What does Mark Zuckerberg think about Web3

Introduction: The Incumbent's Gambit

Mark Zuckerberg, the founder and CEO of Meta (formerly Facebook), represents one of the most significant and controversial forces in the Web3 and metaverse discourse. Unlike the crypto-native builders who envision a decentralized future, Zuckerberg is approaching the metaverse from the perspective of a Web2 incumbent. His goal is to build and dominate the next computing platform, much as his company did with social media.

This guide provides a comprehensive analysis of Mark Zuckerberg's vision for the metaverse, the motivations behind Facebook's rebranding to Meta, the company's massive investments in VR/AR technology, and the stark contrast between his centralized approach and the decentralized ethos of the Web3 community.

The Pivot to Meta

In October 2021, Mark Zuckerberg announced that Facebook, the parent company of Facebook, Instagram, WhatsApp, and Oculus, was rebranding to Meta. This was far more than a name change; it was a public declaration of a company-wide pivot. Zuckerberg stated that the company's new mission was to "bring the metaverse to life and help people connect, find communities, and grow businesses."

This move was driven by several factors:

The Next Computing Platform: Zuckerberg believes that the metaverse—an immersive, 3D version of the internet—will be the successor to the mobile internet. He wants to ensure that his company controls the hardware (VR/AR headsets) and software (the core platforms) of this new era, avoiding the dependency he has on Apple and Google in the mobile world.
Escaping the Social Media Trap: The Facebook brand had become increasingly tarnished by controversies over data privacy, misinformation, and content moderation. The rebrand was an attempt to distance the company from its social media past and define itself by its future-oriented ambitions.
The Threat of a Decentralized Web3: Zuckerberg is acutely aware of the threat that a decentralized, user-owned Web3 poses to his centralized, ad-driven business model. By building his own proprietary metaverse, he is attempting to co-opt the narrative and create a "walled garden" version of the metaverse before the decentralized one can gain mass adoption.

Core Thesis: A Centralized, Polished, and Integrated Metaverse

Zuckerberg's vision for the metaverse is fundamentally different from that of the Web3 community. Where Web3 builders see an open, interoperable, and user-owned world, Zuckerberg envisions a polished, integrated, and company-controlled experience.

1. The Primacy of Hardware

Meta's strategy is built on controlling the hardware gateway to the metaverse. The company has invested tens of billions of dollars into its Reality Labs division to develop the Oculus (now Meta Quest) line of VR headsets and to research future AR glasses.

Why Hardware is Key: By owning the hardware, Meta can control the operating system, the app store, and the core user experience. This gives them the power to set the rules of the platform and take a cut of all transactions, much like Apple does with the iPhone App Store.
Subsidizing Adoption: Meta has aggressively subsidized the cost of its Quest headsets, often selling them at or below cost, in a bid to get as many devices into the hands of consumers as possible and build a critical mass of users before competitors can catch up.

2. Horizon Worlds: The Flagship Application

Horizon Worlds is Meta's flagship social VR application. It is a user-generated world where people can create their own environments, play games, and socialize as avatars.

A "Walled Garden": Horizon Worlds is a classic example of a "walled garden." It is a proprietary platform entirely controlled by Meta. The assets created within it are not interoperable with other platforms, and Meta has complete control over content moderation and monetization.
High Take Rates: Meta's plan for monetization in Horizon Worlds drew heavy criticism from the Web3 community. The company announced it would take a cut of up to 47.5% on the sale of digital assets within the platform—a rate even higher than Apple's controversial 30% App Store fee. This stands in stark contrast to the low single-digit royalty fees common on open NFT marketplaces.

3. A Focus on Avatars and Social Presence

Zuckerberg's vision is heavily focused on the feeling of "social presence"—the sense that you are truly "there" with other people in a virtual space. He has invested heavily in developing expressive, realistic avatars and creating virtual environments for work and play. His initial demo of a leg-equipped avatar in Horizon Worlds, while later revealed to be motion-captured, shows the company's focus on creating a polished and relatable user experience, even if the underlying technology isn't fully there yet.

The Clash with Web3 Ethos

Meta's approach to the metaverse is fundamentally at odds with the core principles of the Web3 movement.

Conclusion: An Attempt to Build the Next Walled Garden

Mark Zuckerberg and Meta's entry into the metaverse represents a critical battle for the future of the internet. Zuckerberg is making an audacious, multi-billion dollar bet that he can build a proprietary, integrated, and user-friendly version of the metaverse that will win over the mainstream before a messier, but more open and decentralized alternative can take root.

His approach leverages Meta's enormous resources, existing user base, and expertise in creating polished consumer products. However, it runs directly counter to the Web3 ethos of user ownership, decentralization, and open protocols. The Web3 community largely views Meta's efforts with deep skepticism, seeing it as an attempt by a Web2 giant to co-opt the metaverse narrative and create the ultimate "walled garden."

The coming years will determine which vision wins out: the centralized, corporation-controlled metaverse envisioned by Mark Zuckerberg, or the decentralized, user-owned metaverse championed by the Web3 community.

Frequently Asked Questions (FAQ)

Q1: Why did Facebook change its name to Meta? A1: The name change signaled a strategic pivot for the entire company. Mark Zuckerberg stated that he wants the company to be known for building the metaverse, not for its social media applications. The move was also seen as an attempt to distance the company from the numerous controversies associated with the Facebook brand.

Q2: What is Horizon Worlds? A2: Horizon Worlds is Meta's social VR platform, often considered its flagship metaverse application. It allows users with Quest headsets to create and explore virtual worlds, play games, and interact with other users' avatars. It is a centralized platform entirely controlled by Meta.

Q3: How is Meta's metaverse different from the Web3 vision of the metaverse? A3: Meta's metaverse is centralized, proprietary, and controlled by the company. The Web3 vision is for a decentralized, open, and interoperable metaverse where users truly own their digital assets as NFTs and control their own identity.

Q4: How much has Meta invested in the metaverse? A4: Meta's Reality Labs division, which is responsible for its metaverse efforts, has reported losses of over $45 billion since the end of 2020. This represents one of the largest corporate investments in a future technology in history.

Q5: What are Meta's plans for NFTs? A5: Meta has had a shifting strategy regarding NFTs. They initially launched features to display NFTs on Instagram and Facebook but later scaled them back. Their primary focus is on the sale of virtual goods within their own proprietary platform (Horizon Worlds), where they control the economics, rather than supporting open NFT standards.