Metaverse- Potential for Business and Relevance to Society
What is Metaverse and Where it’s going?
Metaverse, since the term, refers to a digital universe, but within
the metaverse, there are countless worlds popping into existence by companies
like Sandbox, Epic Games, and Decentraland, which means each company or person
may have a different view to the metaverse and the capabilities once inside
their world.
Despite too much confusion, one thing’s for sure; it will provide
a unique internet experience that merges new technologies such as AR, VR, and
MR to create an immersive experience.
The metaverse will allow our physical and digital lives to twine
together, allowing users to feel present and use expressions with avatars.
The notion of copyright leads us to another important aspect. We
are currently observing a type of ownership developing in the virtual sphere.
This contradicts the usual understanding of digitality as a material with the
potential for infinite duplication. However, facilitated by non-fungible tokens
(NFTs) based on blockchain technology,
there are now countless examples of unique owners being assigned to digital
objects. Digital artists, for example, are selling virtual works based on NFTs.
This development, too, must be taken seriously.
NFTs will play a pivotal role in an exchange and building a viable
economy in the metaverse because their key features are transparent
trackability and high security. However, the blockchain will not contain all
the stored data, including images, photos, videos, audio, and text, but only
the transactional data and smart contracts.
Current State of the Metaverse
We are now at the very early phase of the metaverse ecosystem, but
it can do some
great things. All necessary things needed to access
the internet had then been available, including hardware, software, and
servers. Even in the early days of the internet, people had some ideas and
visions about what the internet and the web would bring. But some happened,
others didn’t and many things even turned out very differently from what was
expected at the time.
Similarly, the metaverse can be seen as the next logical step of the
internet, a 3D internet that is permanent and happens in real time. On the one
hand, they will exist in a completely virtual form and will be highly
immersive. The virtual and analog worlds will continue to fuse. We will use augmented
reality/virtual reality to interact with digital content in our real
world.
The current state of the metaverse become increasingly intermixed
because real objects, like clothing, will have a digital counterpart in the
virtual world. Users will have the same avatar as they look and wear.
Digital twins will create a direct connection between the real and
the virtual world, for example, when training rooms and hospitals and their
operating modes are mirrored in the virtual world. Users will be able to access
them there and control daily operations. Another key feature of the metaverse
is that it will give rise to new forms of user-generated content, especially in
the form of 3D objects. 3D objects in the metaverse will be interoperable,
transferable, and tradeable. This is one of the significant differences to the
digital equipment that can be purchased in computer games, the availability of
which is limited.
To facilitate real ownership of virtual objects or even plots of
land, the blockchain plays a central role, particularly in NFTs. These points
to another characteristic of the metaverse in its ideal form: It is
decentralized. Unlike today's internet, there are no closed platforms.
Technologies that Power the
Metaverse
Artificial
Intelligence (AI)
AI can process a large amount of data at high speed. Combined with
machine learning, AI algorithms can learn from previous and continuous
iterations and can work accordingly.
Within the metaverse, AI can be applied to non-player characters
(character in a game that is not controlled by a player) in different
scenarios. With AI’s processing abilities, NPCs can be placed across the 3D
spaces to facilitate real lifelike interactions with users. Unlike a human
user, an AI NPC can run on its own and be used by millions of players at the
same time.
Internet
of Things (IoT)
IoT is a system that takes everything in our physical world and
connects them to the Internet through sensors and devices.
While IoT will allow the Metaverse ecosystem to learn and interact
with the real world, it will also serve as a 3D user interface for IoT devices.
This enables the creation of real-time simulations in the metaverse. Both the
Metaverse and the IoT will assist organizations in making data-driven decisions
with minimal mental effort.
Extend
Reality (XR)
XR (Extended Reality), is an umbrella term encompassing virtual
reality (VR), augmented reality (AR), and mixed reality (MR).
VR works similarly to the metaverse concept; it generates an
entirely computerized virtual environment. Users can then explore it using VR
headsets, wearables, and sensors. AR uses digital visual elements and
characters to morph the real world. It’s more accessible than VR and can be
used by any smartphone with a camera. Mixed Reality (MR), blends the physical
world and the digital world closely together.
All three technologies use three-dimensional objects and place
them in a space, both physically and virtually. This allows one to
interact with these objects and touch, move, and even edit them depending
on their programmed functions.
3D Modeling
One of the challenges for the metaverse is to create a virtual
environment that comes out as close to our real world. With the help of 3D
modeling, it can create realistic virtual spaces. Using special 3D cameras, we
can take our world online by furnishing accurate 3D photorealistic models of
real objects.
3D Spatial Data
The practice of leveraging physical space as a computer interface
is known as spatial computing. The 3D spatial data and 4K HD photography are
passed to computers to process and generate a virtual replica in the metaverse
for users. These virtual replicas of physical world objects can also be
referred to as digital twins.
Blockchain
Blockchain is a decentralized distributed database with some
unbeatable features. Using redundant data storage and a consensus mechanism
between the participants of the block network can ensure that no single party
can change or control the saved information. This has made it possible to
create digital assets that cannot be controlled by a central party and cannot
be duplicated or deleted.
Business models in Metaverse
Business models in the metaverse are highly dynamic. How money can
be made with the metaverse will, from the companies’ perspective, continuously
change over time, i.e., change according to the development of the metaverse.
We know such developments from the platform economy and the new economy. There
are numerous models and guidelines in the literature for developing new
business models.
The expected business
models:
Marketing in the metaverse
One of the great things a metaverse is capable to do good is
facilitating great advertising initiatives that set the trend in the marketing
industry. Many businesses right now look into marketing strategies that work
well with the metaverse, as you can do almost anything you want in this virtual
world there is no limitation.
Currently, the key to carry out an efficient business model
related to advertising is knowing the taste of the generation that’s most
actively connected to the metaverse.
Non-fungible Tokens
Ownership in the metaverse is possible through NFTs, as they are
unique, incomparable, and have well-defined ownership, characteristics normally
resemble to real objects. Each NFT may represent a virtual asset or a real
asset, and they are all unique identification code that makes it impossible to
replicate.
Virtual Store
With the metaverse, one will be able to market their clothes on
the platform by creating virtual twins of them that customers can try on their
3D avatars. It is an interactive, efficient, and cost-effective way for
business owners and marketers to test new products and concepts before spending
money on production.
Major brands such as Gucci, Nike, and Reebok have started using
the metaverse as a platform to market their products.
Gaming
If we look back metaverse evolved from online gaming itself. Long
before any of the previously mentioned business models were introduced to the
metaverse, it was already used by the community of gamers in the space to
communicate, trade, and earn money indirectly by selling game assets like gear,
weapons, potions, and, ammunition.
Nowadays, the rise of play-to-earn (P2E) game models has paved the
way for users to earn even more money by playing games.
Use cases of Metaverse
Banking and Finance
From the perspective of banks and other financial service
providers, the obvious option is to provide customers with secure access
to the metaverse (wallet, identity) and to securely store assets in the
metaverse, making them purchasable there, and to use them for payment
purposes. Banks, specifically, must ask themselves which processes, ranging
from payment, and identity services to finance, they could facilitate as a “metaverse
bank” in the future. Virtual bank offices and consulting could be a new form
of interacting with customers – with the potential of fully integrating a
digital experience, including identity, consulting, signing contracts, and
payment. From an asset management perspective, investment products can be
developed for metaverse assets, ranging from digital property to works of
art. The possibilities are endless, and some banks are already exploring
this field.
Hybrid shopping and remote retail with sales staff
Shopping experiences in the virtual world result in product
experiences and services in the real world. Products and services can be
examined virtually, bought, and then used in the real world. Sales staff in the
metaverse can advise their customers and motivate them to buy either in
real-time or by using pre-produced content. Other customers can share their
experiences. In the hotel industry, for example, the metaverse would contain a
digital copy of any hotel. This would enable those interested to get a
realistic but virtual impression of a hotel room or other relevant hotel areas
like the lobby, the restaurant, or the gym, on a 1:1 scale. The same principle
can be applied to the restaurant industry. This use case is therefore ideal for
intensifying the customer journey during the selection and booking phase
Hybrid tours through museums, cultural hubs, and destinations
The metaverse can facilitate live guided tours that are also
hybrid, either remotely or on location. Real people as well as people
represented by robots together experience museums, cultural institutions, and
other destinations. The metaverse could make it possible to spawn into
different rooms much like teleportation. This would enable people to experience
remote but enticing destinations realistically and in real-time as well as
react to real events from the comfort of their own home. This use case is very
helpful in view of the inclusion of people with limited mobility, to create
access to places and experiences that either wouldn’t be accessible to them or
only with disproportional effort. This use case also applies to the attendance
phase of the customer journey.
Concept development for hotels or restaurants together with the
community
New hotel and restaurant concepts can be jointly developed in the
metaverse’s creative hubs, enabling different stakeholders and interest groups
to get involved or track this development and creation process, either
continuously or selectively. This process may include, at an early stage, experts,
specialized planners and other specialists, thus facilitating high planning
security, improved overall quality, and early cost analysis. This use case can
be applied to the entire process along the customer journey.
Digital concerts in the metaverse
Building a metaverse to reinvent live events with game engine
technologies and to use them for live events in sports and music – is
the goal of a joint project between the real-time 3D platform Unity and
Insomniac Entertainment, the electronic dance music division of Live
Nation. The aim is to create a persistent metaverse world for fans of
electronic music.
Relevance of the Metaverse for
society
Opportunities for equal collaboration
Leaps in innovation on the path to the metaverse not only create
new jobs and generate growth but also expand entrepreneurial and social
opportunities. Wherever people network and interact, be it for professional or
private reasons, new opportunities for inclusive products and services arise.
They give people who were previously excluded for a variety of reasons access
to social and economic participation.
AR and VR appeal to our senses much more directly than mere text.
They are also capable of portraying complex issues close to real life.
Realistic simulations will thus be accessible to the broader population.
Immersive technologies offer new accessibility. Shared activities using VR
applications, hybrid concerts, or virtual trade fairs and exhibitions are just
a few examples of a wide range of exciting possibilities that are changing our
everyday social lives and that have the potential to break down the barrier
between distant places.
Metaverse is a collaborative project that many companies,
developers, and organizations around the world are currently working on. All
the stakeholders doing so carry a special responsibility to develop and
implement these novel technologies responsibly. Companies and developers can
only create trust and broad social acceptance if digital innovations are
secure, transparent, and inclusive.
Developing hardware, apps, and security standards for the
metaverse will require accessible, inclusive, and intersectional thinking. This
facilitates taking into account the individual needs of the users and avoiding
possible barriers to use and participation right off the bat. The extraordinary
opportunity to design the metaverse as a space for everyone, which enables
participation, creativity, and social involvement, should be used.
Building a culture of safety and respect
Users must be able to identify the added value of the innovations
in their everyday lives. Above all, this entails secure and transparent
applications that consider their needs. Responsible innovation encompasses more
than adapting technologies in their development to the necessary conditions of
the present. Evaluating and developing them is an ongoing task, one that is
necessary to face up to current challenges. This includes, for example,
establishing joint feedback forums, in which developers and users can exchange
their experiences to learn from undesirable developments. Issues like hate
speech, cyber mobbing, or disinformation have rightly and increasingly been put
in the focus of the public eye in recent years. The immersive merging of the
real and virtual worlds creates new experiences that are particularly new
for young users. Issues of youth media protection as well as data
protection must be considered. We now have the opportunity to address the
developments from the outset, allowing users to decide for they how they want
to configure their digital sphere according to their own ideas.
Simply taking community-created assets without giving would
quickly result in the abandonment of metaverses created by businesses,
especially if people’s needs like recognition, reward, or utility are not found
there. We recommend promoting the creativity of the community and involving
them in decisions (e.g., regarding product development, events, etc.).
Moreover, digital platforms facilitate the development of innovative ideas and
applications worldwide and not just in a few countries with the appropriate
research budgets.
A common path to the metaverse
Today’s exponential growth in the use of digital and immersive
products and services will only accelerate in the years to come. On this
path, social and economic inclusion must be safeguarded and brought
together to comprehensively assess opportunities and challenges.
For social players, the integration of immersive technologies into our everyday lives creates a duty to be aware of their economic and social responsibility. Private companies, in particular, must draw up guidelines that institutionalize a continuous improvement process for their products and applications. At an early stage, they must leverage synergies, bring in feedback, and tackle problems to make sure that the metaverse is a secure and enabling space. Creating the right conditions for this remains the task of every company co-designing the metaverse. Users, too, must be able to contribute. All stakeholders, creators, and users bear responsibility for an inclusive and secure internet of the future. Now is the time to come up with ideas and be vocal about problems or shortcomings. This is the only way that we can make sure to unleash the full potential of the immersive metaverse and do right by our aspiration to create a metaverse for everybody.
PrimaFelicitas is a top Custom software development company focussed on Web2, Web3, Blockchain, and Metaverse Development We have managed to delight our global clientele through seamless engagement and brilliant work ethic. If you are looking to develop a custom application, contact us.
Comments