Embracing the Metaverse: Mechanism and logic of a new digital economy

Abstract

<p>The Metaverse refers to virtual world and survival vision in which human beings will be more deeply engaged. It is initiated in game platforms and based on the innovation and circulation of digital currency and dependent on the development of digital technology and devices. The Metaverse craze hit China in 2021 for various reasons, such as the systematic change of the Internet protocol due to the development of block chain technology, more involvement in virtual life due to the COVID-19 pandemic, the aggravated crisis of old global narrative, and new patterns emerging in digital economy following PC digital economy and mobile digital economy. The Metaverse economy is a new digital economy different from the previous digital economies due to the emergence of digital currency along with the development of digital legal currency, and a series of new production and business models around digital assets. What underlies this new digital economy is the fact that digital currency is no longer controversial cryptocurrency and that several central banks have agreed to issue digital legal currency. The new digital assets in the form of NFT or NFR backed by the distributed ledger technology will bring a variety of reforms in business models and big upheavals in production, circulation, and consumption patterns. The interaction between digital and physical assets will create new economies. In the Metaverse economy where recognition determines value, in terms of technology it is possible to capitalize on the values such as cultural value, historical value and aesthetic value. This will give rise to more diverse economies and expand global economy.</p>