The Metaverse today and its probable future explained

Since Facebook’s rebranding as Meta, there’s been a surge in tech companies exploring and developing Metaverse-related services. Just as “The Cloud” became the lingo for network-based computing back in 2006, when the Google CEO at the time, Eric Schmidt, introduced the term at a conference, Metaverse searches spiked from an interest index of 4 to 100 in October 2021 after Facebook’s (Meta’s) announcement.  

BlackRock Inc., a prominent asset manager, has openly endorsed the idea of investing in this dynamic and rapidly evolving industry. The potential returns for investors seem promising as we are only at the beginning stages of this sector, with plenty of opportunities left to be discovered and pursued. 

The aim of this article is to give insight into what the Metaverse is, how it is perceived, and how it could become more than just a mere version of virtual reality in the future.  

The word Metaverse was first introduced by the popular science fiction author Neal Stephenson in his 1992 novel Snow Crash, which was nominated for two awards, the prestigious British Science Fiction Award, and the Arthur C. Clarke Award.  

In the novel, people have an avatar which they use to interact with a virtual world that many of them prefer inhabiting, to escape a dystopian reality. For those who have read the novel and play videogames, the “world” as presented in Snow Crash, might seem very much like the virtual and extended reality worlds they are accustomed to in multiplayer games, which currently provide the closest feel to a Metaverse experience.  

Essentially, the Metaverse is a concept of an online, 3D universe that may combine multiple and different virtual spaces, connecting several aspects of our everyday life. You can think of it as a future and broader iteration of the internet that will eventually allow users to gather, work, socialize, game, and interact in 3D spaces. Just like we do nowadays, using the internet, where under one browser we open different websites. Under the Metaverse we will get the chance to perform almost all acts of life.  

The difference is that the Metaverse’s aim is to be driven by an augmented reality, with each user controlling a character or avatar, just like in Snow Crash. For example, after taking part in a meeting using a cloud-based video conferencing service, you might choose to relax by playing a blockchain-based game, then manage your crypto portfolio and finances while sitting next to a friend of yours located miles away, and all this can be done in the comfort of your own space, inside the Metaverse. Although it might sound like what is offered now by existing technology, the difference lies in the use of augmented reality. This technology superimposes computer-generated images (CGI) embedded in the user’s view of the real world. Unlike virtual reality, where everything a user sees is generated by a computer, augmented reality keeps the real-world plane environment untouched, but adds elements that are not physically there, to enhance the user’s experience. 

Meta’s vision of the Metaverse is even more captivating. According to Meta’s view, the metaverse is a seamless integration of the real world with the digital world. In a true Metaverse, people are not “stepping into and out” of virtual reality; everything is smoothly integrated— from payments and videos to seeing holographic versions of friends. People can create 3D worlds and environments that can integrate flawlessly with other creators’ environments, not being able to distinguish between “online” and “offline”, between “fiction” and “reality”. 

It is important to understand that according to Meta’s perception, the Metaverse is not intended to be a virtual reality (looking through VR glasses). Their intent is to create complete immersion.  

The interaction should feel entirely natural. If someone were to create a 3D model of “King Kong” in Times Square, while logged into the Metaverse subscribed to that creator’s updates, you should be able to perceive that “King Kong” as if you were looking at your own arm.  

Exciting and scary at the same time, isn’t it? 

The technology to make this happen is still sometimes lagging.  Take hologram technology, for instance, which is continuously evolving. At least it is for the type of holograms required to create a true Metaverse— completely immersive, smooth and with moving 3D forms.  

The ecosystem and infrastructure are essential and, indeed, more within reach today than they were back in 1992. The Internet of Things (IoT), where physical objects, or ‘things,’ are embedded with sensors, software, and other technologies to connect and exchange data with other devices and systems over the internet, has increasingly become the norm rather than the exception in many parts of the world. Today, there are more than 10 billion connected IoT devices, a number that is expected to grow, according to leading company Oracle. However, there is still a considerable amount of work to be done to achieve a fully functioning Metaverse. 

Meta made the start for the creation of a unified Metaverse. Mark Zuckerberg bases his vision and offer on the common good of societies, and on supporting remote work for people in developing countries while improving financial opportunities for them. Facebook has the foundation to achieve this by bringing ownership of social media, communication, and crypto platforms (they were ready to announce their own stablecoin – Diem, which has been cancelled for the time being) on the table. Other large tech giants like Microsoft, Apple, and Google are also targeting the Metaverse market. 

When it comes to cryptos and the Metaverse, further integration between NFT marketplaces and 3D virtual universes seems like the next step. NFT holders are already selling their goods on marketplaces like OpenSea, but a 3D platform does not exist. We can expect blockchain tech companies (other than the big tech giants) to enter the market by developing Metaverse-like applications, aiming for a piece of the pie. 

While a single, linked, homogeneous and global Metaverse may still be far in the future, we can see developments towards its creation. Whether we will ever truly immerse ourselves in it completely remains uncertain. In the meantime, Metaverse-like projects are constantly presented, integrating blockchain technology more into our daily lives. Now that the Metaverse has grown to become the business buzzword of the day, investors are keeping a close eye on advancements, identifying those who have embraced the trend early on and those who have been involved from the start, long before Meta’s announcement. Those companies that have a proven record of showing technical capability and business-orientated vision are the companies that investors will monitor most closely and invest in before their prices skyrocket. 

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