Deep dive into Metaverse
You have probably heard a lot recently about the magical Metaverse that is about to overrun the new reality. Maybe, you've noticed a flourishing appetite from large companies on the subject, such as Facebook, which recently announced a rebrand to Meta, and officially transitioned into a metaverse company. Maybe, you’ve read that the metaverse is going to replace the internet or some dystopian fears surrounding it. However, without going to extremes, we have to admit that the metaverse has the ability to take you places and thus have real-life experiences. Even if the metaverse isn’t fully in existence yet.
The Metaverse creates connections between the financial, virtual, and physical worlds, which are becoming increasingly linked. Let's take a more in-depth look at the growing scope of possibilities in a developing Metaverse.
Table of contents:
What is the Metaverse?
What are some of its core characteristics?
Persistence
Real-time experience
Links with outside economic systems
Metaverse variety
How does Crypto fit into the Metaverse?
Metaverse Land Sales
Sandbox
Decentraland
Somnium Space
Other notable examples of Metaverses expansion
Facebook becomes Meta
Nike chooses Roblox for the launch of NIKELAND
Adidas going virtual
Closing thoughts
What is the Metaverse?
The notion of metaverse was first introduced in Neal Stephenson's novel Snow Crashback back in 1992, where it referred to a 3D virtual world inhabited by avatars of real people. Basically, the metaverse could be explained as an alternative version of reality that exists digitally. That is, the metaverse is simply a vast expanse of digital space where users can interact with each other in real-time and have experienced similar to or even beyond those they have in the real world. As in the physical reality, people are able to interact in this metaverse to work, play, do business, and socialize with other people and elements.
For a better comprehension of the concept itself, when we dissect the term " metaverse ", it derives from " meta " which means " beyond " and from " universe " which refers to all existing matter and space. Thus, the term "metaverse", so to speak, goes beyond everything that is visible and known to exist.
What are some of its core characteristics?
It is difficult to determine metaverse’ concrete nature. Likewise, in most current statements, the metaverse is certainly not endowed with a fixed set of attributes. Rather, it is merely an aspirational term for a future digital world that feels more tangibly connected to our real lives and corporeals. However, it can be identified by some of these characteristics:
Persistence
In the metaverse, a persistent space is permanently forged by environments that continue to grow and evolve. Since it is not limited by the physical spaces of the world we live in, it can be considered to extend infinitely. The metaverse has no end.
Real-time experience
It provides synchronous communication between users all over the world. With emerging technologies, performances can be triggered for users to experience in real-time.
Links with outside economic systems
The metaverse boasts a fully functional economy. Since it is an extension of the real world, users can offer and receive the same experiences as in the real world, and thus link it to external economic systems. A simple token mechanism can be set up for exchanging value: buying, selling, or trading items and services in the metaverse.
Once we have identified the core characteristic of the metaverse, without in any way being exhaustive, let's introduce the emerging metaverse correlations.
Metaverse variety
The metaverse isn’t fully in existence. Once again, the metaverse still doesn’t exist yet. In practice, there are multiple metaverses today, and they can be referred to by different names and terms. Some platforms also contain certain metaverse elements.
Currently, many projects are working in other emerging technologies, such as artificial intelligence (AI), and expanded reality, such as virtual reality (VR) and augmented reality (AR), to create versions of their own digital realities that are intended for the future metaverse. For example, in the gaming industry, developers have pushed the boundaries of what a game is by organizing events with the implementation of these tools within the game and creating virtual economies.
Right now, when referring to the metaverse, the idea of digital platforms that include some of the following elements is often meant:
Feature sets that duplicate older web services or real-world activities
Real-time 3D computer graphics and personalized avatars
A variety of person-to-person social interactions
The ability for users to create their own virtual objects and environments
Links with outside economic systems in order to let users benefit from virtual goods
Conceived designs that are likely to fit well with virtual and augmented reality headsets
How does Crypto fit into the Metaverse?
The decentralized aspects of the blockchain industry are perfectly suited to the development of the metaverse. In fact, tokens can be a natural fit for a metaverse, as they allow the creation of a digital economy with different types of utility tokens and virtual collectibles (such as NFTs). In addition, blockchain technology can provide transparent and reliable governance systems. For example, the concept of Play-to-Earn games can be integrated allowing users to obtain more metaverse tokens and NFTs through reward systems. Therefore, metaverse could be powered by decentralized finance (DeFi), where users exchange value and assets via cryptocurrencies and non-fungible tokens.
Here are the main aspects of blockchain suitable for the metaverse:
1. Digital proof of ownership: For in-game assets, using a wallet provides security through access to your private keys, allowing you to prove ownership instantly across the blockchain. It is one of the most secure and robust methods of establishing digital identity and proof of ownership.
2. Digital collectibility: The same goes for establishing an object as original and unique. With NFTs, it is possible to own items that are 100% unique and can never be copied or forged. A blockchain can also represent the ownership of physical objects, such as real estate.
3. Transfer of value: The blockchain secures the transactions which become immutable once stored on it.
4. Governance: The metaverse also requires mechanisms to implement equitable governance, which has already been proven in the context of the decentralized autonomous organization (DAO) through the use of blockchain.
5. Interoperability: Blockchain technology is continually improving cross-platform interoperability. A single metaverse may require connecting multiple projects, and the solution of custom blockchains that can interact with each other can be integrated into the metaverse.
All these features provide blockchain the potential to power this future technology. Now that we have covered the concept of the metaverse, let's take a look at some of the most popular metaverse that exists today and announcements made by big tech companies.
Metaverse Land Sales
Blockchain-based metaverse platforms have recently exploded under the metaverse buzz. Some of these projects feature virtual worlds that give users the ability to purchase their digital land plots as a form of investment. Digital land is sold as NFT and stands out for its scarcity. The land can then be used to build and develop buildings and metaverse spaces where people can meet, attend exhibitions, events or host games. The metaverse land becomes a valuable asset, and people can earn money by selling, renting, or building it.
In recent weeks, land sales have reached over $100 million in sales volume. The Sandbox was far ahead with $86.5 million, followed by Decentraland with $15.5 million. CryptoVoxels and Somnium Space raised $2.68 million and $1.1 million respectively.
The Sandbox
The Sandbox is a virtual world where players can build, own, and monetize their gaming experiences in the Ethereum blockchain. Basically, It is an Ethereum-based metaverse and gaming ecosystem which fits in with the idea of Create & Play. Players can create digital assets in the form of NFTs, upload them to the marketplace and use them to build game experiences with The Sandbox Game Maker.
The Sandbox metaverse is made up of three main products:
VoxEdit: a software that allows users to create and animate various 3D objects by manipulating the voxels - square 3D pixels similar to building blocks. In other words, it allows the creation of voxel ASSETS, which can then become Non-Fungible Tokens and be imported to the Sandbox Marketplace.
Sandbox Marketplace: a decentralized marketplace for trading in-game ASSETS created in VoxEdit. Voxel ASSETS are first uploaded into an InterPlanetary File System (IPFS) network and then registered on the blockchain in order to prove ownership.
Game Maker: a visual scripting toolbox that allows anyone to build 3D games for free. It does not require any coding skills thanks to accessible visual scripting tools.
The platform has a stable ecosystem, which is powered by the native SAND token used within the platform. Moreover, you can generate revenue in The Sandbox in various ways.
Decentraland
Decentraland defines itself as a virtual reality platform powered by the Ethereum blockchain that allows users to create, experience, and monetize content and applications. It is a virtual world, where users are able to purchase plots of land in order to navigate, build upon and monetize them.
The metaverse uses the dual-token economy model with two primary tokens: LAND and MANA. The MANA is the native token of the platform and it is also a governance token. The holders of the MANA cryptocurrency can participate in voting events on the platform and even more. There are casinos where you can gamble in MANA, with croupiers and greeters who are paid in MANA to show up for work. It also uses NFTs to signify ownership of in-game items like clothes, virtual real estate, and so on.
Moreover, Decentraland is the first completely decentralized metaverse as it uses a DAO structure for governance decisions. As stated on its official website, the community will propose and vote on policy updates, future LAND auctions, whitelisting of NFT contracts to be allowed inside the World, Builder, and Marketplace, and whatever the community deems relevant.
Somnium Space
Somnium Space is another example of a virtual reality application built on the Ethereum blockchain that allows you to create, experience, and trade digital lands, homes, buildings, and in-game assets.
Somnium Space hosts all players in one vast world. That is, a user can go swimming, visit a museum, or dine at a restaurant built by another user in the metaverse, the extent to which Somnium Space users can create unique experiences, environments, and assets is potentially limitless.
Somnium allows users to monetize these VR experiences with Somnium Cube (CUBE) that serves as the platform's native utility token. Also, the metaverse has its NFT marketplace for trading land and NFT-based assets.
Other notable examples of Metaverses expansion
Most recently, a number of well-known brands, such as Adidas and Nike, as well as major tech companies, such as Facebook and Microsoft, have revealed further details about their foray into the metaverse.
Facebook becomes Meta
As you may have heard, Facebook recently announced a rebrand to Meta, and officially transitioned into a metaverse company. Mark Zuckerberg explicitly stated plans to use a metaverse project to support remote work and improve financial opportunities for people in developing countries.
Zuckerberg said he sees the technology as the successor to the mobile internet, reflecting plans to focus on virtual reality and the metaverse. As stated on its official website, the metaverse is the next evolution of social connection. Our company’s vision is to help bring the metaverse to life, so we are changing our name to reflect our commitment to this future. Meta intends to create 3D spaces in the metaverse that will let billions of people socialize, learn, collaborate and play in ways that go beyond what we can imagine.
What's particularly interesting is that Facebook has been working on launching its own crypto-currency and digital wallet for the past two years, with the Diem stablecoin ( ex Libra) project. Even though the project has been facing privacy concerns, it may be that the future metaverse will be powered by its native crypto-currency, which will provide it with integrated tokenomics. However, nothing confirms so far any blockchain technology implementation.
Nike chooses Roblox for the launch of NIKELAND
Nike announced the launch of NIKELAND, a 3D immersive space environment on Roblox, an online gaming platform. The concept involves a virtual world built around Nike's Nike's vision of sport as a lifestyle. Users can create, play and experience a brand new world of their own.
Roblox has a blockchain-based ecosystem that works with virtual tokens. So maybe Nike will introduce NFTs in NIKELAND for avatars customization purposes.
The launch of NIKELAND fits with Nike's mission to transform the way that sports are perceived all over the world. Nike's long-term vision for its metaverse is to host in-game versions of global sporting events, such as online basketball games during the playoffs and football tournaments during the World Cup.
Adidas going virtual
On 17 December 2021, Adidas Originals launched “Into the Metaverse NFT” collection. Indeed, Adidas has entered into a partnership with Bored Ape Yacht Club, PUNKS Comic and gmoney NFT. In a video posted on Twitter, three characters, one from each of the three projects, are seen flying to Earth, each wearing Adidas gear.
The limited edition digital collectible offers holders exclusive collaborative physical merchandise (the iconic adicolor Firebird tracksuit, a graphic hoodie, and gmoney’s classic orange beanie) and ongoing digital utility.
The brand has further intentions to develop the metaverse, adidas also stated that there is a "world of limitless possibilities" out there.
Closing thoughts
Prospectively, the metaverse has enormous potential to transform the way we live, by providing a virtual environment that bridges the gap between the digital and the real. It is therefore quite fair to assume that metaverses will have a long-lasting impact on the future.
Also, the development of technologies like virtual reality, and the ways that current industry leaders like Facebook are getting involved, advancements in blockchain technology and the cryptocurrency sector will play an equally important role in shaping the metaverse’s future.
Similarly, the development of technologies such as virtual reality, and how current industry leaders such as Facebook get involved, as well as the growth of blockchain technology and the crypto industry will play a significant role in forming the future of the metaverse.
Meanwhile, upcoming developments and announcements are driving the growth of metavers, but there are still many untapped use cases.