User-Generated Content Can Stabilize Digital Economies, Says ‘Snow Crash’ Author
Neal Stephenson’s 1992 novel, “Snow Crash,” is widely regarded as one of the most formative texts in Web3. It introduced the term “metaverse” to popular culture and predicted many of the developments we see today in the world of digital assets. However, while the novel anticipates many aspects of modern virtual experiences, it did not predict the intense speculation and financialization that has come to dominate the NFT market.
Despite this, Stephenson retains an optimistic vision for the potential of the metaverse. In a recent interview with Decrypt, he argued that the future of digital economies should move away from pure financialization and towards a more diverse and stable economy that places a value on digital assets beyond their selling price. He believes that this shift can be achieved by allowing owners of digital assets to have a role in shaping and creating their own assets, which will create a sentimental value and lead to a more stable economic system.
Stephenson is critical of the current culture of speculation that has emerged around digital assets. He warns that a lack of sentimental value means that entire NFT collections can be sold in the blink of an eye, contributing to the volatility of digital asset prices. He also draws a parallel between the current state of digital assets and “Tulip Mania,” a historic speculative bubble that took place during the 17th century in Holland.
To create a more stable economy in the metaverse, Stephenson believes that users must be empowered to build unique pieces of UGC, or user-generated content. By creating deeper connections to their digital assets, people will be less motivated purely by profit and more invested in the sentimental value of their creations. Stephenson cites his experience with survival game Valheim, where he built a base in collaboration with friends. He notes that even if the structure could be sold, the experience of creating and living in it would likely mean that he and his friends would not wish to do so.
The underlying concept behind this is that when people develop deeper relationships with their digital assets, they become less like pure investments and more like personal items. This is the same kind of value that can become ascribed to something essentially worthless but which holds sentimental value, such as a worn 30-year-old paperback book. Stephenson notes that such an item has intangible connections that are more valuable than its cash value because of the personal and emotional experiences associated with it.
In creating opportunities for people to build unique UGC, Stephenson concludes that the future of the metaverse could help move the economy towards greater stability. Such unique experiences would create personal connections and attach sentimental value that would discourage speculators and increase the value of digital assets in a manner unrelated to their selling price. So while digital assets may continue to be a part of the financial world, the ability to develop deeper connections with them could help to create a more stable digital economy in the future.
In conclusion, the metaverse has the potential to be a fantastic new frontier for digital content, and Neal Stephenson is helping to lead the charge. His prediction of the cultural and financial importance of metaverse experiences has been prophetic, yet his vision for a more stable economy built around user-generated content is both wise and heartening. By building personal connections and valuing digital assets beyond their cash value, we can help to create a metaverse that benefits everyone involved. So, let’s start building the metaverse of our dreams together today!
