Why Could Hillstone Become A Provider of Decentralized Financial Services for Metaverse?
1. The prologue of metaverse: from sci-fi to reality
In 1992, Neal Stephenson first proposed the concept of “metaverse” in his science fiction “Snow Crash”, which was then translated as “super meta universe”. To this day, this concept has evolved into “metaverse”, which has gained exponential popularity across the entire Internet world. In the fiction, human beings in the real world could enter the metaverse through VR equipment and live with “virtual people” together in the world of metaverse.
Back at the time, this setting did not attract much attention. But in recent years, mobile Internet technology has been developing rapidly, and the market of blockchain applications is also on the rise. As a result, assets, NFTs, and game characters can all be stored onto the blockchain, and even become interconnected. This year, the concept of metaverse became a huge hit overnight, and numerous Internet giants announced that “metaverse” has been put on their agenda. The public finally began to realize that we might be embracing the age of metaverse sooner than our imagination.
In fact, the Internet’s exploration of metaverse did not only begin this year. In 2003, a development team released a virtual world game named “Second Life”, where people can conduct social activities such as socializing, shopping, construction, and running business. At the same time, this system had a strong world modification function and a well-developed virtual economic system, which also attracted the attention of a large number of enterprises and educational institutions.
Before the birth of Twitter, news organizations such as BBC, Reuters, CNN used “Second Life” as a platform to post information; IBM also purchased real estate in the game and established its own sales center there; Countries like Sweden even established their own embassies in the game, and the Spanish political parties also had debates in that virtual world.
At that time, “Second Life” was a phenomenal project. Later on, however, due to the underdeveloped technology, the lack of talents, and how reluctant the public was to accept the virtual world, it did not manage to continue its popularity till this day.
2. Key contributor to the economy of metaverse
Since this year, the NFT has become a huge hit, and metaverse has also demonstrated a shocking power. Behind this is the “clustering effect” of all the metaverse-related elements. This is similar to the clustering effect experienced by the Internet in 1995. Therefore, it is not difficult for us to imagine that in the next few years, the infrastructure for metaverse will be completed over time, and we will witness another era of great changes, after the Internet revolution.
Metaverse is essentially a virtual space parallel to and independent of the real world. Unlike the real world, urban and social systems in metaverse are not composed of physical characters and buildings, but a blockchain ecology based on the technology of the Internet as well as blockchain.
We can also simply conclude that a metaverse world will comprise elements such as identities, friends, immersiveness, low latency, diversification, unlimited locations, economic systems, and civilization.
Among these elements, the economic system is the key factor that determines whether the order can be maintained and the social system can continuously function in a healthy manner in the metaverse world. Therefore, the construction of the blockchain economic system will be the focus of the future development of metaverse. Providers of decentralized financial services based on blockchain technology will also become an indispensable part of the metaverse area.
Since the ultimate goal of metaverse is to form a parallel world that also connects the real world, the economic system in the metaverse world also needs to achieve interaction between the blockchain and reality.
Under this premise, developers do not only need to continuously create valuable assets for the metaverse world and provide venues for interaction and circulation of assets on the blockchain, but also need to realize the circulation and conversion between assets on the blockchain and physical assets in the real world. Such circulation and conversion of assets entail providers of decentralized financial services that integrate the circulation and trading of traditional financial products, real life assets, and assets on the blockchain.
These are the original purposes of Hillstone. As a comprehensive financial service platform that integrates the trading and circulation of traditional financial products and assets on the blockchain, Hillstone can realize the multi-scenario circulation and timely conversion of diversified products, such as traditional financial products, real-world assets, and assets on the blockchain. This is the key contributor for the metaverse blockchain to connect the real world.
3. Financial service provider for metaverse
Hillstone is named Hillstone Finance in its entirety. It is an asset liquidation platform based on smart contracts. It provides pledging, lending and trading services for various financial products or physical assets, enriching and facilitating channels of investment and financing for the public. However, Hillstone’s ultimate vision is not just to become a simple financial platform, but to become a provider of decentralized financial services in metaverse, to build infrastructure for the metaverse, and to speed up the creation of the metaverse world.
Hillstone’s product ecology mainly revolves around Investors, a virtual asset collateral pledge platform. Users can gain profits by staking assets guaranteed by Hillstone (such as risk funds, etc.) at Investors. This behavior of obtaining profits through certain financial activities corresponds to the process of asset acquisition, usage, and circulation in the metaverse economic system.
At the same time, the cryptocurrency placed by the user in the staking pool of Investors can also be converted into HSF (Hillstone platform governance token) at any time, and the converted HSF tokens can be used to purchase staked products, thereby making the trading process of financial products more simple and efficient.
During this course, HSF (Hillstone platform governance token) will be used as the platform’s circulation token, which can anchor the price and convert the value of the assets on the blockchain and other pledged financial products, so as to realize the circulation and exchange among different types of assets.
When the metaverse has developed to a certain stage, a variety of metaverse assets will emerge on the blockchain, such as virtual land, virtual real estate, virtual food, virtual clothing, and even virtual identities. All of these will become assets belonging to the metaverse citizens. When users need to sell, purchase, transfer, or even store these assets on the blockchain, decentralized service providers like Hillstone will become the ideal place for asset circulation and exchange.
4. Promoting the arrival of the metaverse era
With the nonstop progression and expansion of the metaverse field, the value of its underlying service providers will become increasingly prominent. For a metaverse financial service provider, whether it can truly achieve decentralization is one of the core competitiveness of the platform. Hence, Hillstone will uphold the principles of freedom and openness, achieve the decentralized governance of the platform via a decentralized autonomous organization in future, and reduce the sense of boundary between users and the platform.
Hillstone Finance Foundation will eventually be replaced by the Hillstone General Council (HGC), a DAO-based council for the platform autonomy. This organization will construct a sustainable investment platform that allows users to access the platform’s investment products more easily. The first group of HGC members includes 10 institutional investors, including Hillstone Finance Foundation.
In order to ensure the long-term sustainable development of the Hillstone platform, all candidates who want to join HGC must have a demonstrated performance (or experience) in fund management for at least 5 years. At the same time, all members must deposit HSF in the Council’s reserve and assist Hillstone in optimal decision-making. This ecology of community autonomy can further decentralize the governance of the Hillstone platform, and is more in line with the economic governance philosophy in the metaverse world.
In summary, Hillstone is building a comprehensive financial platform based on the metaverse world in future. This platform can provide decentralized services for the circulation of real-life financial products and assets on the blockchain.
On the basis of the multi-scenario and diversified value system in metaverse, Hillstone will synchronize the launch of traditional financial products, asset lending, pledging and exchange, and circulation and trading functions for various financial derivatives on the blockchain. It will serve the complex and enormous financial system of metaverse, and promote a sooner arrival of the metaverse era.