High Fidelity Raises $35 Million for a VR Blockchain Project
High Fidelity, the startup behind Second Life, has now raised $35 million for a blockchain-based virtual reality project that aims to connect people through simulated worlds that are user-generated. In the latest funding round, the startup received a $20 million injection of funds from the blockchain investment fund Galaxy EOS Ecosystem Fund that is associated with hedge funder manager and former Wall Street legend Mike Novogratz. Other investment funds that have put money into the project include IDG Capital Partners, Blockchain Capital, Vulcan Capital, Breyer Capital and IDG Capital Partners.
The High Fidelity VR platform is still in its beta version with the company currently directing its efforts towards position-based structures.
High Fidelity combines two of the most advanced emerging technologies today-virtual reality and blockchain-to create a social network that will connect virtual worlds that the users generate themselves and enable people to meet in virtual reality. Already, the company has put in a lot of investment in the development of the blockchain aspect of the High Fidelity project.
High Fidelity is also planning on rolling out a cryptocurrency, the High Fidelity Coin, a stablecoin cryptocurrency that will be pegged to the dollar although it will not offer an investment opportunity for crypto speculators.
The platform will enable users to own the virtual products that they buy. The platform will also have a Digital Asset Registry that will contain a register of all users and the associated assets that they own. There will also be a Virtual Reality Blockchain Alliance (VRBA) which will allow for portability, making it possible for users to move their purchases and avatars between different platforms. Through this platform, users will be able to create and test various kinds of experimental frameworks in virtual reality in a structured blockchain-powered environment.
Virtual reality is expected to be big in the next decade, reaching up to 1 billion people according to High Fidelity CEO Philip Rosedale. The industry will generate up to 1 trillion in virtual products and services.
Given this scale of growth and development, there will be a need for virtual reality to be decentralized in order to meet the goals and challenges of the future and this might require the application of blockchain technology in future VR projects. High Fidelity is already a trendsetter in this regard.
With its foray into virtual reality, High Fidelity is sort of a latecomer in an industry already dominated by giants such as Facebook and Google but the company believes the likes of Facebook will in the future be bottlenecked with privacy issues which will become more pronounced as more users embrace virtual reality a decade or so from now.
High Fidelity also believes its decentralized blockchain-powered approach can fill up the opportunity created by Facebook’s centralized approach and focus on advertising as their primary revenue model as opposed to High Fidelity’s virtual products.
With the latest round of funding, High Fidelity has now raised $70 million for its virtual reality blockchain project.