The internet and digital evolution continues to transform how we communicate, presenting fantastic opportunities for users. I’ve always found it interesting to trace the progression be it from static websites to responsive dynamic interfaces (web 1.0 to web 2.0), from Yahoo/AOL chat rooms and Orkut to Facebook, Instagram and WhatsApp or from skype video calls to Facetime, Zoom and Hangouts. Now, we have a new kid on the block– Metaverse. And everyone is talking about it!
I would say talking about what “the Metaverse” means today is a little like discussing what “the internet” meant in the 1970s. While it is true that something new is evolving, there is still no clear idea of what that would look like. So, what is Metaverse? A concept coined by Neal Stephenson in 1992 in a sci-fiction novel, Metaverse is now a real technology. It represents a highly interactive three-dimensional virtual world powered by technologies like virtual reality (VR), augmented reality (AR), blockchain and IoT. In the Metaverse, like in the real world, users can trade, buy buildings, do commerce, accumulate digital assets, play games, interact and explore spaces using personalized avatars.
While the concept of Metaverse has been around for over a decade, the idea became popular with big players like Facebook and Microsoft announcing their Metaverse projects. Chip maker Nvidia has also turned its focus on the metaverse, calling it ‘omniverse’. Gaming companies that have been pioneering immersive online experiences for long are also key players with platforms like Roblox and Epic Games (behind the hit game Fortnite) curating in-game online economies and capitalizing on their following now. Digital worlds like Decentraland and Sandbox have been created that allow users to explore a virtual metaverse filled with non-fungible tokens (NFT) and user-created environments. This has led to a virtual in-game economy where user use personal wallets to manage NFT, tokens and other blockchain assets owned by players. Even institutional and retail investors are gearing up with SoftBank announcing investment in a South Korean metaverse platform. Brands too see it as an opportunity to sell, advertise and promote in the metaverse. Be it gaming, education, social media, events, business or commerce – everyone wants to get on the bandwagon! However, the online virtual reality experience that almost every tech giant today wishes to commercially exploit may not catch on as some hope.
Emerging Use Cases
That does not mean that the metaverse is just a passing fad. We already have several real-world use-cases before us.
Gaming reinvented: Metaverse has taken gaming to a whole new level. It makes the virtual world feel incredibly real to users and is now a social space where they can compete while also socializing with their friends. Being called “a global living room for millions of gamers”, experts predict that gaming will dominate the AR/VR investments and drive Metaverse’s growth. Fortnite by Epic Games has quickly evolved from a multi-player game into an online space where gamers socialise and big-name musicians such as Ariana Grande and Marshmello host virtual concerts. Platforms like GameFi combine video gaming, blockchain technology, and decentralized finance (DeFi). Social gaming and mixed reality experiences are set to dominate the metaverse gaming experience as gaming moves from closed data servers to blockchain networks.
Brands and Marketing: Businesses are always looking for technology that can them promote their offerings effectively and retail is likely to be one of the biggest sectors in Metaverse. With Metaverse businesses are going beyond the two-dimensional surface of e-commerce and adopting real world-like virtualized immersive experiences. Businesses are interacting with customers and merchants alike in a virtual space, where they can offer a more personalised and interactive experience. Further, the Metaverse also complements the creation, ownership, and trading of digital assets and tokenized versions of real-world assets to empower cryptos and NFTs. Brands are eager to jump onto the Metaverse bandwagon and we see some like Nike selling shoes in the metaverse, Coca Cola auctioning NFTs and Gucci selling digital bags that are more expensive than the physical bag as well as buying land in Sandbox.
Expansion of social media: Facebook has already rebranded to Meta, embracing the metaverse as the next evolution of social connection. The idea being to introduce a three-dimensional space that is not limited to watching people on mobile screens and listening to their voices. Social media is now moving towards a more immersive experience. From simple text-based chats to sharing videos and photos in real time, social media is now entering the virtual world of Metaverse. The content in the Metaverse is graphic-intensive and the users will become content creators as they live virtually inside this universe. Social Media and commerce get further intwined as brands will sell on the platforms and that might create a different social media experience.
Work and Education: The world was forced to go digital thanks the pandemic as everyone shifted to remote work, online classes and other work/study-from-home arrangements. While video conferencing platforms somewhere fall short in providing as engaging an experience as in the real world, the Metaverse provides a more captivating experience with 3D avatars and immersive meetings. Participants can now navigate through a virtual environment be it an office or school and interact with life-like avatars. Already Nvidia’s Omniverse Enterprise, Meta’s Horizon Workrooms and Microsoft’s Mesh are set to empower work in a virtual world.
Virtual Tourism: On the back of the disruption cause by the pandemic, Metaverse might be just what the doctor ordered for the tourism sector. Before booking customers can take a 3D virtual hotel tour of the hotel by putting on their avatars. With virtual tourism, people can walk through the Luxor temple in Egypt, unwind on a beach in Bali or propose under the Eiffel tower all through AR/VR experience without having to physically travel. In fact, people can even book hotels for celebrations such as a wedding or birthday celebration in Goa, Ladakh or Kerala!
Potential Challenges
While living in the virtual world sounds very exciting, like any emerging technology, Metaverse also poses certain potential challenges. The way people act, live and shop in the Metaverse is already giving regulators a tough time and this is when Metaverse hasn’t truly taken off.
– It is tough to identify people in the Metaverse, unlike in real life. You have to verify the user through their voice, expressions and features of avatars.
– This makes it easy for scammers or bots to damage someone’s reputation by pretending to be someone’s avatar.
– Then there is the privacy concern. The use of VR and AR devices makes leaking of personal data easy since they are equipped with camera capabilities and unique identifiers.
– There is also a need for regulation and monitoring of the Metaverse. There have been instances of bullying and harassment but unfortunately there are few mechanisms to easily report the misbehaviour.
– Expensive gear such as headsets may also be a barrier to mainstream adoption. Not many can afford the gear and set up required for an immersive experience.
– Add to that mental and physical health toll of spending large chunks of time wearing a headset/goggles and roaming around in a parallel reality. Psychiatrists are already raising concerns about the impact Metaverse if having on mental health.
Given these challenges and seeing how it is evolving, to me the Metaverse seems to be more of a niche space that is not all pervasive and might not be as revolutionary as its being made out to be. While the Metaverse is ushering in the next stage of evolution in the web ecosystem, it is still more of a fantasy land that will take time to evolve. But the technologies fueling it such as AR, VR, blockchain and IoT will be the future and will go on to make a larger impact beyond these fantasies.