The metaverse, NFTs and venture capital are nothing short of intriguing buzzwords in the current Web3 ecosystem, posing both exciting possibilities and complex risks. These scintillating terms have recently converged in a strategic manoeuvre by Animoca Brands, a metaverse gaming and venture capital behemoth that has plowed $30 million into hi, a Web3 payments application. The Web3 future is evidently luring mainstream players, yet with every novel step taken, questions arise around the risks and feasibility.
The ambitious merger promises functionality for non-fungible tokens across the Animoca Brands’ extensive empire and the broader Web3 ecosystem. Principally, this is achieved through “deep integration” with hi’s financial “super app” and its layer 2 Ethereum sidechain. Hi operates as a neobank, a futuristic concept that often stirs both fascination and scepticism; a digital-only platform enabling users to transact crypto or regular fiat currencies. This component is significant, as in 2022, hi partnered with a global payments powerhouse to issue unique NFT-infused debit cards.
Although this strategic alliance is propelling the cryptocurrency utility forward, it’s also projecting a range of regulatory ambiguities into the limelight. The immediate plan is to dilate the super app and pioneer the mainnet launch of hi’s Ethereum Virtual Machine (EVM) compatible protocol, whilst concomitantly eyeing expansion into Asia, Latin America, and finally, the U.S, albeit the latter is contingent on regulatory clarity. As we’re aware, these international markets differ vastly in their acceptance of novel technologies, adding layers of complexity to the expansion plans.
In a distinctive step, hi is developing a Proof of Human Identity (POHI) for its user authentication process; a far cry from the conventional approaches or the controversial iris scans that some blockchain enthusiasts argue compromise privacy. Sean Rach underscores the fragility of solely looking at the success of a blockchain through the number of active accounts, pointing out that you could “write a script and whip up 1,000 Ethereum addresses and use bots to trade.”
On a final note, the Animoca-hi alliance is notable, emphasising the sheer scale and potential of the Web3 ecosystem. However, the path to actualising this grandiose vision teems with questions around regulation, privacy, and the ability of these technological feats to reach a wider public. After all, it’s one thing to paint the picture of a bright blockchain future; another to make it a tangible reality for the masses.
Source: Coindesk
