What is Metaverse? A complete guide to our Web3 future

Until recently, many believed that the metaverse was nothing more than a dream of technologists and sci-fi nerds. But since the pandemic, a shift toward digital interaction and the rise of digitally native consumers has led experts to see the metaverse as the next big shift in computing.

From corporate boardrooms and mainstream media to indie podcasts, discussions of the metaverse abound. But how realistic is this vision for a digital reality that parallels IRL experiences? In a world of constant hype, the excitement around the expected impact of new technology sometimes exceeds actual readiness for mainstream adoption. And to some extent, the metaverse is no exception.

But despite the hype, a central question remains: What really is the metaverse?

It’s time to explore the definition of the metaverse, break down how to access it, identify the key players and hear from experts to examine what it means for the future.

From the outset, it seems like a subjective question. While the metaverse remains largely undefined, many experts refer to the metaverse as an interconnected collection of immersive, three-dimensional virtual worlds that will one day serve as the gateway to most online experiences.

It is important to note that the metaverse is not the same as Web3. Rather, elements of Web3, such as the blockchain and NFTs, will be used to build the metaverse.

At the time of writing, much of the metaverse’s future is still uncharted. So it’s hard to say how it will really come true. But considerable debate swirls around the cultural zeitgeist: Should the metaverse be open, trustless and decentralized, or can it be “owned” by a large tech giant like Meta?

Without decentralization, some argue, we will fall into the same patterns of centralized data ownership and bureaucracy that plague our current technological environment. Others are more focused on the user experience and don’t mind the metaverse being controlled by a single entity.

While much of today’s metaverse is accessible in-game or in the browser, many experts believe that metaverse experiences will be powered by augmented, virtual, and mixed reality. To achieve this, however, true metaverse exploration will require additional hardware and significantly greater computing power.

For those who champion the idea of ​​the open metaverse, the hope is that users will eventually be able to hop from world to world while maintaining complete ownership of their data and self-sovereignty. But for various technical reasons, we are still years away from this future. So for now, the metaverse is still a walled garden. This means that virtual worlds are enclosed within their own “four virtual walls.” For example, you cannot take your avatar, wearables and data from Decentraland and carry them into Roblox.

Consumers and businesses have moved in droves over the past 12 months to secure valuable real estate in the metaverse. The most popular metaverse worlds like Decentraland and Sandbox are built on the Ethereum blockchain, meaning you need a crypto wallet and some Ethereum to buy a parcel of digital land. While trading volume peaked at $229 million in November 2021, with some lands exceeding $4 million, the market has cooled considerably over the past six months. Land trading on six platforms, including Decentraland and The Sandbox, is down 97 percent from its peak in November, according to data from WeMeta.

But don’t worry, not all worlds require crypto to acquire land. Alternative games like Upland and Other lives allow users to obtain digital land using tokens that can be purchased with any major credit card. For a full review, check out our guide to virtual real estate.

Determined to capitalize on this $800 billion opportunity, many companies, institutions and high net worth individuals are flocking to metaverse investments. And given the rapid development of the industry, along with the mimetic drive of business, all signs suggest that this flood of investment is only just beginning.

In the first five months of 2022, major companies and financial institutions have put $120 billion in metaverse investments, more than double the total amount invested in all of 2021. Meanwhile, the number of companies building in the metaverse has increased by more than twice, from 200 to 500, in just under a year.

So where does all this money go? It transitions into a mix of Web2 and Web3 companies that tackle the four main focus areas of the metaverse: Finance, Infrastructure, User Experience, and Other, as outlined in Metaverse Insider’s market map.

Here are some of the biggest players.

In October 2021, Facebook rebranded as Meta, signaling a broad charge against the metaverse that sent shockwaves through the business and tech worlds. Since then, Meta has focused on building the internet’s next iteration, announcing the launch of its VR game Horizon Worlds, a partnership with DressX, and the development of the world’s fastest AI supercomputer.

Decentralized country

Since its inception in 2017, Decentraland has remained steadfast in building the first browser-based user-owned virtual 3D world. Built on the Ethereum blockchain, Decentraland has cemented itself as one of the premier virtual worlds in the metaverse ecosystem, allowing users to explore, interact and play games. The token MANA is used to power Decentraland’s in-game economy.

The sandbox

Another major metaverse, The Sandbox Game, is a decentralized NFT gaming metaverse, where players can build, own and operate their gaming experiences. Users can own land, build and play games, and create and monetize digital assets. Partners include Adidas, DeadMau5, Snoop Dogg and Atari.

Epic games

Fresh off $2 billion in funding from Sony and LEGO Group owner Kirkbi, Epic Games is looking to build the premier metaverse of the future. Much of this metaverse development is centered around Epic’s Unreal Engine. The engine, which serves as the basis for Fortniteshowcases Epic’s skills in computer graphics, 3D visualization, AR and VR. Fortnite has already led the charge in creating virtual events, bringing together millions of concurrent users for in-game concerts from superstars like Travis Scott, Ariana Grande and Marshmello.

Nvidia

Recognizing the potential of an open metaverse, Nvidia is taking a different approach than many of its competitors. In addition to providing the technologies that will power the metaverse, the international chip maker recently announced that it will provide individual artists and creatives with free licenses for its Omniverse software to build virtual metaverse worlds.

Unit

Game studio turned game infrastructure provider Unity wants to be the rails for the metaverse. But to do that, it first has to run past Epic’s Unreal Engine. Like Unreal, Unity is a cross-platform game engine that helps bring games to life through 3D, 2D, VR and AR.

Roblox

Roblox is not a game per se, but rather a game development platform where users can play and create their own games. And it has seen incredible success. Of Roblox’s 54.1 million daily active users, the average user spends more than 2.5 hours per day on the platform.

Already signaling its power in bringing users together virtually, Roblox’s next step is to tackle the metaverse. The company recently announced a search for a senior Web3 developer, and big companies like Gucci, Nike and Vans are flocking to the platform to build Roblox worlds capable of capturing the attention of younger consumers.

McKinsey reports that 59 percent of consumers are excited about transferring their everyday activities to the metaverse, with a total market impact of $5 trillion by 2030. The impact for e-commerce alone could reach between $2 trillion and $2.6 trillion.

Much of this excitement surrounds the rise of digital ownership and the lack of physical constraints in the metaverse, said Jackson Bridges, Project Advisor and Showcase Guide at ALTERRAGE, in an interview with nft now. This allows true imagination and creativity to shine.

“The metaverse is the dream of every child who grew up on the digital playground, and with the introduction of the blockchain, it now bridges the gap between social interaction and ownership online,” Bridges told nft now. “In the real world, we are limited by gravity and the nature of self-expression of identity. In the metaverse, we can express ourselves through means that would not be possible IRL such as using flaming suits or floating crowns.”

So how close are we to the future metaverse? According to Raja Koduri, Intel’s Senior Vice President and Head of Accelerated Computing Systems and Graphics, we have a ways to go. In his blog post, “Powering the Metaverse,” Koduri cites the need for a “1,000-fold increase in computational efficiency from today’s state-of-the-art” to recognize the metaverse as the future of the internet. To address this, the tech giants are investing heavily in developing their own AI supercomputers, contributing to the growth of the supercomputer market, which is expected to reach 17.2 billion by 2030.

This is in stark contrast to Gartner estimates, which expect 25 percent of people to spend at least one hour per day in the metaverse for work, shopping, education, socializing, and/or entertainment. While it is difficult to predict what the metaverse will look like three years from now, let alone the next decade, this creates a unique allure that stimulates interest, said Sasha Wallingerhead of Web3 and Metaverse Strategy at Journey, in another interview with nft now.

“For creators, this vast and enticing landscape has led to many inspiring projects, from Gucci’s many engagements across the Web3, to a myriad of independent designers developing worlds, digital twins and portals to allow purists and tourists to enter the metaverse in a number of different ways. of ways,” Wallinger told nft now. “When I think about the interaction between consumers and brands in the metaverse, it’s a dance of meeting people where they are and showing up in new ways.”

But despite all the excitement, many business leaders see the as-yet-undefined state of the metaverse as a potential downside without clear measurable success metrics. Wallinger acknowledges this perspective, but believes that these data points are never clearly defined when a system change occurs to this extent. Right now, she says, we are still in test mode.

“Basically, using Web2 metrics to evaluate Web3 activations is pointless,” Wallinger added. “Companies need to be as creative about how they develop strategic roadmaps to integrate the metaverse with audiences as Web3 creators are about building the future of the metaverse.”

Undoubtedly, the metaverse offers many possibilities. But to become fully acclimatized, each of us must expose ourselves to new technologies and environments. “Go to a platform you find compelling and jump in,” suggested Wallinger. “You don’t need a gaming PC or AR/VR headset to enter the metaverse, it’s out there, on your phone, all around you.” In other words: Get involved.