Simply Put: What is the Metaverse and Why Should You Care?
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Mar 29, 2023
There are various opinions about what the Metaverse is and what it implies for humanity. While some consider the Metaverse to be a game or some sort of virtual reality escapism, in fact it is much more.
When Mark Zuckerberg, founder and director of Meta (Facebook), announced the rebranding of his company, he mentioned that the Metaverse would be something like an "embodied internet," meaning that users would no longer passively consume information, but instead interact with data and 3D objects in real time while performing everyday activities like working, learning, shopping and spending time with others. The metaverse is linked to the emerging concept of Web 3.0, a decentralized, open source version of the Internet.
Simply Put: The metaverse is a virtual 3D space where users, companies and creators meet to interact with one another, manage digital objects and perform various activities.
Why is the Metaverse going to make an impact?
According to research by Grayscale, a leading digital currency investment manager, the metaverse has the potential to become a $1 trillion annual revenue opportunity combining the niches of advertising, digital events, e-commerce, gaming, hardware, etc.
Although it’s not fully developed yet and there’s still work to be done regarding the completion of the VR environment, it has already presented itself as fertile ground for all those who wish to expand their business in that way or invest in the technology.
Infographic showcasing Metaverse user statistics with a purple and blue gradient background. The statistics include: 3.59 billion users on platforms created by Meta, 400 million monthly active users in 2022, and a prediction that 25% of people will spend an hour or more each day in the Metaverse by 2026. A person wearing a VR headset is shown on the right, with hands raised as if interacting with the virtual environment.
What is the influence of NFTs in the metaverse?
NFTs (non-fungible tokens) have already been widely integrated into the metaverse. They behave just like any other virtual asset and they include avatars, plots of land, wearables, equipment, digital art, and so on.
NFTs as assets and crypto tokens as native currencies will be a defining feature of the metaverse, enabling users to own and manage valuable digital properties, and do commercial transactions with others.
Who’s Investing in the Metaverse?
Some well-known vertical market brands are already investing in the virtual space. These include Adidas, Gucci and Nike which have already opened their stores in the current metaverse, selling their products as NFT assets. Normally, these assets can be interacted with and redeemed in a physical store for their physical versions.
Another example of businesses that are venturing into this world are online gaming companies. They turned to metaverse-friendly products to allow their users the management of digital tokens.
In addition to the cases just mentioned, technological giants such as Google and Microsoft are also investing billions of dollars in the development of the metaverse.
How Will the Metaverse Influence our Future?
Developing and implementing NTFs in the metaverse requires expertise in a combination of technologies such as blockchain, VR, AR (augmented reality), and AI. This will surely have an effect on how other immersive user experiences will be designed in the time to come.
The metaverse NFT marketplace is projected to peak soon after launch – brands of all sizes will be there, eager to meet new potential audiences.
Game-based metaverse solutions can provide modern gamers with a way to turn their hobby into passive income.
Metaverse 3D space development is also expected to take off without delay. This includes providing digital venues for real-world events – you can be at the office without actually leaving home and increasing our carbon footprint.
Virtual real estate is already picking up steam as the metaverse is expected to be a hot revenue-generating prospect in the future, with ventures looking for ideal plots on which to raise their storefronts.
Metaverse integration for existing Web2 applications is also predicted to be on the rise as they provide a more accessible entry point for many users. Data and API integration services will trend in the B2B domain.
What Metaverse Solutions are Currently Popular?
Decentraland is a 3D virtual world browser-based platform. Users may buy virtual plots of land in the platform as NFTs via the mana cryptocurrency, which uses the Ethereum blockchain.
The Sandbox is a virtual world where players can build, own, and monetize their gaming experiences in the Ethereum blockchain. It has its own token, the sand, for use in transactions and interactions.
Polka City, self-defined as the world’s first AR NFT multichain social platform and video game, allows users to invest in virtual assets in the form of a virtual city. It’s a contract-based metaverse project which also allows #DeFi applications.
What are the Layers of Metaverse Development?
Infrastructure: This will require cutting-edge hardware, software and data storage technologies. Those may include WiFi, 5G and cloud storage.
Human Interface: To access the metaverse and experience digital life, people can use their mobile, tablet, desktop or even wearable VR/AR devices – these last ones allow voice and gesture inputs for better experiences.
Decentralization: Metaverse platforms are decentralized, with ownership of virtual land and other assets inside them belonging to their respective owners. What governs these spaces is not a central authority, but community referendums.
Spatial Computing: Modern technological solutions like VR, AR, AI, 3D software applications, user-end interfaces and digital maps are used to create a decentralized metaverse.
Creator Economy: Metaverse applications are user-based, with a creator economy expressed through virtual stores and exclusive promotional spaces.
Discovery: Businesses can discover or be a part of the Web3 metaverse experience through internet browsers, social media networks, platform-exclusive applications and ad networks. This opens new avenues for startups that work with Web3.
Would you Like to Learn More or Invest in the Metaverse?
If you are excited about the possibility of developing a metaverse product or branching out virtually, the opportunities are endless! We can provide advice and help you kickstart your metaverse business with the help of our blockchain and Web3 experts.
