What is the metaverse?
Metaverse, is a virtual world where you will create your own avatars, to co-exist, socialize, work, play and trade value with one another in the virtual world.
The next iteration of the intern
The parallel between the metaverse and the internet are many, technology developers have not only framed the metaverse as a proxy of the internet, but its logical progression. Meta’s CEO Mark Zuckerberg described it as an embodied internet that you’re inside of in 3D rather than just staring at a 2D screen.
For the average person, the mere conception of the metaverse seems rather esoteric and difficult to grasp.
In this article, we will attempt to answer the following questions:
- What is the Metaverse and why should we care; and,
- A brief historical timeline, technologies and market opportunity.
Metaverse defined: Blurring the lines between physical and digital reality
The idea of the metaverse reached mainstream consciousness recently but the notion has been developing for several decades. If you have been following this development, then you will realize that several definitions of the metaverse exist, perhaps one of the best-articulated representation of the metaverse was proposed by the Acceleration Studies Foundation, defining the metaverse as:
The convergence of 1) virtually-enhanced physical reality, and 2) physically-persistent virtual reality. It is a fusion of both, while allowing users to experience it as either”.
The metaverse is a convoluted concept; introduced by Neal Stephenson in his sci-fi novel called the Snow Crash, he described it as a virtual reality-based iteration of the internet. The characters in the novel create digital avatars of themselves to explore the virtual worlds as a way to escape the dystopian reality. Similarly, venture capitalist Matthew Ball described it as a persistent and interconnected network of 3D virtual worlds, a true gateway for our online experiences that will underpin the physical world. Ball believes that the metaverse will not replace the internet but will be a ‘quasi-successor state of the internet, meaning it will transform the internet into a 3D experience. Like Zuckerberg’s definition, the venture capitalists also placed everyone inside a 3D version of the internet….yes, you read that right -a digital version of you will exist inside the internet, mirroring your physical reality.
The metaverse timeline
Source: https://www.cnbctv18.com/technology/explained-the-history-of-metaverse-12015212.htm
It’s important to cite the contribution made by many innovators, writers, and game developers. Starting with Neal Stephenson’s definition of the metaverse in 1989 to Philip Rosendale’s ‘Second Life’, and movies like Ready Player One have all existed long before Facebook announced its rebranding to Meta. However, only after Mark Zuckerberg’s rebranding announcement did the metaverse become the tech industry’s biggest buzz word as more big tech companies jumped the bandwagon to develop the next iteration of the internet.
Hardware is key to the metaverse.
An immersive experience requires VR/AR headsets such as the Oculus Quest, Microsoft Hololens, Magic Leap to enter the metaverse. Apple is rumoured to release their AR/VR headsets sometime this year, while other companies like Mojo Vision are developing augmented reality contact lenses for metaverse applications. In addition, The metaverse will be powered by five key technologies, Virtual reality (VR), Artificial Intelligence (AI), Augmented reality (AR), 5G, and Web3 (blockchain).
NFTs will fuel the digital economy.
The Metaverse will be comparably decentralized, meaning there will be no controlling party, a single entity cannot control the metaverse. There will be multiple metaverses or multiverses that will be powered by interoperability. The idea of interoperability for the ecosystem is imperative because this feature will allow the blockchain ecosystems to interact, share arbitrary data, and enable cross-chain social connection. According to Price Water Coopers, PwC, cryptocurrency, and NFTs will underpin value exchange in the metaverse. Users will facilitate business transactions by enabling the interchange of goods & services through cryptocurrency. The upshot is that NFTs can be used to digitize the rights to unique assets within the virtual worlds. Think of NFTs as the bridge to the metaverse that will facilitate identity, community, social experiences and commerce. NFTs can also enable the exchange of in-game assets, for example Somnium Space is an open metaverse platform that is powered by Ethereum and Solana blockchains where users can buy and sell land, and monetize on digital assets via NFTs.
A trillion-dollar opportunity
The cryptocurrency investment firm, Grayscale, released a report late November 2021, which explained that gaming is just one market segment for the metaverse ecosystem, but the virtual worlds will extend far beyond gaming and play. The opportunities in the metaverse play also include marketing and advertising, social commerce, digital events, hardware, and developer/creator monetization will generate a trillion dollar revenue opportunity.
Source:https://grayscale.com/wp-content/uploads/2021/11/Grayscale_Metaverse_Report_Nov2021.pdf
Citibank also recently released a report entitled “Metaverse and Money”, that predicts metaverse to become a $8 Trillion dollar business across several verticals including concerts and entertainment, commerce, education, training, and more. The bank predicted that over 5 billion users will be logged into the virtual worlds by 2030. The virtual worlds will encapsulate, and integrate several forms of money which will include fiat money, in-game tokens, stablecoin, and central bank currencies (CBDCs).
The metaverse is still a decade away from becoming a reality, several technologies, companies and innovators will converge in perfect harmony to develop the next version of the internet.
