What Is the Metaverse – Here’s Why It Matters

The term metaverse refers to a vast array of phenomena. A virtual space, however, an interactive environment that permits people to interact in a more immersive manner than a traditional website would. Using VR headsetscould be a way to accomplish this. A virtual environment with an avatar is also referred to as the metaverse. Another example would be to show a human being through a cartoon character.

Let me put it another way, Metaverse is a virtual realm that combines elements of digital technology, like videoconferencing, gaming, cryptocurrencies, email, virtual reality, social media, and live streaming. While the precise ways in how these pieces will combine remain a mystery, some of the tech giants’ see it as the future of communication.

The metaverse’s commercial potential was one of the reasons, why Mark Zuckerberg renamed Facebook to Meta Platforms Inc. from Facebook. Another giant Microsoft is acquiring Activision Blizzard in its biggest ever deal in the lines.

In order to understand the concept of metaverse companies , it is important to first highlight what it isn’t. It isn’t a single product; it isn’t a game, and it isn’t being developed by one company. Rather, it’s similar to a 3D version of the web, with immersive, interoperable interactive tools for communication, information, and business.

One way to explain it is as a digital representation of how we live in the real world. Metaverse objects should be able to move across an ecosystem of competing products, while, keeping their value and functionality. Imagine a world in which an original piece of digital art purchased as a non-fungible token, or NFT, from Company X could be displayed on a virtual wall of a house in a game developed by Company Y.

Read: The role of NFT in game development

Main players in the Metaverse space

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Image source: Envato

Facebook’s Mark Zuckerberg is an example. He plans to invest $10 billion in his company’s Reality Labs, dubbed as Meta, a division that makes virtual reality headsets and other hardware. With its Omniverse technology, Nvidia, which makes graphics chips, is trying to power the metaverse. Unity Software also wants to do so. The first metaverse revenue is expected to come from video games.

Activision’s successful takeover by Microsoft is likely to create new metaverses for massive communities of gamers. The company that owns TikTok poured money into virtual reality headset maker Pico and mobile game maker Reworld. The concept of metaverse has already been incorporated by some mobile carriers. Dubit, a U.K.-based consultancy, helps companies working in the metaverse. Not to mention payment providers and cryptocurrencies – someone will have to handle those cross-virtual-border transactions.

Read: Quarantine: TikTok has already exceeded 2 billion downloads

Resources to Implement

First of all, ultrafast internet will be essential for the metaverse to reach its full potential, as millions of people will be able to access and live in the virtual world at the same time. A dismal example is Second Life, which released in 2003, long before smartphones gained popularity, and lost its appeal largely due to its inability to provide real-time, on-the-go interactions.

The 4G connection today can just about handle multiplayer games like Fortnite, but it cannot handle hundreds of simultaneous streams of time-sensitive data. It’s for this reason that mobile carriers around the world have been investing billions in building 5G networks. Even if it takes years, they might eventually need 6G, which will be 100 times faster. Fiber optic connections wired directly into the premises will be needed for speed both at homes and in the offices.

Future of the metaverse

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Image source: Envato

A few years ago, the web was merely a medium for text and images on a page, but now it is a platform for watching movies and buying books, and finally, a platform for collaborative product development. To date, the metaverse has been concentrated in niche areas such as gaming, but will eventually impact how people interact, spend money, and congregate.

The future will see corporations holding their meetings via their avatar. Models for architecture will be created using augmented reality. With the evolution of the metaverse, 3D advertisements will become more popular. Imagine being able to work, study, interact, go to concerts, earn money, and play games all within an online world that is both an extension and a fusion of the real world.

In addition, Metaverse is poised to enable meeting with clients online, as well as digital entertainment, on-the-job training, and even online study in the future. There is no doubt that the Metaverse can change the world, and that drives so many businesses to invest in it. In other words, we are referring to a much bigger field with never ending possibilities.

Until now, we have talked about the scope of the metaverse and what we can accomplish with it. Unfortunately, it comes with a few downsides. There is a good chance of disputes arising in the metaverse. There are risks relating to intellectual property, content licensing, data protection, and cryptoassets. In order to establish the rules, a great deal of litigation will be required.

Read: How Artificial Intelligence Predicts Trading Market

Metaverse for investors

A key challenge investors face is figuring out which companies truly know how to build a compelling metaverse. Generally, big tech firms are perceived to be leading the race. Nevertheless, we’ve already seen how small businesses in the tech world can surprise big ones. When it comes to the metaverse, companies such as Twitch and Snapchat, for example, are a competitive threat to companies like Facebook and Microsoft.

Meanwhile, Investors have yet to take serious notice of the metaverse space. I expect it to take some time for the metaverse to take off. In the short- and mid-term, Metaverse’s future will be shaped by gaming, cryptocurrencies, and NFTs.

Author Bio:

Hasnain Raza Khan provides ghostwriting and copywriting services. His educational background in the technical field and business studies helps him in tackling topics ranging from career and business productivity to web development and digital marketing. He occasionally writes articles for StocksTelegraph.

 

 


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