When you think of the metaverse, you may picture a person playing a video game while wearing a bulky headset that covers most of their face. It’s not surprising that digital gaming is one of the early adopters of the metaverse. However, the metaverse is not limited to gaming alone. In fact, it has become a significant topic in the realm of technology and business. Recently, there has been a surge of metaverse news, particularly after Facebook’s CEO, Mark Zuckerberg, announced the company’s name change from Facebook to Meta in 2021. This move signifies the growing importance of the metaverse as a mainstream business strategy.
In this article, we will explore what exactly the metaverse means, where it came from, and how it has evolved—and will continue to evolve. Let’s dive into the fascinating world of the metaverse.
What Is The Metaverse?
According to Meta, the metaverse represents the next stage of social connection and is seen as the successor to the mobile internet. However, it is crucial to understand that Meta or any other company does not have control over the entire metaverse. Instead of envisioning a singular virtual realm known as the metaverse, it is more accurate to consider multiple metaverses in existence currently.
A metaverse can be any three-dimensional virtual space that utilizes various technologies such as virtual reality (VR), augmented reality (AR), artificial intelligence (AI), the Internet of Things (IoT), and blockchain. These technologies enable people to interact with each other and, in some cases, with non-human avatars.
There are numerous metaverses available today, most of which are created by individual companies to serve specific purposes. However, the lack of interoperability among these metaverses is evident, as there are no established standards for sharing user identities and data across different metaverse environments at this stage.
The History Of The Metaverse
The concept of the “metaverse” was initially introduced by science fiction writer Neal Stephenson in his novel “Snow Crash” published in 1992. In the book, Stephenson portrays a three-dimensional virtual world where people can virtually exist.
Within the novel, the protagonist named Hiro accesses the metaverse by using a personal terminal that projects virtual reality images onto his goggles. Hiro’s digital representation, known as an avatar, interacts with other users’ avatars in this virtual realm. Additionally, the term “Snow Crash” refers to a data file received by Hiro’s avatar while navigating the metaverse.
While the metaverse originated in fiction, its practical introduction to consumers occurred through digital gaming. In 2016, the launch of Pokémon Go, an augmented reality mobile game, gained immense popularity worldwide. Subsequently, multiplayer games like Fortnite, Minecraft, and Roblox provided virtual environments where players could interact with each other using avatars, establishing the foundation of the metaverse.
As of 2023, the metaverse has expanded beyond the gaming industry and infiltrated various other sectors. Metaverse marketing has emerged as a significant trend among consumer brands. Major multinational companies, including JP Morgan, Nike, Adidas, and McDonald’s, have all initiated efforts to tap into the marketing potential of the metaverse.
This progression introduces a new level of interconnectedness and adds a novel dimension to the global economy. According to McKinsey & Company, a management consulting firm, it is estimated that the metaverse could generate $5 trillion in revenue for businesses by the year 2030.
How Is The Metaverse Different From The Internet?
The concept of the metaverse has been hailed as the next stage in the evolution of the internet, but it is important to recognize the significant distinctions between the two.
Traditionally, the internet has been a network of interconnected websites, primarily designed for information dissemination. Over time, its purpose has expanded to include various functionalities like online shopping, entertainment, and communication.
The advent of social media platforms has transformed the internet into a means for individuals to connect and share their experiences with others. Despite its vastness, the internet remains a realm for storing and exchanging information generated from the “real world.”
In contrast, the metaverse represents a virtual world where individuals inhabit and lead their virtual lives. Within this digital realm, the activities and data are not necessarily tied to the physical world. In essence, the internet is an extension of reality, whereas the metaverse is an independent virtual space that coexists alongside reality.
To grasp this distinction, consider the difference between posting pictures of a dinner gathering with friends on social media and hosting a virtual gathering with friends in the metaverse. In the metaverse, users can engage in their day-to-day interactions and experiences through personalized avatars.
These avatars can interact with other individuals’ avatars, enabling a range of activities mirroring real-world scenarios. From engaging in commercial transactions, attending virtual concerts, visiting museums, to even constructing or renovating virtual homes, the metaverse offers a vast array of possibilities akin to real-life engagements.
How NFT And Cryptocurrency Made The Metaverse Possible?
In recent metaverse news, the thriving commercial activities in this virtual realm have necessitated the development of a robust system to facilitate business transactions. Overcoming the challenges of trading within the metaverse, such as determining value and enabling virtual transactions, has become imperative.
To address these challenges, non-fungible tokens (NFTs) and cryptocurrencies have emerged as key solutions. NFTs, serving as unique certificates tied to original digital goods, ensure authenticity and ownership verification.
Meanwhile, cryptocurrencies, particularly Ethereum, which dominates the metaverse landscape, provide a natural fit for virtual currency needs.
Furthermore, metaverse platforms often introduce their own cryptocurrencies to enhance the user experience. A notable example is the Bored Ape Yacht Club, a renowned NFT art collection marketplace, which has made waves with its exclusive cryptocurrency called ApeCoin.
How Do You Get Into The Metaverse?
The world of the metaverse is currently accessible through various platforms, each with its own unique requirements. However, there is no standardized approach to entering this virtual realm. Luckily, getting started in the metaverse is quite straightforward as you can use the devices you already own, be it a computer or a mobile device.
Similar to accessing any online platform, creating a user account is usually a prerequisite. This step allows you to establish your presence and begin your metaverse journey.
The majority of metaverse platforms offer free entry to users, enabling them to explore and navigate the virtual landscape. However, if you wish to participate in commercial endeavors within the metaverse, it becomes necessary to set up a cryptocurrency wallet. This will enable you to engage in transactions and contribute to the vibrant digital economy.
Nevertheless, for a truly immersive metaverse experience that encapsulates its renowned features, the incorporation of a virtual reality (VR) headset is essential. Devices like the Oculus Quest 2 can transport you into a world where the boundaries of reality blur, allowing you to interact with the metaverse in a deeply engaging manner.
How Major Brands Are Getting Involved?
Numerous companies are embracing the metaverse phenomenon, and noteworthy players like Nike, Adidas, and Vans are at the forefront of this movement.
In October 2021, Nike took a significant step by filing trademark applications for its iconic slogans and symbols, such as the renowned “Just Do It” motto and the unmistakable checkmark logo. This move allows Nike to manufacture and sell virtual merchandise, paving the way for its entry into the metaverse. Coincidentally, around the same time, Mark Zuckerberg made headlines by introducing Meta, further fueling the metaverse buzz.
Exciting metaverse news arrived when Nike announced its acquisition of RTFKT Studios, a virtual shoe company. This strategic partnership positions Nike to create and offer virtual shoes for sale within the metaverse, delighting sneaker enthusiasts worldwide.
Adidas, too, has joined the metaverse revolution. The brand embarked on collaborative NFT projects, collaborating with artists to produce exclusive collectibles. The popularity of these NFTs soared, generating over $22 million in sales. Adidas solidified its commitment to the NFT community by investing in NFTs as a company and securing a large plot of land in the metaverse, intending to host virtual parties and events. As one of the pioneers, Adidas not only released NFTs but also embraced the metaverse ecosystem through direct investment.
Vans, a renowned name in the footwear industry, is also making strides in the metaverse news. The company constructed an online skate park, attracting an impressive 48 million visitors to date. The level of engagement achieved in this virtual setting surpasses what is possible at in-person events. Additionally, customers can explore Vans’ virtual store, earn points, and customize their avatars, enhancing their shopping experience.
However, not all brands are fully convinced about the metaverse’s potential. With pandemic restrictions gradually lifting, many consumers crave in-person connections, diverting their attention from virtual meeting places.
Moreover, the emergence of generative AI has captivated the interest of consumers and brands alike. This innovative tool adds another layer to the metaverse news, giving rise to new possibilities.
These factors, including consumer preferences for physical interactions and the allure of generative AI, shed light on why the metaverse news has gained traction among certain brands while others remain cautious.
Conclusion
The metaverse, a nascent realm of virtual reality, is currently in its early stages of development. While the infrastructure is still being established, numerous companies and brands are seizing the opportunity to immerse themselves in this novel world of possibilities.
It is important to acknowledge that while some brands are wholeheartedly embracing the metaverse, others seem to be taking a more cautious approach, stepping back from their initial metaverse ventures.
In the beginning of 2023, both Disney and Microsoft made headlines by announcing the closure of their respective metaverse divisions. Even Meta, formerly known as Facebook, appears to be scaling back its efforts, as evidenced by the recent layoff of some employees from its metaverse division.
Nevertheless, the metaverse is not fading into obscurity; quite the opposite. Just like the internet during the 90s, metaverse news holds immense potential to shape businesses and transform people’s lives. The technologies, applications, and business models surrounding the metaverse are evolving rapidly.
Just as the proliferation of websites symbolized the advent of Web 1.0 and the rise of social media marked the era of Web 2.0, the metaverse has the potential to define the era of Web 3.0.
The future of the metaverse remains uncertain, as its evolution is yet to unfold. However, one thing is unequivocal – the metaverse is no longer confined to the realm of science fiction; it has already become a tangible reality!
