What is the world is "Metaverse"?

 

“The metaverse” isn’t just a single specific type of technology, it is somewhat more of a broad shift of how we interact with technology.

Most likely, you have heard of the "metaverse" if you have been constantly scrolling through Facebook. In late 2021, CEO Mark Zuckerberg announced that the social media giant would be rebranded as "Meta" and would focus its future on the upcoming "metaverse." When Meta released its introduction video, the hype around this term had users on the edge of their seats, seeing what Facebook had planned for the future. For those who are living under a rock, you must still be wondering, "What the heck does "the metaverse" mean? 

 

Let’s start off by understanding that "the metaverse" isn’t just a single specific type of technology; it is somewhat more of a broad shift in how we interact with technology. It has different meanings to different people; some believe it's just another virtual space to hang out with friends, but for some more idealistic people, it has the potential to be a commercial space for companies and customers. To put it simply, the concept of the metaverse involves a combination of various technologies, such as cryptocurrency, artificial intelligence (AI), augmented reality (AR), virtual reality (VR), spatial computing, and others, to create a seamless and extended digital experience. Additionally, the "enterprise metaverse" could potentially form a unified platform that expands the opportunities beyond just being a virtual space for people to interact, thus unlocking more possibilities that enable individuals to engage in immersive and realistic personal and business experiences online.

 

What is in the Metaverse?

The current metaverse is composed of ten layers that can be grouped into four categories: content and experiences, platforms, infrastructure and hardware, and enablers. Some examples of each layer include:

 

Content and experiences:

• User-generated content, created by users, creators, and developers, that enhances the metaverse experience
• Applications designed for specific metaverse use cases, such as learning or events
• Virtual worlds where groups can come together to interact and create

 

Platforms:

• Platforms that enable access to and discovery of content, experiences, and applications within the metaverse
• Platforms designed specifically for creators of 3D experiences

 

Infrastructure and hardware:

• Devices, operating systems, and accessories that allow people to interact with the metaverse
• Underlying infrastructure such as cloud computing, semiconductors, and networks that power the metaverse

 

Enablers:

• Security, privacy, and governance tools that are crucial for the smooth and fair functioning of the metaverse
• Tools and applications that manage digital identity
• Tools for accessing the metaverse economy via payments and monetization

 

Is "the Metaverse" just hype, or is it the future?

Words are spreading that "the metaverse" might just be a momentary trend and soon burn out; however, we do not know how fast this technology will evolve, and there is significant interest and engagement from users, indicating a potential shift in the way people use the internet.

 

A study from McKinsey states that more than 20% of the population will spend most of their time online doing daily activities like working, reading, exercising, etc. Additionally, 10% of the population has tried metaverse dating or AR, and they enjoyed it more than real-life alternatives.

 

Here are a few reasons why the metaverse is here to stay:

1. Advancements in technology, such as computing power and graphics rendering, are allowing larger virtual worlds to exist. The adoption of 5G is making it easier for people to access these worlds on their mobile devices. The expenses involved in manufacturing AR and VR equipment are on the decline, while there is growth for new devices such as haptic gloves and bodysuits.
2. Many tech companies have invested heavily in building the metaverse, and companies of all sizes are eager to participate.
3. Gaming is already a popular use case for the metaverse, but there are also expanding applications such as immersive retail, sports, education, corporate training, and collaboration. The city of Seoul has even created a virtual mayor’s office.
4. Commerce in the metaverse is similar to online commerce, but transactions are done with cryptocurrency, which is becoming more common and lowering the barrier to entry.
5. Gen Z consumers are more comfortable with virtual worlds, transactions, and goods than previous generations, which bodes well for the growth of the metaverse.
6. Influencer marketing is likely to play a significant role in the metaverse, with creator-users providing innovative and engaging experiences.

 

To summarise, according to the prediction of McKinsey, "the metaverse" could generate up to $5 trillion by 2030 through both consumer and enterprise applications. This significant potential indicates that the metaverse is no longer a passing trend but rather a rapidly growing industry with enormous economic implications.

 

Why aren't people Metaverse-ready?

The metaverse and Web3 have drawn significant attention among digital literacies, but anyone outside of this demographic remains unfazed, as the majority of people are still not eager to join existing Web3 platforms or engage in activities within in-game metaverses.

 

This lack of enthusiasm shouldn't come as a surprise. Studies have shown that a small percentage of the population is familiar with Web3, with only 13% of US adults having heard of it. Additionally, a mere 16% of individuals understand how the metaverse works, as revealed by an online study in the US.

 

The limited excitement surrounding Web3 and the metaverse is due to several factors. Many consumers lack awareness and don't have the time or inclination to further research these emerging trends. On the other hand, individuals who are generally enthusiastic about technology may not see any direct relevance to their everyday lives, which then won’t spark an interest in exploring virtual reality. With that said, both Web3 and the metaverse currently appear as vague concepts to the masses, and it will take time for the majority to be enthusiastic.

 

However, developers of future internet technologies should not be too concerned by the lack of mainstream audience interest. It is natural for early adopters and pioneers to lead the way and educate others about these concepts. For example, in 1996, there were only 45 million internet users, but that number skyrocketed to 150 million by 1999. Similar growth and adoption patterns may occur for Web3 and the metaverse once a clearer understanding and tangible benefits are established.