There has been continuous debate over what the future metaverse is, since Facebook announced its rebranding as Meta and its concentration on it. Is this only science fiction conjecture? Is it a catch-all phrase that refers to both augmented reality and virtual reality?
A metaverse is a virtual reality simulation that may be utilized for a variety of things, including social networking, business, and entertainment. It is a user-made, third-person virtual environment that can be explored and interacted with exactly like the real world. It is a speculative version of the internet that is an all-encompassing, immersive virtual environment that emphasizes social connection.
What exactly is ‘Metaverse’?
A metaverse is an online 3D area where users may interact with one another as well as with computer-generated items and avatars. It is a virtual environment with the Internet acting as its foundational network. Online gaming, social networking, education, and training are just a few of the uses for metaverses. They can be employed to build wholly new, fantastical worlds or virtual ones that closely resemble the actual one.
They give users a singular and immersive experience unmatched by anything else online. There are countless opportunities for exploration and involvement since they are always growing and improving.
Is the Metaverse a novel concept?
No, to be brief. The phrase “metaverse” has been used for some time and has been anticipated for some time. The word “metaverse” was initially used by Neal Stephenson in the early 1990s in his science fiction book Snow Crash. Sainsbury’s, a UK supermarket retailer, developed a VR shopping demo during the 1990s virtual reality craze. When it comes to online gaming throughout the past few decades, virtual worlds have been there for a very long time.
Beyond video games and virtual reality
The game industry has already embraced the metaverse’s basic design, despite the fact that it has been marketed as a larger and more extravagant version of virtual reality. Take the internet game Fortnite as an example. Each participant in this game has a unique avatar that they may use to communicate with other players, get virtual cash, swap out costumes, and more.
Another example that most closely resembles the metaverse is the game Second Life, which we have also previously covered on the blog. By enabling users to purchase property and even get married using digital avatars, the metaverse is supposed to advance this experience.
The metaverse might not be a single, centralized metaverse, according to Satya Nadella, the CEO of Microsoft. It will be a collection of communities available on many devices, and various platforms will be supported.
The Metaverse’s History
Science fiction author Neal Stephenson coined the phrase “metaverse” in his 1992 book “Snow Crash,” which portrays a 3D virtual environment that individuals may, in a way, inhabit.
Hiro, the protagonist of the book, uses a personal terminal to connect to the metaverse and project 3D virtual reality visuals onto his goggles. In actuality, “Snow Crash” is the name of a data file that Hiro’s avatar got in the metaverse. Hiro’s avatar interacts with other people’s avatars in the metaverse.
Putting fiction aside, consumers were introduced to and mostly adopted the metaverse through digital gaming. When Pokémon Go was released in 2016, it revolutionized smartphone gaming by fusing augmented reality.
Since then, multiplayer games like Roblox, Fortnite, and Minecraft have offered a digital setting where users can communicate with each other through avatars, laying the groundwork for the metaverse.
By 2023, the metaverse has been developed and is being used in sectors other than gaming.
The term “metaverse marketing” is rising in popularity among consumer companies. Major global corporations, like JP Morgan, Nike, Adidas, and McDonald’s, all have projects to take use of the metaverse’s marketing potential.
As a result, our global economy gains a new dimension and a new level of interconnectedness.
The management consulting company McKinsey & Company predicted that by 2030, the metaverse will bring in $5 trillion for companies.
What Distinguishes the Metaverse from the Internet?
Despite the fact that the metaverse is sometimes seen as the internet’s next development, there are important contrasts between the two.
A network of websites make up the internet as we now know it.
Websites were first exclusively made for the purpose of disseminating information.
Today, websites are used for a variety of activities, including communication, entertainment, and commerce. Social networks’ advent transformed the internet into a platform for individuals to interact and share their lives. Despite how big the internet is, it still serves as a location for people to produce and share knowledge on events that occurred in the “real world.”
The metaverse, on the other hand, is a virtual setting where people “live” their virtual selves. The events taking place in the metaverse and the information it contains could not be related to the “real world.” In other words, the internet is a virtual realm that lives alongside the actual world, whereas the metaverse is an extension of it.
Think about publishing photos of a dinner party with your friends on social media vs hosting a virtual meeting with your friends in the metaverse to grasp this distinction.
You may engage in many of your regular daily interactions and events in the metaverse while in avatar form.
Interactions between avatars of different persons are possible.
In the virtual world, you may engage in many of the same activities that you do in the actual one, including buying and selling products, going to concerts and museums, building or renovating a home, and more.
How the Metaverse Was Made Possible by NFT and Cryptocurrency?
The metaverse requires a system to facilitate business transactions in order to make it possible for businesses to operate there.
There are two difficulties in trading products and services in the virtual world.
It must first have a method for calculating value. The metaverse needs a means to verify the veracity of the items and the owners as any digital goods may be simply duplicated and recreated. You probably don’t want to spend the same amount for any digital items that are copies of the originals – even though they appear the same – just as you wouldn’t pay the same price for an unreliable automobile or an imitation Gucci.
The metaverse also need a method for conducting business online. It requires digital money.
Cryptocurrencies and non-fungible tokens (NFT) can help in this situation.
Blockchain technology underpins NFTs and cryptocurrencies alike. Although the technologies are extremely complex, understanding how they are used is quite straightforward.
NFT functions as a document, much like the title to a home. The NFT cannot be duplicated and is therefore always linked to the original, even though the digital output itself can. Consequently, they are known as non-fungible tokens.
Cryptocurrency and the metaverse go together naturally. Since the metaverse is virtual, it is always active, self-sufficient, and opens up amazing commercial opportunities. And a lot of these opportunities have cryptocurrencies as their foundation.
The rise in popularity of cryptocurrencies over the past ten years has been sparked by the introduction of Bitcoin in 2009. Ethereum, which also supports NFTs, is the most widely used cryptocurrency in the metaverse.
Metaverse platforms frequently design their own variants of cryptocurrencies. ApeCoin, for instance, is a cryptocurrency that Bored Ape Yacht Club, a well-known NFT art collecting marketplace, has created.
There isn’t a standardized way to get into the metaverse right now. It’s possible that different metaverse platforms have various specifications. However, you may typically begin exploring the metaverse with a computer or a mobile device that you currently own.
You normally need to create a user account in order to access this site, just like any other platform on the internet.
Most platforms let users sign up for nothing. You would need to create a bitcoin wallet if you wanted to do any business.
How Big Brands Are Participating
A few of the companies getting ready for the metaverse are well-known brands like Nike, Adidas, and Vans.
Nike applied for multiple trademarks in October 2021 for its well-known catchphrases and logos (such as “Just Do It” and the recognizable checkmark), enabling it to produce and market virtual products.
This also happened at the same time when Mark Zuckerberg revealed Meta. Later that year, Nike declared that it had acquired the virtual shoe business RTFKT studios, which would aid it in producing footwear for the metaverse. For shoe enthusiasts worldwide, this is excellent news.
Adidas is entering the metaverse by working with other artists to create special collectibles for NFT projects, which have now sold out. Together, its NFT sales exceeded $22 million.
By investing in NFTs as a business, the brand has supported the NFT community and acquired a sizable piece of metaverse real estate for hosting virtual gatherings.
It is among the first businesses to not only publish NFTs but also make direct investments in the metaverse ecosystem.
Vans is also participating. Over 48 million people have already visited the company’s online skate park. This level of interaction is unmatched; physical gatherings can’t accommodate as many individuals. In order to gain points and personalize an avatar, customers may also purchase in the virtual store of Vans.
However, although some firms actively promote their products on the metaverse, others are less inclined to do so.
However, although some firms actively promote their products on the metaverse, others are less inclined to do so. Many customers have been keen to contact in person as pandemic limitations have eased, which has caused them to become less interested in virtual meeting locations.
Additionally, the development of generative AI as a tool has turned it into a cutting-edge technology that has caught the attention of both marketers and customers.
These are only a few of the factors that have contributed to certain businesses’ success in the metaverse but not others.
Marketing and publicity to the Gen Z
Reaching the next generation of customers, Gen Z, is a significant goal for firms entering the metaverse.
Digital native Gen Z has proven to be difficult to advertise to; they have an instinctive awareness of technology that earlier generations did not have.
According to some sources, Gen Z regards their digital lives as equally vital as their physical ones; for others, there is little to no distinction. The virtual and social worlds are not independent lives, but rather extensions of their more immediate, physical existence.
It also makes global friendships more tangible and exposes them to products they would not have discovered otherwise.
This has a two-fold influence on brand marketing and selling potential: visibility is no longer restricted by physical limits, and physical and digital items become equal participants.
According to Nike, a virtual sneaker is not less valuable because it exists in the digital realm – it is capable of competing.
It’s no surprise that if a brand’s target customer is going digital, firms must embrace digital innovation to compete. As the metaverse becomes more essential as a marketing and commercial medium, metaverse advertising will become vital.
There will be a new wave of advertising.
The new display advertisements will be 3D virtual billboards, and sponsored avatars will replace influencers in the metaverse.
Conclusion
The metaverse is only just beginning. Some businesses and brands are grabbing hold of the chance to be a part of this new world even though its infrastructure is still being built.
But it’s important to keep in mind that although some companies seem to be stepping back from their metaverse endeavors, others seem to be rushing in headfirst.
Early in 2023, both Disney and Microsoft made the announcement that their respective metaverse divisions would be closing. Given that some of the staff members of its metaverse section were let go during recent corporate layoffs, even Meta appears to be modestly reducing its efforts.
But this in no way implies that the metaverse is disappearing.
The metaverse has enormous potential to influence industries and people’s lives, much like the internet did in the 1990s. The metaverse’s technology, applications, and business models are developing quickly.
The acceptance of social media symbolized Web 2.0, whereas the rise of websites served as a marker for Web 1.0. The metaverse may serve as a marker for Web 3.0.
Future developments in the metaverse are unknown. It is, nevertheless, undeniably true that it is no longer science fiction. The time has come.
