China’s Unique Blockchain-Powered Metaverse Vision

Apr. 28, 2023
China’s Unique Blockchain-Powered Metaverse Vision

eChina’s government is charting its course in the metaverse, differing from Western tech giants like Meta, focusing on strategically supporting the economy through technology and regulations.

While Meta and other Western companies aim to create immersive virtual worlds for socializing, China is developing a distinct version of the metaverse focused on economically beneficial applications.

One such example is HiAR, an augmented reality firm founded in 2012 that assists local authorities in identifying mosquito breeding grounds using drone imagery.

Following Meta’s rebranding in 2021, Chinese startups and investors began exploring their own metaverse technologies and integrating mixed reality features into consumer products.

The Chinese government has demonstrated a significant investment in the metaverse, supporting key emerging technologies and establishing regulatory frameworks.

According to Wired, Brady Wang, an associate director at Counterpoint, a technology market research company, stated that the government mainly drives the metaverse in China.

In December 2021, the Central Commission for Discipline Inspection defined the metaverse as encompassing digital twins, mixed reality, and blockchain.

However, after banning cryptocurrencies in September 2021, the Chinese government has effectively separated virtual spaces from digital assets.

Blockchain-Driven Metaverse: China’s Economy-First Strategy

Despite concerns over youth addiction, gaming, a primary metaverse component in the West, has faced government restrictions in China. Instead, the government supports elements that can potentially enhance the economy.

The 14th Five-Year Plan, outlining Beijing’s economic strategy for 2021-2025, prioritizes digital twins. Five ministries have collaborated on an action plan. They aim to expand the virtual reality industry, targeting a value of $51 billion.

The plan identifies innovative areas for growth, such as near-eye displays and rendering processing. Chinese regulatory, Ministry of Industry and Information Technology is also a part of five ministries.

Jingshu Chen, the co-founder of VR company VeeR, said that the government remains focused on long-term policymaking. The recent AI hype has had little impact on their pursuit of metaverse policies.

Meta has dismissed rumours that it has shifted its focus from the metaverse to AI. The company has reinforced its commitment to the metaverse. However, the Metaverse department has reported substantial losses. This quarter, losses total nearly $4 billion.

In 2022, losses reached $13.7 billion. Despite these losses, Mark Zuckerberg emphasizes that building the metaverse is a long-term project. Meta remains dedicated to this vision.

In conclusion, China’s approach to the metaverse emphasizes economic benefits, with the government supporting strategic technologies and establishing regulations.

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While the West focuses on gaming and socializing, China aims to utilize the metaverse, including blockchain technology, to strengthen its economy and pursue innovative applications.

Kashif is a crypto-journalist with over 4 years of experience in the Cryptoverse. He began his career as a software engineer, but his curiosity towards decentralized technology lured him into the labyrinth of crypto, where he discovered a passion for reporting the latest news and developments in the field.