For starters, it is a virtual reality environment. It embodies the internet in three dimensions. Therefore it is safe to state that Metaverse is building alternative economies and online ecosystems. Simply said, the metaverse is a shared virtual environment where anything is possible and doable. It combines the physical and digital elements of our world and creates a new virtual version of the world.
It is still a developing concept and for now, we already know that users (avatars) can go shopping, study, socialize, attend concerts and galleries, do business, and do a variety of activities. The metaverse virtual worlds are constructed on a blockchain, therefore cryptocurrency is used to run its economy. We see that decentralization is a crucial feature of the metaverse.
Anything can be sold making metaverse a fully commercial medium. People through their avatars can create digital art, games, land, objects, services, and properties and then sell, rent or exchange them for a selected cryptocurrency in this blockchain-based virtual ecosystem.
The NFTs market has been on the rise for the last 4 years. Beeple’s tokenized artwork reached $69 million and skyrocketed the popularity of NFTs. Believe it or not, this is not something new. In 2003, the virtual world encouraged millions of users to form and play inside their own digital world through apps similar to video games.
Global lockdowns enforced the need for shared with friends online activities, setting the foundation for bringing video-game culture into different and more complex sectors of life. More users got familiar with the easiness of virtual reality social interaction making the use of metaverse worlds a natural transaction in e-commerce, art, medical, real estate, and many other sectors.
In addition to bringing people into a virtual space, you can bring virtual elements to them using augmented reality (AR) technology. Also, a growing number of fashion brands are selling virtual clothing and accessories for people’s avatars to wear. As a content creator, you can create virtual items for digital avatars. Complementing virtual spaces, you can use the metaverse to hold various virtual events and create other immersive experiences.
The metaverse economy will not only include the industries that will create its infrastructure, including hardware, software, payment systems, and broadband providers, but also sectors like e-commerce, education, gaming, and more that will provide goods and services associated with it. When social spaces are created in the metaverse, people will need to be employed to manage and maintain them, just as they are in the physical world.
Metaverse & NFTs
A non-fungible token (NFT) is a type of cryptographic token on a blockchain that represents a unique asset. These can either be entirely digital assets or tokenized versions of real-world assets. As NFTs aren’t interchangeable with each other, they may function as proof of authenticity and ownership within the digital realm.
Fungibility means that an asset’s individual units are interchangeable and essentially indistinguishable from each other. For example, fiat currencies are fungible because each unit is interchangeable with any other equivalent individual unit. A ten-dollar bill is interchangeable with any other genuine ten-dollar bill. This is imperative for an asset that aims to act as a medium of exchange.
Fungibility is a desirable property for currency because it enables free exchange, and theoretically, there is no way to know the history of each individual unit. However, that isn’t a beneficial trait for collectible items.
What if we could create digital assets similar to Bitcoin but instead add a unique identifier to each unit? This would make each of them different from all the other units (i.e., non-fungible). Essentially, this is what an NFT is.
In case you wish to create your own NFT then this detailed article by The Verge will show you the way. In the guide, you will discover all the steps on how to create an NFT using two of the most popular marketplaces. In addition, this article reveals the basics of NFTs and the decisions you may have to make before deciding to sell one.
Virtual reality, AI-powered content, NFTs, Metaverse, Web3 and Creator Economy are becoming the catalysts of the New Decentralized Economy.
Metaverse & Advertising
Video games had been a major advertising platform for several years. It’s no surprise for advertisers that Metaverse is welcoming AI-powered advertising as well. Most predictions claim that its growth model will reach a multibillion-dollar business.
Furthermore, online gaming, online shopping, online socializing, online education, and so many other online activities are becoming the main online venues for e-commerce & advertising. The number of people who use the metaverse is rapidly increasing. Business owners want to show their products where their clients spend time: in the Metaverse World.
The Latest Understanding of the Metaverse
The metaverse is “the next evolution of the internet,” Allan Cook, Managing Director of Deloitte Digital and leader of Deloitte’s Digital Reality business, tells Toptal. But there’s no cohesive vision on what it will look like, says Leo Gebbie, Principal Analyst at CCS Insight: “There’s a complete lack of real agreement as to what it is or what it does or what it should be.” Cook agrees. “It’s like the blind men and the elephant,” he says: Depending on your approach to the metaverse, you get a different view of what it is.
That said, Cook, Gebbie, and the other experts we talked to agree on a few things: The metaverse involves spatial computing and the overlay of the virtual world onto our physical one, and includes technologies such as blockchain, cryptocurrencies, artificial intelligence, NFTs, and virtual and augmented realities. Keep reading: 4 Bold Predictions About the Metaverse and Business.