Metaverse has emerged as a global phenomenon since the social media giant Facebook Inc. announced to change its name to Meta Platform. Facebook has changed the company name to diversify the way they’ll be moving forward. Mark Zuckerberg and Co see it as the future of the internet. Tech giants are ushering in the next version of the internet and it has become a buzzword in the tech world. But do you know what it means?
We will be going through the core of metaverse and how it will change our lives in the future. Is it just about VR glasses and playing games? Is it completely overhyped already? What’s the future of it?
What is Metaverse?
Metaverse is quite a broad term. But generally, it refers to virtual spaces that allow people to interact in a more immersive way than a traditional website. This could be through the use of virtual reality by wearing a VR set. People also use the term metaverse to refer to virtual environments where you have an avatar. Or in simple words, having a cartoon person representing a human being.
Hitting into the textbook history of the metaverse, science fiction writer Neal Stephenson coined the term “metaverse” in his 1992 book Snow Crash. The writer described the idea of metaverse by using it to mean a computer-generated universe. It’s also tied to the development of Web3.0, which some believe will be the next chapter of the internet’s existence. One that is built on blockchains. Theoretically, this will democratize access and power and weaken the grip of the biggest tech companies.
Based on what we have described the idea of metaverse so far, the concept is not really new. Back in the early 2000s, there were a lot of forerunners to the metaverse, including Second Life and Habbo Hotel. They’ve dropped off a lot of people’s radars since then but both are still going — Second Life still has 200,000 daily active users.
Metaverse a Global Sensation
This was back then when there was no buzz of the metaverse. Why do we think the metaverse will take off this time? Now, we’re talking about metaverse as a global sensation. More tech companies are owning the metaverse space and are investing billions of dollars. Mark Zuckerberg is all in, while Microsoft wants to build the enterprise metaverse.
On the other side, online multiplayer games like Fortnite, Minecraft, which is owned by Microsoft, and Roblox have already made social gaming a mainstream phenomenon. We believe that this is the building block for the metaverse universe and we’ll see more platforms from the gaming space work on metaverse.
Some game developers believe that Roblox could be the most powerful metaverse platform of the future. Minecraft, meanwhile, runs on Hadean cloud software which can scale up to thousands of users per world. Well, at such an early stage we could not perceive the idea of the success of one company in it. But we can see the direction and that’s where companies Roblox are working hard to compete against tech giants like Microsoft and Zuckerberg’s Metaverse.
In a more technical world, the computing power to scale virtual reality to a massive scale is only now emerging. For instance, companies like Hadean and Improbable, which specialize in creating large-scale distributed computing can get 10,000 players on the same server simultaneously.
Industries merging in Metaverse
Cryptocurrencies and non-fungible tokens, also known as NFTs, will be one of the biggest drivers of the metaverse. Both the digital coins and NFTs make it easier to buy and sell things inside the metaverse, opening up commercial opportunities.
But more importantly, these exchangeable tokens will also eventually make it possible to move your virtual identity and goods between different metaverse worlds. For instance, you will be able to use gaming accessories across different metaverse platforms. Say, you take your pixelated sword from a Roblox game and turn it into a powerful gun in Fortnite.
This is when the metaverse becomes truly “meta” and you can hop around seamlessly between platforms. Just like in the way that sci-fi novels like Snow Crash and Ready Player One imagine. Think of it like that moment in the 1990s when mobile phones started allowing people to text each other. And, suddenly that exploded beyond anyone’s expectations.
We already have VR products in the market such as VR glasses. With the use of this technology, users can easily wear virtual reality glasses. VR glasses give the user the sensation of being there in front of a companion, even though they are physically separated and only linked over the internet.
Is the metaverse just about playing video games? Or wearing VR glasses. Well, for now, the concept of the metaverse is more or less revolving around the gaming world. But this is much bigger and broader. NFT world is one example of a metaverse where people will explore their art. Whereas, some people will take this as trading.
Future of metaverse?
Being more futuristic, corporations will be holding meetings via their avatars. Civil engineering models will be made virtually via Augmented reality. While the concept of 3D advertisement will get bigger with metaverse evolution. Imagine studying, working, interacting, attending concerts, earning money, and playing games in an online realm that is both an extension and a fusion of the real world.
Besides, meetings with clients, digital entertainment, work training, and even online study are all expected to be available online in the future, thanks to the Metaverse. This is why so many businesses are investing in it: the network’s ability to change the world is undeniable. So, we’re talking about a much bigger industry with ever ending scope.
So far, we have discussed the scopes of the metaverse and what we can achieve through this. However, it’ll have a few cons. Lawyers warn that the metaverse will see disputes. It may occur over intellectual property and ownership, data protection, content licensing as well as risks around crypto-assets.
Many lawsuits will have to be fought to establish the rules. In September 2021, Roblox settled a lawsuit with the US National Music Publishers Association which paves the way for artists to be able to debut their music in the metaverse.
What is there for Investors?
For investors, the biggest risk is figuring out which companies really know how to build compelling metaverse companies. The general perception is that big techs will lead the race in the metaverse. But we’ve already experienced how small enterprises can surprise big companies in the tech world. Talking about it, companies like Twitch and Snapchat – to name a couple – can be serious competition to Facebook and Microsoft. And, in many areas, they are way ahead of these two giants as we stand now.
Investing in the metaverse space is yet to get noticed. In April US games company Epic raised a $1 billion funding round led by Sony. A couple of months ago, The Sandbox, a games studio owned by Hong Kong VC Animoca Brands, raised a $93m Series B funding round led by SoftBank.
Well, it will take a bit of time. The future of metaverse in the short- and mid-long term will revolve around gaming, cryptocurrency, and NFTs.
Would you prefer to live in a Metaverse like this? Does it pique your interest?
