFTs on exchanges outside of the metaverse with the help of The Sandbox.
Goldman believes that the metaverse is likely to be an amalgamation of different 3D spaces and that users will move between these regularly.
Virtual goods and services that are not able to move from one space to another with the user are likely to be less valuable.
A CEO who just spent $2.6 million on digital real-estate shares his approach to metaverse investing, and why more crashes won't affect enthusiasm for the virtual world.
The analysts said that the only technology that can identify any virtual object independent of a central authority is the one in the metaverse.
The functioning of the metaverse will be dependent on this ability to identify objects and track ownership.
A digital ledger of transactions is overseen by all members of the network rather than by a central party. Users called "miners" have to solve problems in order to keep the network secure.
It's not clear if the company thinks the use of decentralization will play much of a role in the metaverse.
The company's financial strength and power in social media makes many worried that it could come to dominate the metaverse and control creation and trading.
Critics are skeptical of the whole idea of the metaverse, noting that previous virtual worlds such as Second Life have been around for years and that virtual reality headsets have never really caught on.
Goldman said it was too early to work out clear investment strategies around the block chain, but it was bullish on the whole thing.
The analysts said that there are far-reaching implications for both digital and physical entities.
The technology could increase privacy on the internet and eliminate the need for centralized control in industries such as supply-chain management, according to Theey.
Business Insider has an original article.
