A virtual world has been imagined and reimagined for ages. Today, a virtual world isn’t a single entity, but it’s shared, immersive, expansive, and even three-dimensional in the digital world. It’s called a metaverse. It promises the next level of interaction, being called the future iteration of the Internet, thriving to introduce new business models and pushing the boundaries of working, socializing, gaming, and more.
But, what exactly is the metaverse? And why should you care about it? Read to find out.
What is a Metaverse?
The word “metaverse” is derived from the Greek words “meta” and “verse” which mean beyond and universe respectively. A metaverse is an expanse of the present digital world, a virtual space connecting users in every aspect of their lives. The term first surfaced in the 1992 novel “Snow Crash” by Neal Stephenson.
It’s important to know that a metaverse is more than a form of virtual reality. What sets apart a metaverse and non-metaverse is:
- A metaverse is not confined to the imagination of its creators. Rather it’s expansive akin to the real world and infinite. A non-metaverse doesn’t provide the same level of emersion as a metaverse does.
- People from every corner of the world with access to the internet can communicate with each other in real-time in a metaverse. This seemingly “real” way of communication and co-presence is restricting in a non-metaverse.
- A metaverse is interoperable, which means a metaverse has common communication protocols, a decentralized infrastructure, and virtual gateways which connects it to non-metaverse experiences. A non-metaverse lacks these.
So far, the concept of “the” metaverse is limited to several multiverses presenting metaverse-like experiences: several metaverses with limited connectivity.
How does a Metaverse work?
A metaverse is powered by technologies, such as virtual reality, augmented reality, and blockchain. At present, a metaverse has its own economy, virtual goods, and currency that lets users engage in various economic activities, such as buying and selling virtual real estate through an account linked to their digital identity in the real world. Most precursors of a metaverse are self-regulated with rules and regulations that ensure good user behavior and integrity of a virtual world.
Users often have avatars that can be customized and that represent their digital life in the metaverse. Current metaverses are constantly evolving with new features being added by developers.
Why is everyone interested in the Metaverse?
Metaverse as a concept gained momentum in 2021, a period of online-everything, as technologies like virtual reality and blockchain received more attention, paving possibilities for a decentralized world.
According to the management consultancy McKinsey & Company, the metaverse economy could reach $5 trillion by 2030 with e-commerce, marketing, gaming, and entertainment in the metaverse becoming key sectors.
After Facebook’s rebranding to Meta, several companies, VR platforms, and projects jumped in to build their own metaverses. The idea of the metaverse is in talks in the context of entertainment and gaming, along with social networking, finance, and real estate. Even brands such as Louis Vuitton, Nike, Adidas, and Gucci and celebrities like Paris Hilton, David Guetta, Marshmello, Johnny Depp, Eminem, and Armin Van joined to be a part of this revolution.
Related: What Is Web 3.0? Why Does It Matter?
How do I get access to Metaverse?
The development of a metaverse strongly relies on the growth and development of virtual reality and augmented reality. VR is a simulated 3D world that uses haptics, gloves, body tracking suits, and more to mimic real-life interaction with the virtual world. AR, on the other hand, superimposes on top of the real world through the use of head-mounted displays, AR projectors, smart glasses, and more. Currently, you can access metaverse-like experiences such as Decentraland, Roblox, and Nvidia Omniverse, Sandbox, and Axie Infinity using a browser/mobile device and a steady internet connection.
How is cryptocurrency related to the Metaverse?
Cryptocurrencies play a crucial role in the metaverse, facilitating transactions, serving as a medium of exchange, and enabling accessibility, governance, value transfer, and digital proof of ownership. Here are two ways how:
- Digital collectibles: Cryptocurrency is used to trade, buy and sell digital collectibles, such as avatars. This helps show ownership.
- In-game economies: It acts as a medium of exchange in games, allowing players to make transactions for virtual goods and assets.
How can I earn money in a Metaverse?
You might be wondering how to unlock the power of the metaverse and earn money. Here are some ways:
- Create and sell NFTs: You can use sites such as VoxEdit to create non-fungible tokens (NFTs) and sell them on online or in-game marketplaces.
- Play-to-earn (P2E) games: P2E games such as Axie Infinity are one of the most exciting ways to earn crypto or profits. You can also build your own games and make money.
- Create a virtual store: If you have an online business, you can easily connect with your audience and let them purchase digital accessories or even real-life items from your store.
- Become an event organizer: You can consider becoming an event organizer in a metaverse by familiarizing yourself with various metaverse platforms, learning about event management in the virtual space, and networking with other organizers.
- Buy and sell digital real estate: You can choose a metaverse platform that supports the buying and selling of digital real estate, such as Sandbox, setting up an account, finding a suitable property, and making an offer. You can then monitor the market conditions to adjust your selling strategies.
Pros and cons of the Metaverse
Here are some anticipated pros and cons of the current idea of the metaverse:
Pros
Enhanced collaboration
Metaverse can present opportunities for virtual interactions, leading to collaboration and co-creation. Users can create avatars, look for communities and events, and collaborate using built-in communication tools like voice and text chat, as well as the platform’s tools, such as 3D models, animations, and interactive objects. As part of a collaboration with Roblox in May 2021, Gucci created a virtual Gucci Garden where it sold virtual items via Roblox currency.
Equal access to virtual experiences
With open standards for virtual environments and avatars, Metaverse could open up virtual experiences previously unavailable to many people because of cost, distance, or disability Companies can incorporate accessibility features, such as keyboard navigation, closed captions, and audio descriptions to make the metaverse more accessible for people with disabilities. Public-private partnerships between governments, companies, and non-profit organizations can further ensure equal access to virtual experiences for everyone and eliminate barriers to entry.
New business opportunities
Metaverse opens up new markets and customer segments with increased accessibility to collaborate irrespective of location. Companies can host trade shows, virtual events, and meetings that can help create immersive brand experiences and allow customers to interact with products. Companies can gather data and insights from such interactions to inform and improve their business strategies.
Cons
High equipment costs
Accessing the metaverse requires the usage of expensive technology, such as VR headsets, which could initially limit participation for many. Companies looking to build or invest in the metaverse are also looking at greater costs.
Security and privacy concerns
Today’s metaverse-like experiences generate and collect huge amounts of personal data, which can be vulnerable to privacy concerns, cybersecurity challenges, misuse, and unauthorized access. Such virtual environments are also prone to hacking and other forms of cyberattacks, leading to possible identity theft and compromising of sensitive information.
Metaverse fatigue
The usage of VR headsets and other equipment can lead to simulator sickness, eye strain, fatigue, and frustration. The reasons may also include intense social interaction leading to emotional exhaustion, increased screen time, overstimulation, and lack of boundaries.
Rounding Up
The metaverse doesn’t exist yet but with metaverse-like experiences, businesses are ramping up their efforts for the immersive, shared digital world. It could be the best of both worlds, physical and digital, to engage in a spatial web using blockchain, AR & VR, artificial intelligence, and more. Realizing this vision of an open world, it’s likely that the metaverse will become an integral part of our lives and the way we interact with others.