The ascension of metaverse to the forefront may owe a lot to Facebook’s current endeavors. However, people keeping tabs on technological progress will admit that it has been a while since the concept evolved from a sci-fi novelty to a feasible blockchain technology.
Diverse application sectors drive the metaverse R&D forwards as the uncanny mix of VR, AR, and the internet is set to become a game-changing future technology. A Grayscale report projects the upcoming technology may grow to present global market opportunities worth over a trillion dollars in annual revenues.
The report, titled “The Metaverse, Web 3.0 Virtual Cloud Economies”, looks forward to the scopes and opportunities brought forward by Metaverse development. It highlights potential revenue opportunities in the digital gaming-lifestyle crossover powered by blockchain infrastructure.
Projections estimate virtual gaming revenues may grow and reach $400 billion by 2025, and the majority of raised revenues will come through in-game spending rather than premium versions. For a fair analysis, gaming revenues in 2020 amounted to $180 billion.
The term Metaverse was first used by author Neal Stephenson in his 1992 sci-fi novel Snow Crash. Several futurists believe that virtual technology will likely present a scenario similar to the Ready Player One environment.
Established metaverse attributes include both physical and virtual worlds working around a functional economy. Another key feature is transportation- the users will be able to freely migrate from one world to another, preserving their personal items and ‘avatars’, whenever they desire.
There are two major factions in the meta-vision- Private and Public.
Facebook’s Meta is an example of a privatized metaverse where the organization monitors and regulates what people socialize, grasp, cooperate and play. The association with VR and AR happens through headsets and glasses. Facebook’s attempts to monopolize Web 3.0 through this technology have however met criticism from the global blockchain community.
Crypto communities are working together for building and having collective ownership of a virtual universe. A public metaverse is a unified vision of multiple decentralized digital ecosystems which permit free migration of people between reality and the virtual world.
Built upon open and interoperable blockchain architecture, the public ecosystem features crypto innovations such as DeFi payment options and NFTs for digital collectibles with actual value. DAOs, or Decentralized Autonomous Organizations, govern and own the public metaverse.
On deeper analysis, it is hard not to marvel at the propositions- the metaverse will transform our approach to interaction in the digital world. This will especially be a boon for creators, artists, and gamers. Like non-fungible tokens or NFTs, the virtual universe has the potential to reinvent the economy for digital creators.
And not only a place for entertainment and commerce. The metaverse can also function as a virtual workplace as a potential successor to the internet, powered by decentralized blockchain applications.
With further development, demands will arise for permissionless identities and high-speed payment transfers. Cryptocurrencies provide the ideal platform for carrying out these financial transactions.
Blockchain organizations are creating virtual ecosystems with crypto integration to make constructions such as virtual casinos or theme parks. This allows them to monetize their possessions. Cryptocurrencies are the medium of exchange in the metaverse. Popular options like MANA can even be traded in popular crypto exchanges.
NFTs also offers users complete ownership of game attributes, including their avatars, in-game collectibles, and even digital land plots. A 259-parcel estate in the virtual Decentraland sold as an NFT for $900,000. In near future, people will be able to trade in virtual commodities from separate games or universes at interoperable marketplaces.
It is inherent that cryptocurrencies are essential for the metaverse to survive and thrive. It is hard to predict what the virtual world has in store, but any trading requires a medium of exchange. Crypto serves as the perfect solution for virtual world requirements. Innovations in blockchain, cryptocurrencies, VR, and AR will be pivotal to the growth of the metaverse.