The Metaverse is a term that has been extremely popular lately within the sphere of crypto. Especially with the rise in popularity of non-fungible tokens (NFTs), it seems that there has never been more interest within this virtual world where anyone can do just about anything.
However, not many people might be familiar with the term or know what it means.
With the main goal of making this as simple to understand for you as possible, we will be going over everything you should know surrounding the Metaverse.
Let’s dive in.
What Is The Metaverse?
The term ‘metaverse’ is a combination of two words ‘meta’ and ‘universe.’
This was coined three decades ago by Neal Stephenson in his 1992 novel ‘Snow Crash’ which was a science fiction.
Broadly speaking, the metaverse is defined as a virtual world using multiple technologies like Augmented Reality (AR), Virtual Reality (VR) and video to create a digital space where users can ‘live’ and ‘interact’ as their own avatar.
Metaverse is often called the internet’s next frontier and is treated as a significant financial and business opportunity for the tech industry.
Metaverse is not just a single type of experience rather it offers an immersive experience for the users. In near future, this technology will allow users to engage in a range of different activities in a digital world that runs parallel to the real world.
Metaverse Terms To Know
There are a few things that you need to know to fully grasp what the Metaverse is and how all of it works. Here are some of the key metaverse terms that you need to know:
- Interoperability – this is essentially the identity to travel across different platforms or virtual worlds without any changes.
- Decentralization – this is a distributed ownership, which means that a metaverse is beyond regulation and is instead run by a range of computers spread across a global scale and controlled by thousands of people.
- Non-Fungible Token (NFT) – this is essentially a digital token that is saved and stored on a blockchain network.
- Digital Twins – It simply refers to physical spaces that have been created within the Metaverse.
- Web3 – this is a blockchain-powered decentralized internet that creates an uninterrupted connection between the virtual and physical world.
- Extended Reality – a combination of AR, VR and mixed realities.
- Decentralized autonomous organizations (DAOs) – community-led digital organizations that run on top of blockchain technology.
How Is Metaverse Used Today?
Back in 2021, Facebook announced that they were changing its name (we are not used to it yet) to Meta Platforms (FB). The social media giant will be leveraging its ownership of Oculus, a VR equipment company.
Microsoft is also planning to move to the metaverse with their own service called Mesh. This platform provides access to augmented reality via users’ laptops or smartphones without the need for a VR headset. Microsoft even has a plan to integrate MS Teams into the metaverse to provide an immersive experience for remote workers.
Nvidia Corp is also working on metaverse projects which will be used for creating simulations of factories and buildings through their own Omniverse platform. Likewise, Roblox, an online platform is creating a metaverse experience for young gamers.
Nike is also quietly making a metaverse entry. They are using their main logos for the creation of virtual sneakers and gear. They have also created Nikeland where players get indulged in exciting sports.
Brands can essentially set up virtual shops within the Metaverse, where buyers can take 3D virtual tours and try out specific products before making a purchase. Samsung, for example, launched the Galaxy S22 on Decentraland within their location called 837X.
Industries Benefitting From the Metaverse
Retail and Fashion
The use of VR and AR has been a boon to the retail and fashion industry. These technologies create an immersive digital shopping experience for shoppers where they can try on items or browse catalogs from the comfort of their homes.
This is probably the most benefitted industry by metaverse. Games like Fortnite and Minecraft are offering an immersive virtual environment where players can interact with each other in real-time through a customizable avatar.
Metaverse users can purchase in-game items in the form of NFT. These NFTs can be used in another metaverse that runs on the same blockchain.
Hilton, a global hotel chain has recently shifted their focus on VR technology. They have a plan to take their employee learning and development curve to the next level with the help of VR technology.
After a successful partnership with the Oculus platform, Hilton’s top management and front-line staffs are about to develop hospitality skills in a virtual environment by simulating real-world scenarios. This in turn will improve the overall service quality.
Students are getting more immersive and interactive learning experiences in their schools, colleges or various learning centers even if these are not equipped with state-of-the-art infrastructure.
With VR technology students can learn hard skills and tough job simulations e.g., flight simulator for pilots. At the same time, VR is used extensively to teach soft skills like resilience and leadership. The advantage is you can learn these hard and soft skills remotely and at a fractional cost.
Many universities have already opened their ‘virtual campuses’ where access to higher education is ensured by leveraging VR technology. There are a few significant events already took place in recent times in the education industry.
For example, The University of South Korea recently came up with an intuitive solution by arranging their student entrance ceremony in Minecraft amid COVID-19 restrictions.
How Does Metaverse Intersect With Investing?
The cryptocurrency token used across the different metaverse platforms makes it a possibility for users to buy and sell goods, services, or even land.
Typically, investors will buy NFTs, which are a form of digital ownership. As such, the Metaverse can have an enormous impact on cryptocurrency and the value of their native cryptocurrency tokens.
Investing in the tokens that power these worlds could lead to heightened governance power over the project for the holder of the tokens or for a solid return of investment (ROI) down the line.
Facebook Meta, Microsoft, Roblox, Nike and Nvidia are all good (yet risky) investment opportunities for people interested in investing in the metaverse. Buying lands or real estate in the metaverse is also an investment opportunity. However, this is also not a tested investment medium.
The Metaverse is a concept that has been in development for years, but with the rise of Web3 technology and blockchain networks, we are finally able to experience it with ease.
The Metaverse is ultimately the next generation of the internet and is specifically built around providing users with activities that they can enjoy with their friends or coworkers. Several industries are also getting benefits by entering the metaverse space.
There are also some economic incentives for them to do a variety of different activities within these worlds. Get to know the Future, Get to Know Mannawealthmanagement.com
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