The Metaverse
The Metaverse. We have been hearing a lot about The Metaverse lately, in fact, it is all over the internet.
Is this something special or just another technical jargon that is thrown for the sake of marketing or hype like many crypto projects out there?
Small disclosure.
The content in this article is for educational purposes. Views expressed are purely personal and do not reflect any organization’s view or thoughts that I may be affiliated or associated with. Please do your own due diligence.
What is Metaverse?
It’s a combination of two words Meta + Verse. Meta comes from the Greek word meta which means “after” and Verse refers to the universe.
The word Metaverse was first coined in the year 1992 by Neal Stephenson in his novel Snow Crash.
Definition of Metaverse
There are many definitions of the metaverse, if I have to put it in my own words then it would be :
An experience created on the open and decentralized web that leverages Web 3.0, blockchain, and mixed reality where community builds values that allow them to innovate and socialize in the virtual world using their personalized and transferable digital identities.
Let me break it down and explain some of the key terms that I have used in my definition. I call it “an experience”, indeed it is an experience because it co-exists with the real world. Augmented Reality(AR) provides an interactive experience of the real and virtual world environments. “Open and decentralized”, there is not a single person/organization that controls Metaverse.
Anyone can participate in Metaverse. Community is the centerpiece of Metaverse and it is completely governed by the community using DAO. It allows artists, community members to own/rent a piece of land in Metaverse just like how you do in the real world. It allows users to have their own identity aka “Avatars”. Everything in Metaverse is NFT(Non Fungible Token) and ownership can be verified in Blockchain.
Now that we have covered “What is Metaverse?” I feel it is equally important to cover “What is NOT Metaverse?”.
What is NOT Metaverse?
Facebook has recently rebranded itself as Meta. Facebook already has a strong user base across its suite of products such as Messenger, Instagram, Whatsapp, and Facebook social media app so why do they even have to do the rebranding?
In my opinion, Metaverse is the next big thing and Facebook(or as I publish this article I should say Meta ) does recognize that fact and hence it is preparing to fuel the company’s growth for the next decade ahead of us. With Facebook’s rebranding as Meta, it is a very clear strategy; to take the user experience to next level.
In near future, Facebook(again I should start to refer to it as Meta :) ) is going to launch its own Metaverse.
But wait, it is still not clear if “Meta” is “Metaverse”? or “Meta” is building “Metaverse”?
Let’s recap what we studied back in our school days. We studied, there are multiple universes that co-exist. Our universe where we live is but one in an unimaginably massive ocean of universe called “the multiverse”.
“The Multiverse”, that makes it clear that “Metaverse” by “Meta” would be one of many Metaverse(s) in the future. As we speak there is already some popular Metaverse out there for you to experience such as Decentraland, The Sandbox.
Multiple Metaverse projects would co-exist, offering unique experiences to the community. It would be interesting if you would be able to walk from one Metaverse to another Metaverse and come back. It would be truly remarkable if we can do that. Looking forward to such an experience.
Key technologies that power “The Metaverse”
- Mixed Reality
- Gaming
- Web3
- Blockchain
Mixed Reality
Most people have been already experiencing Virtual Reality(VR) in applications like Instagram, TikTok, etc. Many users even got addicted to Augmented Reality(AR) powered games such as Pokemon GO! when it was first launched. Devices like Oculus started to gain popularity for entertainment and gaming.
So what’s new in Mixed reality?
Technology keeps getting better every day. Mixed Reality(MR) combines elements of both AR and VR, real-world and digital objects interaction. Mixed Reality is the next wave in computing and it is going mainstream even more with Metaverse. It takes user experiences to the next level with a combination of truly stunning holographic representations of people and high-fidelity holographic 3D models and the real world around them. It blends physical and digital worlds, unlocking machine and intuitive 3D human, computer, and environmental interactions.
Shopping malls in your locality may not allow you to have your pet around when you go shopping. Think how cool it would be to have your pet right with you when your shop in your favorite luxury brands shop in Metaverse?
Or you could put up that limited-edition dress on yourself and experience if it looks good on you when you wear?
Gaming
What does Gaming have to do with Metaverse?
To put some facts, the global gaming market is estimated to be USD 545.98 billion. Gaming is serious business and no doubt serious innovation. Don’t be surprised if you hear gamers socializing in Metaverse and playing their favorite competitive games involving money at stake for wins and losses.
Games provide the perfect arena for innovation and cutting age real-time experience to users. Many gamers like to have their own identity when they play their favorite games. They want their avatars to look fancy, equipped with the most advanced weapons which increase their chance of winning. All this is possible in Metaverse and it’s mind-blowing.
You can even try playing some of these games here online and earn rewards.
Web3
Wait, are we not in Web 2.0?
Why is everyone talking about Web3?
Web2.0 has been largely driven by large corporations. Banks, E-commerce, Telecommunication, Insurance and you name it, it has been run by some well-known institutions whom we “trusted” over the years.
Whenever you wanted to buy something online you probably browsed through amazon.com. When you wanted to chat with your friend, you probably used Whatsapp or Telegram? You wanted to keep your money safe, you probably deposited it in some trusted bank and used internet banking to do the transaction.
So what’s wrong with Web2.0?
Well, technically nothing wrong with Web2.0. It’s just the way we have been used to. But is there any better way?
In my opinion, it depends on how you see it.
The most important point to understand here is “trust”. When we trust a person or an organization, it does come with “risk”. Everything may go well or you incur losses.
Web3 is the new iteration of the World Wide Web, that incorporates decentralization. It promotes Peer-To-Peer(P2P) technology and transparency.
How web3 might change your life?
You will be able to fully control your wealth and transfer/receive without any intermediary organization. Do you want to borrow or lend money? You can connect to a decentralized service and quickly have your loan sanctioned according to rules defined by the community. No extra commission or hidden charges.
We should not forget, “with power comes great responsibility”. Always do your own due diligence.
Blockchain
You may question me, can the Metaverse be without Blockchain? My answer is an absolute Yes!
But, will that be a good option? My answer is strong NO!
But Why? Because you lose control of your asset ownership.
Still but why no control on “ownership”? Because data and your proof of ownership are not publicly available and there is a high probability it can be mutated when stored in centralized databases.
Alright, the above discussion makes it very clear that Blockchain is managed by a peer-to-peer network for use as a publicly distributed ledger. In simple words, Blockchain is a decentralized database. Data stored in the blockchain is publicly available. Anytime, anyone can verify the data. Data stored in Blockchain is immutable and secured by Cryptographic Algorithms.
All popular public Blockchains provide protocols such as NFT(Non Fungible Token). It’s basically a Smart Contract(a program that runs on the blockchain). In Metaverse pretty much everything is NFT and hence you can track/transfer the ownership. If we make reference to Ethereum Blockchain, ERC-721 is the standard reference contract for NFT. You can deploy the smart contract and interact with it to own assets in Metaverse.
I have covered NFTs in more detail here in my previous article.
Is Metaverse just all about digital and imaginary?
It is often misunderstood that NFTs or Metaverse are all for people glued to computer screens with those large glasses on. If you think the same then I must correct you, it’s way beyond that.
In the real world, it is all about community building and engagement. Companies are offering everything from physical to digital items to engage their customers.
How cool it would be if you’re a strong supporter of the brand Adidas, you buy many of its limited-edition shoes or apparel, and now you’re able to brag or wear the same dress in your digital avatar in one of the Music concerts hosted in Metaverse?
Bored Ape Yacht Club(BAYC) is no ordinary project. It is now worth over USD 4.5 Billion Dollars. Launched on April 30th, 2021 by Yuga Labs, is a collection of 10,000 unique NFT digital collectible ap avatars. Each Bored Ape is randomly generated from over 170 possible traits, which includes expressions, headwear, clothing, and much more. Some apes have rarer traits than others and the rarer the trait, the higher the value. Owning a sought-after BAYC NFT unlocks exclusive membership to the Bored Ape Yacht club. Bored Ape owners can participate in exclusive clubs. Access to social meetups, get-togethers, and celebrations. There was a Yacht Party and concert for Ape holders that features Chris Rock, Aziz Ansari, and The Strokes. BAYC NFT holders earn from revenues generated by Ape community projects. Adidas launched its first NFT project, into the Metaverse in collaboration with several NFT brands, BAYC among them.
H&M, a famous retail brand just launched its first virtual store in Metaverse.
Many luxury brands such as Louis Vuitton, Balenciaga are exploring Metaverse, which is a clear indication about the hybrid(Online and offline) offering.
Everything in Metaverse is NFT?
I am not surprised if you have this question in mind. If you think the answer is yes then you’re right.
Metaverse is designed for the community and is governed by the community. NFT provide a certificate of ownership and hence it plays a very important role in Metaverse. In fact, I can’t imagine Metaverse without NFT.
Let’s discuss a scenario.
A group of developers, artists, designers have put together an enormous amount of effort, worked days and nights,s and finally, a Metaverse named Galaxy(just some imaginary name) is ready for the public. Of course, there would be DAO(Decentralized Autonomous Organization). When it first goes public, some tokens would be raised to fuel the cost and project infrastructure. Let’s say the token name is GALAXY(again some imaginary name, apologies if names already exist. I don’t mean to promote, it is just for explanation). Community members could potentially buy land in Metaverse with some initial price.
If the project goes well, there would be high demand for land in Galaxy, and users could sell or rent the land in Metaverse at a higher price. So clearly land in Metaverse is NFT.
Let’s see what else can be done in Metaverse. Users might rent their land to some brand to showcase their artwork, again each artwork would be NFT show that users can buy/sell them. You may walk along the Metaverse using your digital identity(avatar) which is also NFT.
As we can see, the list goes endless, everything starts to look like NFT, indeed that is the case.
It is truly up to you how creative you can be to make the full potential of Metaverse.
Industries disrupted by Metaverse
- Social Media
- Gaming
- Fashion
- Marketing
- Finance
- Architecture
- Virtual shows and concerts
- Art galleries and Museums
Brands and companies can capitalize on the Metaverse to increase fan engagement, customer relationships or possibly even open new revenue streams. Possibilities are just endless.
I have written this article keeping in mind that many of the readers are still trying to understand what actually Metaverse is. I hope I managed to explain without going too much into technical. In the future article, I will cover more technical details around Metaverse and possibly NFT Marketplace integration with Metaverse.
