Current state and future projections of the industry

In recent times, as computers and smartphones become more powerful and internet access becomes widespread, the digital landscape is rapidly evolving towards a 3D avatar-driven environment. Various industries, including entertainment, content creation, the adult sector, and retail clothing, are embracing 3D avatars. Notably, a growing number of individuals are venturing into influencer careers as VR content creators, often referred to as Vtubers. As discussed in the preceding section, our primary motivation in establishing avatar generation infrastructure is to align with this overarching trend, ultimately leading to the emergence of the metaverse. However, our immediate focus is on providing solutions tailored to the unique requirements of niche 3D avatar applications while concurrently emphasizing Cymorph's foundational infrastructure role.

The main requirements of such 3D avatar creator infrastructure could be summed up under 3 categories:

1. Scalable and User-Friendly Software:

Prior to the emergence of generative AI, crafting art was a laborious task. However, recent successes like Dall-E and Midjourney have demonstrated AI's capacity to produce art akin to human creations. While generative AI has conquered 2D art, the realm of 3D avatar generation remains untapped. By harnessing AI algorithms for instant 3D avatar creation, we achieve the scalability essential for future software.

2. Interoperability:

Achieving interoperability involves supporting different blockchain networks and implementing NFT technology alongside decentralized storage solutions for avatar preservation. Additionally, the development of user-friendly API and SDK systems for Cymorph integrators streamlines interoperability, as projects integrating Cymorph can seamlessly partake in a universal avatar ecosystem.

3. Accessibility and Affordability:

To ensure accessibility and affordability, we adopt a freemium software access model, granting universal availability. This approach, complemented by intricate royalty mechanisms, encourages widespread adoption while keeping costs low.

4. Decentralization

A robust infrastructure, as outlined in this whitepaper, must prioritize decentralization to prevent any single entity from exercising absolute control over metaverse interactions. Ideally, the envisioned avatar generation infrastructure should be community-driven. Therefore, the establishment of a Cymorph DAO (Decentralized Autonomous Organization) is a pivotal step in our roadmap.

This approach to 3D avatar creation emphasizes simplicity, scalability, and inclusivity, addressing the changing needs of the metaverse. We have structured Cymorph to meet these four essential criteria, enabling us to provide AI-powered avatar generation to early adopters in the 3D virtual world.

In the current landscape, the metaverse category on Coin Market Cap boasts a market capitalization of approximately $10 billion. Industry analysts and gaming professionals anticipate this figure could surge to an impressive $50 billion in the near future and 1 trillion in the far future. This optimism is grounded in the fact that the traditional gaming market already commands a $200 billion market cap, and the emergence of blockchain gaming has added a layer of engagement by enabling players to own and trade in-game assets. Consequently, given enough time, achieving a $1 trillion market cap appears within reach.

Hence, the demand for a swift, scalable, cost-effective, and interoperable 3D avatar generation tool is paramount for the industry's evolution. This tool must facilitate rapid avatar creation and decentralized storage, while also ensuring compatibility with major blockchains and seamless avatar mobility across diverse gaming experiences.

As highlighted earlier in this section, numerous industries are exploring the applications of 3D avatars. However, creating avatars using current technologies is time-consuming and demands specialized skills and designers. The development of AI-based interoperable avatar generation is not only crucial for the gaming sector but also extends its significance to e-commerce, shopping, VR content, entertainment, and the adult industry. We will delve into these specific use cases in the Utilities section of this whitepaper.

Cymorph, functioning as a 3D avatar ecosystem, has the capability to support existing avatar applications and adapt to upcoming use cases. Our goal is to seamlessly integrate diverse applications and games, spanning Web 2.0 and Web 3.0 environments. In doing so, we can establish Cymorph as a foundational component within the evolving metaverse landscape.

In the next chapter, we will delve into the ultimate goal of our project, summarizing what we have discussed in the preceding sections.