The transition to Web 3.0 already looks complicated for Meta

At the beginning of the month, Meta presented its quarterly accounts which indicated a significant drop in the value of the company's shares. Since the start of the year, Mark Zuckerberg's company has seen its shares lose more than 45% of their value. The medium-term outlook is not necessarily good for Meta, whose economic model does not really fit with the characteristics of Web 3.0. Explanations.

Decentralization of Web 3.0 should hurt data monetization on Meta

Meta is currently experiencing one of the worst underperformances suffered by a publicly traded company, having surpassed $1 trillion in market capitalization for the first time. This could also increase in the coming months in response to the latest announcement made by Google. The latter wishes in particular to make changes to the user identification tool for Android. Once the update is effective, they will be able to block data tracking between applications at will.

This would be a huge blow for Meta whose business model is based on monetizing its users' data through advertising. However, the greatest threat to this economic model comes from Web 3.0, which Meta hopes so much to dominate with its metaverse. Indeed, the decentralization of Web 3.0 gives users the ability to be completely anonymous on the network if they wish. In particular, they will be able to use their wallets to have the authentication process validated, as is already the case on Discord via MetaMask.

Meta will still have to wait to deploy its metaverse 

In addition to increased decentralization, Web 3.0 will introduce new ways to interact online through the metaverse. The latter notably offers an immersive experience that has already met with enormous success in the video game industry. The technology giants, Meta first, intend to rely on the potential of the metaverse to impose themselves in Web 3.0. However, several experts maintain that Meta is not yet ready to begin this revolution,  improvements still need to be made to the peripherals essential to immersion in the metaverse.

Meta's approach would therefore not be viable in the short or medium term if we take into account the effects of decentralization on the monetization of data. It would also seem that the company is forced to wait some more time to have the peripherals necessary to deploy its metaverse in order to generate new income. It is therefore urgent for the company to redefine its economic model in order to hope to maintain its leadership in Web 3.0.

Source: Cointelegraph