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Mojang Studios bans Minecraft NFT integrations

"NFTs can create models of scarcity and exclusion that conflict with our Guidelines and the spirit of Minecraft," says the entity.

On Wednesday, Minecraft's developer Mojang Studios said that it would be excluding the integration of nonfungible tokens, or NFTs, alongside blockchain technology as a whole, in its popular namesake game. In explaining the decision, Mojang wrote:

"Like any digital file, NFTs can be copied, moved, or even deleted. Additionally, NFTs and blockchain have also been associated with price speculation. These uses of NFTs and other blockchain technologies create digital ownership based on scarcity and exclusion, which does not align with Minecraft's values of creative inclusion and playing together."

As told by Mojang: "To ensure that Minecraft players have a safe and inclusive experience, blockchain technologies are not permitted to be integrated inside our client and server applications, nor may Minecraft in-game content such as worlds, skins, persona items, or other mods, be utilized by blockchain technology to create a scarce digital asset."

The company also criticized the "speculative pricing" and "investment mentality" around NFTs that take away from the game experience and encourage profiteering to the detriment of long-term game playability. Furthermore, it pointed to rug-pulls surrounding certain third-party NFT integrations, as well as NFT wash trading, or fraudulent price manipulation to support the ban.

Under the new rules, third-party blockchain technologies cannot be integrated with client and server applications within Minecraft. Nor may they be utilized to create NFTs associated with any in-game content, including worlds, skins, persona items, or other mods. Although the changes do not affect most Minecraft gamers, it is likely to have significant consequences for a small subset of such gamers who are also profiting from in-game NFTs. Third-party for-sale NFT collections digitizing Minecraft in-game assets may therefore be in violation of such terms and could potentially face legal consequences.

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$3B flows to Metaverse and Web3 gaming this month as A16z’s tips in $600M

“GAMES FUND ONE” will invest in game studios, consumer apps and game infrastructure providers with a16z saying the industry has “solved many of the problems” needed to make a Metaverse.

Venture capital firm Andreessen Horowitz (a16z) has launched a $600 million fund dedicated to gaming startups with a focus on Web3 saying it believes “games infrastructure and technologies will be key building blocks of the Metaverse.”

Dubbed “GAMES FUND ONE” the fund will invest in three main areas: game studios, consumer applications which support player communities with Discord used as an example, and gaming infrastructure providers.

The a16z team said “the coming Metaverse will be built by games companies, using games technologies” and that the industry has already “solved many of the problems that need to be solved to create the Metaverse.” It believes games will become the “dominant way people spend time.”

The move by a16z marks nearly $3 billion committed by venture funds and gaming industry giants into Web3 gaming or Metaverse projects since mid-April. Venture firm White Star Capital raised $120 million for its decentralized finance (DeFi) and gaming focused fund along with a $200 million allocation to blockchain gaming projects by Framework Ventures both taking place in April 2022.

Metaverse projects are also gaining massive sums from gaming industry titans. Last month Epic Games, creator of the popular Fortnite title, raised $2 billion to create a metaverse with funding from Sony and LEGO.

The team at a16z pointed at the billions of dollars in revenue thatgames such as Minecraft generate, using the open world game as an example of a title that has retained a long-term active community which functions more like a social network. Minecraft is the current all-time highest selling game and has seen 173 million average monthly players over the past 30 days according to figures from game statistics platform ActivePlayer despite it being released almost 11 years ago.

Related: There is room for the Metaverse in 2022, but the virtual space is far from perfect

The fund is the first by a16z solely dedicated to games but the firm has backed successful game related projects in the past includingng virtual reality (VR) company Oculus and game developer Zynga saying the investments “cemented our belief that games require a specialized focus.”

Joining the fund were founders of game development companies and popular games such as the co-founder of Riot Games Marc Merrill, cofounders Aleks Larsen and Jeffrey Zirlin of Sky Mavis which owns the popular Axie Infinity blockchain game and Kevin Lin, founder of gaming company Metatheory which received $24 million in a funding round led by a16z.

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Is Web3 like playing Minecraft?

Web3 is coming. Are you ready for it? Use the newest version of the internet and expand your whole online experience.

How to use Minecraft to understand Web3?

Minecraft makes the transition from analog block building to an immersive gaming experience rather easy and playful.

Users can turn the Minecraft experience into whatever they want it to be. They can play, create, socialize and invest. For everyone who wants to hop on the Web3 train and explore the opportunities of the Metaverse can start by playing the game in a 3D world.

It goes without saying that if you’re familiar with Minecraft or even the concept of online gaming in general, you can imagine how to build and play in one or more virtual worlds. This Minecraft universe, especially with the newest addition of the NFTs, is like the portal to the Metaverse. Build blocks in the Minecraft worlds and continue to build blocks — on the blockchain — in NFT Worlds.

The Minecraft Metaverse?

Minecraft not only enables P2E and enters the world of Web3 gaming. It also is taking the first steps in the Metaverse.

The Metaverse is a network of all kinds of 3D virtual worlds. NFT Worlds is enabling the Metaverse experience, which is what makes NFT collectors, Metaverse fanatics and enthusiastic gamers happier.

NFT Worlds is not only an endless universe of different Minecraft worlds, but it’s also a way to earn money while gaming. It’s called play-to-earn and essentially, you’re earning tokens while playing the game. With these tokens, you can buy NFTs and even collect them if you like. After the decentralized finance (DeFi) boom in 2020 and the NFT rise in 2021, Web3 gaming may be the newest trend for 2022.

Related: Crypto Raiders explains how blockchain gaming attracts new users to Web3.

How will Web3 change our lives?

Web3 will make our online lives more personalized and more secure and will vouch for a better experience.

It’s important to know that Web3 will have to communicate intelligently with people and with machines and data. Software must be able to process information conceptually and contextually. But, in which ways are you going to explore the differences between Web2 and Web3? What is the point of web 3.0?

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So, in summary, it will be more user-oriented and accessible, like playing Minecraft. Say what? What’s Minecraft got to do with it? Aren’t little kids playing Minecraft?

How does Web3 work?

Web3 puts major companies like Meta out of business and gives every user rights to develop the next big thing together. Decentralization and the combination of humans and machines will be the heart of the Web3 projects.

There is a reason for users’ passive participation: We’re still busy trying to get the biggest part of the pie. But now, Web3 is in the pipeline. This is going to change radically. In the upcoming years, there’s going to be a shift from tech giants who are “the boss” to individuals who are taking the lead.

When the development of Web3 is concluded and if you’re working within IT, blockchain or crypto space, you’re working on it too, we’re all going to be the boss. Data is going to be stored in a decentralized manner and everyone and everything will be connected. It offers opportunities and has risks at the same time. Think about privacy and compliance risks, smart contract hacks and rug pulls. Greater control requires greater responsibility.

Cryptocurrency, NFTs, smart contracts and blockchain technology will be essential in the upcoming Web3. Smart contracts are fully digital contracts and they will take the lead in a secure and automated online environment. Machine learning, artificial intelligence and the Internet of Things will also have a seat at the table, so you can imagine what kind of revolution this will have on us as daily users of the internet.

Web3 vs. Minecraft

Web3 enables the newest version of Minecraft and will upgrade the gamer experience.

So, we know now what Web3 is, but what’s the difference between Web3 and Minecraft? And, how is it connected to the Metaverse? Web3 is the newer version of the internet, where everything is more connected and decentralized — just like the already existing Minecraft worlds. Minecraft is an adventurous game with endless possibilities, where you can build and explore the ever-changing landscape.

The evolution of Minecraft could easily be described as a transformation from building blocks on your own computer to building blocks for the Metaverse. In March 2022, Minecraft launched a new blockchain layer which is mindblowing news for all the fans. It allows players to access Web3 features in a play-to-earn (P2E) kind of way, as they can purchase items for their Minecraft world. The combination of Minecraft and nonfungible tokens (NFTs) even got a catchy name: NFT Worlds.

With NFT Worlds, Minecraft enters the world of third-party servers. NFT Worlds is built on a Polygon-based layer, so all users get access to the Web3 functionalities. The in-game experience can be made more compelling by purchasing items on the online shop. You’re no longer paying with United States dollar or euro because $WORLD ERC-20 tokens are here to let you play the game.

What is Web3?

Web3 may feel like hype but will most likely be the newest version of the internet.

Web3 is a buzzword lately, especially for those who are interested in technology, blockchain technology and crypto. It’s going to be the future of the internet, where we all are going to take part in. Even though we’re used to buying, watching and finding everything online, there’s one thing we can’t do at the moment: taking the lead.

Giants like Google, Meta and Amazon are ruling the online world right now, but they’re excited for the new making its appearance. Alphabet Inc. CEO Sundar Pichai tells in a Bloomberg interview he’s “watching the blockchain space and looking at how Google’s parent company can add value to development of the technology that’s being embraced by many of his Silicon Valley peers.”

Related: How to use Minecraft to understand the metaverse and Web3.

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Minecraft-linked developers draws up pledge for NFT and digital asset engagement

The group did not appear to be entirely satisfied with the current direction of GameFi.

Over the weekend, Climate Replay, which comprises of developers from Mojang Group, the maker of the popular Minecraft series, posted a pledge regarding the responsible integration of nonfungible tokens, or NFTs, and digital currencies, into gaming.

"Games give us hope in a world that is increasingly uncertain. They help us unlock our creative potential and free us of real-world constraints – physical, financial, or otherwise," the team at Climate Replay said. However, they cautioned about the current state of digital assets intertwining with gaming: 

"Most NFTs, and by consequence, most forms of digital ownership, in their current state, serve the exact opposite purpose – their value is defined entirely by artificial scarcity and speculation and powered by an unnecessary expenditure of physical resources."

"Thus, it is imperative for the health of the worldwide gaming community, planet, and society as a whole to ensure any adoption of blockchain-based technologies such as NFTs occurs only when they bring demonstrable value to games and their communities," wrote the team behind the gaming entity. To potentially solve the aforementioned problem, they proposed that game finance, or GameFi; developers abide by, among others, the following guidelines:

  1. Brings meaningful value to players [through digital assets].
  2. Does not make use of technology that is intentionally inefficient, resulting in a concrete, significant environmental impact.
  3. Does not embrace artificial scarcity to generate speculative value.
  4. Does not rely on unregulated, volatile cryptocurrency.
  5. Does not disproportionately benefit early adopters or wealthier users/players. 
  6. [Is] Implemented with transparency and takes concerns from studio members seriously.

It also appears that Climate Replay wants to see major changes to the current play-to-earn, or P2E, model associated with GameFi. This includes shifting the primary purpose of such games from P2E to enjoyment. In other words, players should not be earning incomes from such games as an "informal job." Cointelegraph previously reported last year that individuals in developing nations playing popular NFT game Aixe Infinity had been earning incomes higher than the minimum wage of their native countries.

However, players are increasingly becoming frustrated with the steep drop in price of a major in-game token within Axie Infinity, leading to a corresponding plunge in their income levels.

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How to use Minecraft to understand the Metaverse and Web3

People can have a better knowledge of the Metaverse and Web3 by learning how to utilize Minecraft.

What is the Metaverse?

The Metaverse is a term coined by Neal Stephenson in his 1992 science fiction novel Snow Crash to describe a future virtual reality-based online world. Some have gone as far as pronouncing Stephenson’s novel a prediction of the future.

Before you agree that it’s some mystical peek into the future and invoke the rules of time travel, let’s first investigate what the Metaverse is through the lens of something much more accessible: Minecraft. But, more on this later.

Unlike the internet or even virtual reality as we know it today, the Metaverse would be a fully immersive 3D environment where people could interact with each other and with digital objects as if they were real.

The Metaverse is yet to be fully existent. However, some platforms have already created experiences close to what the Metaverse will be like. Video games, for example, have already pushed the boundaries of gaming via virtual economies and in-game events.

Simply put, the Metaverse is a concept of an online 3D universe that patchworks various virtual spaces. Much like a future iteration of the web, the Metaverse is coming to fruition bit by slow bit. The goal is to allow users to socialize, game and even work in these 3D spaces.

It could be said that as technology evolved, the emergence of something like the Metaverse was an inevitability — a natural evolution of sorts as things ran their course.

Related: Microsoft metaverse vs. Facebook metaverse: What's the difference?

What is Web3?

Web3 is the third generation of the World Wide Web and refers to the vision of a decentralized web. The first iteration, or Web1, was focused on static content, while Web2 introduced dynamic content and social media features.

Now, with Web3, the focus is shifting toward a more decentralized web where users are in control of their own data. Originally called the “Semantic Web” by inventor of the World Wide Web Tim Berners-Lee, Web3 is geared toward enabling websites and applications to process information more autonomously and intelligently.

Through technologies like Big Data, machine learning and decentralized ledger technology (DLT), data can be processed in a smarter, more human-like way.

How is Minecraft a helpful tool to understand the Metaverse?

Minecraft is a game that allows players to build and explore in a 3D world. It is also one of the first games to offer a virtual economy, with players able to trade items. As such, Minecraft can be used to understand the concept of the Metaverse.

By understanding how to use Minecraft, people can better understand the Metaverse and Web3. In addition, they can learn about the potential of these concepts and how they can be used in the real world.

What makes Minecraft a great metaverse platform?

A few key factors make Minecraft a great platform for the Metaverse. Minecraft is highly adaptable, meaning that players can create their own content and share it with others. This makes it easy to create new experiences and worlds within the game.

Minecraft also has a large and active community that creates a sense of belonging, allowing players to connect with each other. Most importantly, Minecraft is constantly evolving, with new features and updates being released regularly. This makes it easy to create new experiences and worlds within the game.

There are many more areas in which Minecraft has succeeded as far as metaverses are concerned. Let’s break them down below:

The Minecraft metaverse is decentralized — nobody owns it

There’s a reason why Mark Zuckerberg’s desire to build the Metaverse via Facebook was met with derision by many in the crypto community.

Facebook’s move gives us a peek into a metaverse largely owned by tech giants like Zuckerberg. It’s Monopoly all over again and goes against the grain of decentralization, which is essentially what the Metaverse is about.

On the other hand, Minecraft is a great example of a decentralized metaverse. While Microsoft owns the game, it is still an open platform that anyone can access and play. No one company controls the game or dictates what players can do.

Minecraft works well because each metaverse can have its own rules of engagement. On Minecraft, anyone can create a metaverse, as opposed to Facebook's intent to create a monolithic version of the Metaverse. This decentralization is key to the success of the Metaverse, as it allows for a more democratic and open environment where anyone can contribute.

It’s immersive even with low-fi tech

Despite all the hullabaloo concerning the Metaverse being an extremely high-tech version of everything we know to be true of the web today, Minecraft gives us a glimpse of what it really might be.

Minecraft managed to be exceptionally immersive while using low-fi tech — no virtual reality (VR), augmented reality (AR) or holograms necessary. The hype surrounding the impending metaverse assumes that digital worlds can only be truly immersive with VR cams strapped to our heads. And, maybe wind blowing into our ears from a nano-fan for good measure so we can really feel the breeze as we walk in our digital garden.

Yet, Minecraft proves that metaverses can be immersive even when accessed through plain old computer screens — no VR goggles required. In case you haven’t tried it yet, Minecraft can run even on very old equipment.

Minecraft has a unique purpose

People play Minecraft for different reasons. Some want to create, some want to explore and some just want to socialize. In a way, Minecraft has become a platform for people to do all of these things and more.

The game offers a unique purpose that sets it apart from other games on the market. This is one of the main reasons why Minecraft has been so successful. It’s a game that can be anything you want it to be, making it perfect for anyone who wants to explore the potential of the Metaverse.

Minecraft Education, for example, allows students to experience and imagine worlds and cultures beyond their own. For example, in partnership with Microsoft, Piki Studios helped students in New Zealand learn about the Te Ao Māori culture through Minecraft.

Related: Metaverse for education: How virtual reality can help schools and colleges

How do people interact within a Minecraft metaverse?

Players can interact with each other through various methods such as chat, private messages and forums. In addition, players can also join servers to play together. Servers are dedicated game worlds that players can connect to.

The most common way to interact within the Metaverse is to contribute within the context of the server you are on. If you’re in a server attempting to reach a huge build, you’ll have to chip in each day to meet the deadline.

If you’re a part of a second life simulation server, you’ll have to play your role, whether as a warrior, miner or fighter. If you’re on a narrative-driven server with factions and such, you’ll have to roleplay and make the experience as real as possible for all players.

Notable metaverse projects built on top of Minecraft

There are more than a dozen projects based on the 2011 video game, with Minecraft world seed nonfungible tokens (NFTs) selling for tens of thousands of dollars each.

For example, NFT Worlds is a collection of 10,000 unique Minecraft world NFTs. Each NFT has a “world seed,” or a code capable of generating a Minecraft world. Metaverse destinations can also be hosted on a player’s own server with the help of verified builders.

Uplift World is another Minecraft metaverse, a play-to-earn metaverse built on the WAX blockchain. It also uses NFTs and has a transportation railway system that’s tokenized.

Enjin, on the other hand, has also been one of the early releasers of a Minecraft metaverse EnjinCraft plugin and Java SDK. This has allowed some people to build a Minecraft metaverse on the blockchain using Enjin and Ethereum, providing a peek into the future as more developers build on top of Minecraft.

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