The Metaverse is the Latest Investment Area for Tech Giants

So far, most people have probably heard of the term metaverse, but what exactly is it, what are its implications? And how are blockchain and AR/VR technology becoming pioneers of the digital renaissance of the 21st century?

The term metaverse originates from Stephenson’s 1992 novel Snow Crash, which depicts the life of a pizza delivery person who spends their free time connecting to a simulated world that allows individuals to perform everyday activities and live as those who designed their avatars.

It has been popularized among Sci-Fi literature and cyberpunks, but recently it has entered pop culture with films like Ready Player One, and video games like Roblox, while Fortnite even showcases miniature versions of what the metaverse could consist of.

The prerequisites for the metaverse have existed for decades, but COVID and lockdown have certainly accelerated its development. Just in the past year, there has been a significant shift from live work and socialization to online life as well as a willingness to participate in a fully digital world.

While older generations spent most of their social lives interacting in person, younger generations are spending more and more time transferring most of their values online. In fact, the average young person spends up to 10,000 hours playing video games before their 21st birthday.

This is why the metaverse has become the latest macro goal for many of the world’s tech giants. Facebook has invested $5 billion in the new VR technology platform Oculus Rift, while Epic Games has received over $1 billion for the development of the 3D Unreal Engine mechanism.

There is a massive change in how people spend their time, as well as in how value is transferred.

The metaverse is a virtual space created by the convergence of enhanced physical reality, augmented reality (AR), and the internet. Our current 2D version of the internet based on browsing is giving way to a complete, immersive 3D reality.

The metaverse is always on and beyond the control of any individual. It exists in real-time, can host an audience of any size, has a functional economy, spans across platforms, provides interoperability of digital assets, and consists of content and experiences created by its users.

Unlike the modern internet, metaverse users will experience real-time changes made by all users. If a user makes any change in the metaverse, that change will be permanent and immediately visible to everyone else.

The metaverse can be imagined as a virtual theme park without limits to its size or creativity. The drivers behind this new world will facilitate the coexistence of hundreds of millions of avatars capable of attending millions of events without the need for multiple servers.

Imagine being able to seamlessly move from a virtual park to a virtual concert with attendance in the hundreds of thousands. These are the possibilities offered by this new technological frontier.

Just as we move from website to website to meet, collaborate, or play games with others on our current 2-dimensional internet, we will soon be able to meet, earn, collaborate, or play games with others within the metaverse in 3D environments.

This will massively expand the internet as we know it by introducing it into the third dimension. Furthermore, the ability to transcend space and physically share environments with others will have a significant impact on our models of interaction.

As knowledge of the shortcomings of Web 2.0 increases, users will prefer a credibly neutral platform that has no capacity for arbitrary censorship or sudden shutdown, one that the metaverse provides.

In the metaverse, the earning power for young creators will not be limited. There will be a whole new group of young entrepreneurs earning a living in virtual worlds, generating real value and a steady income faster than ever imagined.

Creators who were once limited by their ability, technological constraints, lack of capital, time, or creativity will have everything they need at their disposal.

What happens when physical objects dematerialize? All once-scarce materials become abundant.

This will usher in a new era of the economy known as the “creator economy.” In this emerging space, the emphasis is not just on advancing to a new and higher level, but on creating meaningful connections with others. The metaverse is a place where aspiration and self-expression thrive.

Companies, games, and experiences that cater to this new culture will be the true social and economic winners. Market participants relying on inherited technology that is too slow, expensive, fragile, or unreliable will be forgotten.

What is crucial for these experiences are the comprehensive economic systems that support them. Decentralized networks will provide an unparalleled degree of assurance, while NFTs on top of them enable a universal digital representation and ownership layer for any digital asset.

While most are familiar with purchasing digital goods like swords, clothing, and pets in virtual experiences, this new economy can now also serve those providing digital services.

In this way, the metaverse models the real world, mirroring existing economic structures and building upon them to support this new generation of users seeking innovative ways to earn and interact in the digital space.

As more users dedicate serious time and capital to the digital realm, these worlds will increasingly be recognized as legitimate places to work with growing complexity.

There is no doubt that the future is digital. Universal distrust in institutions drives the desire for alternatives. Decentralized networks and cryptocurrencies lay the foundations for a sovereign financial system, an open creator economy, and an ownership layer through NFTs.