Propelled in the eyes of the general public by Mark Zuckerberg and Meta, formerly Facebook, the term “metaverse” is nevertheless mostly misunderstood. What are metavers and how do they work? Do these virtual worlds really have a future? Discover the answers to all your questions about the metaverse.
What is the metaverse?
Definition of the metaverse
The metaverse, or metavers in French, is a fictional environment in 3D, interactive and immersiveforming a combination of the real world and virtual worlds. Inside, individuals can embody avatars and interact with other people or with digital objects.
Born from the contraction of the words meta (meaning “beyond”) and universe, the metaverse described by some as a digital revolution a major digital revolution of the next ten years.
The emergence of the metaverse participates in the transition from Web2 to Web3. If Web1 offered access to information, Web2 brought interaction with social networks, then the Web3 brings immersivity – and the real ownership of its assets – to the web. with these new virtual environments in which one feels fully present.
As an example, a metaverse can be assimilated to a multiplayer online video gameIt is a multiplayer online video game that brings together several different game universes in which it is possible to navigate. Its most accomplished representation was offered to us in the film Ready Player One by Steven Spielberg, dating from 2018.
Note however that there are two types of metavers Those that are based on blockchain and non-fungible tokens (NFT), which could be called “crypto-metaverse” and those that are not. These are the “VR/AR metaverse” and are simply virtual worlds equivalent to video games.
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The history of the metaverse
Although we have been hearing a lot about the metaverse for a few months now, the concept is not new. In 1992, Neal Stephenson was already talking about it in Snow Crash, a book that evokes the life of a crazy entrepreneur who decided to create a virtual world in which he could control the minds of individuals.
Ignored as technically unfeasible at the time, metaverses have really materialized with the advent of new technologiesand in particular of the augmented reality. Allowing to superimpose any image to the universe which surrounds us, this one creates the illusion that the real and the virtual coexist on the same level.
Illustration of the use of a VR headset to enter the metaverse
One detail was still missing to conceptualize perfectly the metaverse. In these parallel worlds where digital objects have a real value, the blockchain and more particularly non-fungible tokens (NFT) were the missing pieces that fit perfectly into this puzzle.
The NFTs allow uniqueness and real ownership of digital assets. But above all, they open a new horizon for these virtual worlds: interoperability. Digital assets can be transferred from one metaverse to another and retain their value.
Finally, the key date to remember in the history of the metaverse is the October 28, 2021. With Mark Zuckerberg’s announcement to rename the Facebook group to “Meta” and to invest massively in the creation of its metaverse, the general public then becomes aware of the potential of these virtual worlds.
Learn more about the metaverse in our full video:
What are the main metavers?
At the time of writing, there are already well-developed metavers in which it is possible to venture. Here is a non-exhaustive list of the most popular metavers:
- Otherdeed for Otherside;
- NFT Worlds;
- Arcade Land;
- Metroverse;
- The SandBox;
- Decentraland;
- World Horizon by Meta.
Many other virtual worlds are currently in development. Most of the video game, social network and tech players are planning to launch their metavers, like Epic Games (creator of Fortnite), Apple, Roblox, Alibaba, TikTok, Reddit, VR Chat, and even Microsoft.
Overview of the world map of The SandBox
On the year 2022, trading volumes in metaverses reached $1.29 billion according to data from aggregator Dune. Otherdeed, the Otherside game developed by Yuga Labs, leads the way with 73.8% of the total funds flowing into these virtual worlds. It is followed by NFT Worlds at 7.9% and The Sandbox at 5.5%.
Read more – The Sandbox (SAND), a Play to Earn metaverse where everything is tokenized.
Dive into the Metaverse
What is the purpose of the metaverse?
In concrete terms, the metaverse opens up an immense field of possibilities, limited only to the imagination of developers, the funds of investors and the resources of users. As Spielberg presents perfectly in Ready Player One, all you need is a computer, an Internet connection and possibly a virtual reality headset to enter these digital worlds.
At the time of writing, the main uses of the metaverse revolve around gaming, events and social relations. As an example, Mark Zuckerberg and Meta have invested about 10 billion dollars in this technology and in particular to develop a world to work for companies :
Overview of the Meta Horizon Workroom metaverse
Since Zuckerberg’s announcement, there is no end to the number of companies that are choosing to get into the metaverse. They are turning to already well-developed solutions, such as Decentraland or The Sandbox, or choosing to develop their own platforms. Here is a non-exhaustive list of major brands with a foot in the metaverse: – Carrefour and Groupe Casino: giants of the retail industry;
- Square Enix, Ubisoft and Epic Games: video game studios;
- Axa USA, JP Morgan and HSBC: banks;
- Gucci and Yves Saint Laurent: luxury brands;
- Nike and Adidas: ready-to-wear;
- Apple, Samsung and HTC: Tech giants;
- Snoop Dogg, Slipknot and mk2: artists;
- Fiat and Ford: the automobile.
Let us take the example of the companies of the large distribution, they can consider to offer immersive and playful virtual experiences to their customers. As a result, they would be able to get coupons to buy products in the real world.
For artists, such as musicians for example: it is possible to organize a virtual concert in the metaverse where each fan can receive a souvenir t-shirt of the event (tokenized as NFT) reusable in other metavers. He could also attend the concert, wear his Gucci sweatshirt and carry his Louis Vuitton bag as an NFT.
In the future, some experts believe that metavers will bring together all our daily activities: shopping, cultivating, working, participating in cultural activities, relaxing, having fun, etc. However, copying the real world is not the final goal. Everyone will be able to shape their own world in their own image.
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What is the potential of metavers?
According to a Bloomberg Intelligence report, the annual metaverse market could be worth $800 billion by 2024. In parallel, the American bank Morgan Stanley speaks of a market of 8,000 billion dollars. For comparison, the video game market is worth about $180 billion in 2021. While these figures seem extremely exaggerated, they do indicate an enthusiasm for this growing industry.
The growth potential of augmented and virtual reality technologies is also exponential. PWC predicts a growth of 39.6 billion in 2019 to €1,280 billion in 2030 (+ 3 000%).
The 90 companies that build the metaverse
Despite a huge potential and the interest of giants like Microsoft, Meta or Apple, the metaverse is struggling to convince users. A subject of mockery taken up everywhere in the media, pointing the finger at Decentraland and The Sandbox for their low attendance. While these numbers are wrong and the reality is more like 100 to 200 times more, it’s still very small compared to the capitalization of these projects in the cryptocurrency market.
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FAQ about metaverses
What does metaverse mean?
The metaverse is a word derived from the contraction of the words meta and universe. This concept represents virtual worlds based on blockchain technology and NFTs.
How to enter the metaverse?
To enter the metaverse, you have to connect to one of these virtual worlds (The SandBox, Decentraland, etc.). Sometimes it is necessary to have a virtual reality headset to enhance immersion.
What is the purpose of the metaverse?
Eventually, the metaverse could allow to perform everyday actions (shopping, culture, work, cultural activities, relaxation, fun) or to build a world as we imagine it.
What are the dangers of the metaverse?
The use of metavers can lead to risks of isolation, psychological dangers that are still little known, as well as risks of personal data leakage.
How to invest in the metaverse?
This article was originally written by Blandine Narozniak and updated on 16 February 2023 by Mathew Williams.
As a journalist for bitcoinlinux, I strive to dissect every detail of the exciting world of crypto-currencies and make it accessible and understandable to as many people as possible.
Mathew Williams
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