The Metaverse? What's that supposed to be?

The vision of the metaverse is spreading rapidly and being developed by some of the most ambitious people in the technology industry.

It describes a new reality that, unlike today's VR experiences or the Internet, can keep pace with our physical reality. It is neither a purely virtual nor a physical reality, but something more. A reality that connects the physical with the virtual on a meta-level. Like our real life, it cannot be paused, has its societies, communities, and an autonomous economy.

How can I imagine the metaverse exactly?

What exactly? Not yet.

But in some ways, the postulated metaverse is comparable to today's Internet. Today's Web 2.0 already exists:

• self-contained communities that are independent of the physical world
• a (not yet fully) independent economy
• Connections to the physical world - keyword IoT

The Metaverse is intended to take all this to the extreme and create a completely independent environment that interacts with the outside world and is of even greater global significance than the Internet is today.

Maybe in a few years, you will be able to buy a virtual property in a VR application with a cryptocurrency. But thanks to the Metaverse, you will be able to use that value not only there, but also in other places - perhaps even in the physical world.

Many people are already talking about the metaverse in existing solutions. "We have developed a metaverse for mobile phones. But these are dubious marketing promises. It is likely that many of them will later grow together to form a large network - the Metaverse. However, it is important to understand that no one company can build the Metaverse. A network of solutions must be created, all connected in a decentralized way. The Metaverse is the decentralized network of users and experiences, not a single solution.

It's all virtual - why is it valuable?

Cryptocurrencies are used to pay in the metaverse, and NFTs are one of the currencies traded. Just like crypto coins, virtual properties and objects have a monetary value. Why is that? It's all purely virtual, with no physical existence apart from electron positions on hard drives. So where does the value come from?

For many, the concept of cryptocurrencies and virtual value seems particularly unintuitive - and understandably so. Abstract, intangible things are always difficult to understand, and when it comes to money, and therefore trust, skepticism is completely understandable. Nevertheless, virtual things can be just as valuable as physical ones.

Every other mobile game is a good example of this. In the real world, the virtual materials you need to build virtual houses or expand your imaginary armies have no value. Nevertheless, the industry has become huge and extremely profitable recently. Because players assign value to these digital resources. Because they are willing to pay for them with their money. Value is created not because something inherently costs a dollar, but because we would pay a dollar for it. Apart from the fact that dollars (and euros, ...) are only valuable because we have agreed on them.

Virtual values can be just as real as values traded on the stock exchange. Because we find them valuable.

The Internet belongs to all of us

In theory.

In practice, however, it is controlled by corporations such as Alphabet, Meta (formerly Facebook), Microsoft and Amazon, which have rightly come under increasing criticism lately. These companies are taking advantage of our belief in a collective, independent Internet. Why are they doing this? Because it's incredibly profitable. Usually, we don't even realize that billions are being made in the background.

When the visionaries discuss the Metaverse being even more profitable than our current Internet, it's easy to see why companies like Microsoft and Meta are already investing in it and want to help shape it in a big way.

However, the metaverse is also likely to bring some unpleasant things with it. This is already described in the book "Snow Crash" by Neil Stephenson, from which the term "metaverse" originates. Just as the Internet is dominated by corporations today, the Metaverse will be dominated by corporations. By creating a new reality that attempts to override everything that has existed before, institutions such as states are likely to become less and less important. The system is based on one measure above all others: profit. Digital currencies and for-profit corporate states allow for unbridled capitalism and exploitation for of a few big players.

Therefore, it is of central importance to prevent this development with innovative ideas. Corporations should be directly limited by the system; there must be rules that, like physical laws, inevitably keep everything and everyone in check. Blockchain, the cornerstone of Web 3.0, cryptocurrencies and NFTs, is already doing this. Without blockchains, the metaverse doesn't work - everyone has to abide by what the technology dictates.

State of Play - Where are we?

What technologies are being used for the Metaverse?

The main technologies in the Metaverse are Augmented Reality (AR) and Virtual Reality (VR). AR and VR are the interface, what the user experiences when they are in the metaverse. This makes things like highly optimized 3D rendering increasingly important to the technology industry. The metaverse must also be accessible on mobile devices and in browsers or over the Internet, where processor power and data transfer speeds are significant limiting factors. Live camera tracking technologies and hardware such as LIDAR scanners are also becoming increasingly significant. Since image tracking is largely based on AI, development in this direction is also crucial.

Blockchain is also a buzzword at the moment. It is a highly complex and fascinating technology that will be indispensable for the metaverse, Web 3.0 and our future world in general. Explaining blockchain is beyond the scope of this article, but the technology allows for decentralized and highly secure data traffic. Cryptocurrencies, for example, are based on blockchains, but decentralized data storage is also in the works, which would mean that users would no longer be dependent on companies like Google for their data.

Who are the big players? And what are they doing?

The idea of the metaverse and AR & VR solutions is basically of interest to all operators of large social media platforms. The possibilities and applications are simply more obvious in this area. But any tech company that wants to be future-proof would do well to get involved. As described above, the Metaverse will be disruptive - things will change dramatically. You should want to be a part of it.

Meta

The fact that Zuckerberg's company is interested in the metaverse became clear with the name change from Facebook to Meta. The company is currently working on a family of VR applications called Horizon. These include Horizon Worlds, Horizon Venues, and Horizon Home. As you might expect from the social media giant, the focus is on social interaction: phone calls, virtual game nights in a friend's digitally decorated living room, and more. Well-known VR goggles developer Oculus is also a Meta subsidiary.

Microsoft

Since January 2022, Microsoft has been trying to buy the game development studio Activision Blizzard. An offer of 68.7 billion dollars is on the table. Microsoft wants to use the game studio to create a metaverse experience, or at least part of it. The deal has not been finalized yet, but the shareholders on both sides are very much in agreement. Everything is waiting for the US antitrust authorities.

Epic Games

Fortnite developer Epic Games has managed to associate its name with the term metaverse at a very early stage. Fortnite is an attempt to blur the lines between video game and virtual platform. The so-called party worlds have already hosted virtual concerts by Ariana Grande, Travis Scott and Marshmello.

Sony vs. Microsoft

The two companies have long been fierce competitors with their Xbox and PlayStation consoles. While Microsoft is interested in acquiring game developer Activision Blizzard, Sony is approaching Epic Games along with the holding company behind LEGO. The two are currently going head-to-head on their way to the metaverse.

Tencent

Tencent is the parent company of the social network WeChat, which is run out of and used primarily in China. But the company is bigger than you might think. Behind the scenes, it has relationships with companies and franchises such as League of Legends, Spotify, Tesla, Activision Blizzard and Universal. In January 2022, the giant wanted to buy Xiaomi's gaming smartphone brand Black Shark. Black Shark could support the development of VR and metaverse solutions from the hardware side. The acquisition never materialized, but the intention shows the giant's interest in the metaverse.

Naver

Naver Corp. is a South Korean tech giant best known for the largest search engine in South Korea, "Naver". The company is developing a social network that could, and apparently will, develop in the direction of the Metaverse in the future. More about "Zepeto" later.

These virtual worlds already exist

Decentraland

In Decentraland, users can buy virtual land with NFTs and then design it. Payment is made in Mana, a cryptocurrency based on the Ethereum blockchain. Decentraland has approximately 300,000 users per month. These include companies such as Coca-Cola, JPMorgan and Samsung, all of whom have virtually designed properties to view.

The Sandbox

The Sandbox is similar. Here you can sell, trade and rent virtual properties and play user-created mini-games. The K-pop scene is particularly active here.

Zepeto

Zepeto is currently more of a 3D social network than a true metaverse application - there is no connection to cryptocurrencies, NFTs or other blockchain solutions. However, the platform already has about 20 million monthly users. Similar to Ready Player Me, the personalization of one's avatar is particularly important, as this is how one appears to all users in the network. Zepeto allows users to communicate, play together and visit virtual worlds with various themes. Brands such as Gucci and Nike are represented with virtual clothing and makeup.

Meta Horizon

Meta Horizon includes Horizon Home and Venues, each with a slightly different focus. Essentially, they are all about social interaction and building connections and communities.

Games like Axie Infinity, Roblox, etc.

There are also several games where cryptocurrencies, active trading and social networking are an integral part of the concept, but which do not yet offer a link between the virtual and physical worlds. These include the crypto-affine RPG Axie Infinity, as well as classics like Roblox.

Where is the metaverse headed? A look into the near future.

The Metaverse will certainly bring considerable changes. But even before that, a lot will change along the way. Soon we won't be sitting in offices, but with our colleagues in virtual rooms in the metaverse. Sounds convenient, but it also takes us away from all the physical components of interpersonal contact.

Even the Romantics of the late 18th and early 19th centuries believed in humans as part of nature and their environment. And how important that is for people and their well-being.

The metaverse works against that.

Opportunities for users, businesses & humanity

But if we are aware of these dangers, the metaverse also offers incredible opportunities.
In particular, international networking, which will become much more direct and tighter as a result of the metaverse, will have a positive impact. This allows for a "true globalization" that has been held back by physical limitations. Exchange and trade will become more active and diverse.

Closer connectivity will also make digital collaboration easier, more efficient, and more enjoyable. More and more people are already working remotely, from home or a beach in the South. With VR video chats and AR visualization technologies, these working relationships will become even easier and less complicated.

We like to spend money on social media. This can already be seen on platforms like TikTok, whose influencers are so popular with marketing agencies because the creator's standing in their community can generate impressive sales. It will be the same in the metaverse. This is good for business, good for the independent economy, and incentivizes technology development.

In the metaverse, blockchain technologies will be the driving force of the entire system. This includes the currencies that will be used to pay in the metaverse and the NFTs that will be used to trade. This will make transactions and communications private and secure, and content tangible and interactive. Instead of watching TV, kids can interact with their favorite superheroes in the metaverse. On virtual sites, companies already have the opportunity to create places where people want to be and to present themselves in a positive and targeted way.

There is still much to criticize about the vision of the metaverse. With such plans, we need to be cautious about what we are facing as a society. Cautious about exploitation, discrimination against developing countries, lack of privacy, and so on. But the metaverse is coming. We need to use innovative ideas and sound technology to make the metaverse a fair and safe place. That way, we can all benefit from the opportunities the virtual world has in store for us.

Get some more information!

Matthew Ball - The Metaverse Primer

Matthew Ball - The Metaverse - Overview

Alan Smithson - The Metaverse Manifesto

How to Geek - There is no Metaverse yet