13.4 | Connectivity in Virtual Space: Metaverse, Virtual Assets, and Identity Nodes

When the economic system gradually detaches from its reliance on physical resources, geographical locations, and physical scarcity, the essence of the economy begins to be directly exposed. In the physical world, this essence is often obscured:

• People see factories, products, and transportation;
• They see land, machines, and raw materials;
• They see the physical forms of labor and capital.

Consequently, they overlook the fact that what truly operates behind these phenomena is the connectivity structure itself. With the development of digital technology and virtual space, humanity is constructing, for the first time, an economic environment almost entirely free from physical constraints—the Metaverse, virtual assets, and digital identities. In this "bit-based" world:

• Material scarcity is neutralized;
• Replication costs approach zero;
• Geographical and physical friction disappear.

Yet, the economy does not vanish; instead, it manifests in a purer form. This precisely proves that the economic system does not depend on the physical entity itself, but on the connectivity structure.

13.4.1 | The Mathematical Structure of Virtual Rent

In traditional economics, rent is explained as the usage fee for scarce physical space. However, in virtual space, this explanation fails completely. There is no true land scarcity in the Metaverse:

• Space can be generated infinitely;
• Locations can be replicated at will;
• The cost of physical occupation approaches zero.

Nonetheless, virtual rent remains a reality. From the perspective of Connectivity Economics, this is not a contradiction because:

• Rent has never been the remuneration for "land";
• Rent is the fee for traffic passing through a node.

In virtual space:

• The faster the connectivity speed;
• The higher the connectivity density;
• The more potential reachable nodes there are; ...the easier it becomes for that node to form a stable traffic convergence point.

Therefore, the essence of virtual rent is: a toll on nodes with high connectivity potential. This is a result of pure mathematical structure rather than physical consequence. The existence of virtual rent proves, in reverse, that:

• Rent does not depend on physical space;
• But rather on positional advantages within the connectivity topology.

13.4.2 | The Infinite Possession of Virtual Commodities

Virtual commodities are almost impossible to explain correctly within the framework of traditional economics. The reason is simple:

• They have no marginal production cost;
• They have no physical scarcity;
• Theoretically, they can be infinitely replicated.

According to the logic of labor value or scarcity value, they "should not possess value." Yet, the reality is quite the opposite. From the perspective of Connectivity Economics, the value of a virtual commodity does not come from the content itself, but from the connectivity function it carries. The core characteristics of virtual commodities are:

• They serve as an interface for humans to enter virtual systems;
• They are credentials for admission within a rule-based space;
• They are intermediaries for the connection between humans and the virtual world.

Therefore:

• Virtual commodities can be possessed infinitely;
• But every "use" signifies an act of connectivity;
• Connectivity itself possesses cost and structural value.

The exchange value of virtual commodities originates from: reducing the cost for humans to establish a connection with the virtual system. This is why, even if the content remains unchanged and is infinitely replicated, virtual commodities can still create sustainable value through high-frequency turnover without adding new content.

13.4.3 | Identity Nodes and the Economy of Digital Persona

When the economic system enters the stage of pure connectivity structure, the role of humans also undergoes a fundamental change. In virtual space, humans are no longer merely biological individuals but exist in the form of identity nodes. A digital persona possesses several key characteristics:

• It can exist across platforms;
• It can accumulate connectivity history;
• It can be identified and invoked by the system;
• It can become part of a stable connectivity structure.

This means:

• The human themselves becomes a long-standing connectivity node;
• Their value no longer depends on a single transaction;
• But rather on their connectivity quality and structural position within the network.

In such a system:

• Value no longer comes solely from labor;
• But from the connectivity capability carried by the identity.

The connection between humans and objects (including virtual objects):

• Can be infinitely replicated;
• But every connection involves a structural cost;
• These costs collectively determine the economic value of the digital persona.

This clearly demonstrates that when the economy becomes purely digital and purely structural, value becomes more visible than in the physical era.

Virtual space is not a "fantasized escape" from the real economy, but a structural manifestation of the economic essence. Here, connectivity is no longer obscured by matter, and the economy is presented for the first time as it truly is.