WHAT IS METAVERSE?
The metaverse is an evolving 3-D digital environment that enables life, like personal and professional encounters online by utilizing virtual reality, augmented reality and other cutting-edge internet and semiconductor technology.
If you've ever performed a google search for the term "meta verse", you are not alone. The number of internet searches for the term rose by 7,200% in 2021. Once people get idea the majority of them are on board: according to recent Mckinsey study, roughly 60% of consumers are enthusiastic about the idea of moving common place activities like dating, working out , and shopping to the metaverse.
Private capital ,meanwhile, is placing significant bets on the metaverse , so its not only individuals who are meta-curious . According to reports, business involved in the metaverse raised more than 10 billion USD in 2021, more than double what they did in 2020. More than 120 billion USD has already entered the metaverse in 2022. According to the most recent Mckinsy study, by 2030,the metaverse might produce up to 5 trillion USD in value. Its a chance that's too large to pass up.
Diverse people have diverse interpretations of the metaverse. Some people think of it as a social media playground. Others believe it may function as a commercial facility for clients and business.
Both interpretations, in our opinion, are valid. Value creation in the metaverse, a new report from McKinsey based on interviews with 13 senior leaders and metaverse specialists and surveys of more than 3,400 consumers and business executives, was published in June 2022. Based on this study, we believe the metaverse is best characterised as an evolution of the internet of today—something we are actively involved in rather than something we mostly gaze at. The use of bitcoin, artificial intelligence (AI), augmented reality (AR), virtual reality (VR), spatial computing, and other digital technologies are combined and expanded. Additionally, the "enterprise metaverse" might come together in a way that opens up even more possibilities, going beyond its current use as a platform for online communication.
At its most basic , the metaverse will have three features :
1. A sense of immersion.
2. A real-time interactivity.
3. A user agency.
And ultimately, the full vision of metaverse will include :
1. Platforms and devices that work seamlessly with each other.
2. The possibility for thousands of people to interact simultaneously.
3. use cases well beyond gaming.
Future expert Cathy Hackl argues that the metaverse is not about running from reality. It is instead about "embracing and augmenting it with virtual content and experiences that can make things more fulfilling and make us feel more connected to our loved ones, more productive at work, and happier." Community is, in Brian Solis' words, "what the metaverse is really all about," according to Salesforce's global innovation evangelist. the benefits of being a member of this community. The part you can play in this community as a user to make yourself feel like a stakeholder rather than a "user".
Additionally, it appears that the metaverse is inevitable. Technology expert and author Matthew Ball predicts that "we're going to see more brands, more investment, and more users in all things 3-D and real-time rendered." There is "no reason to believe that time spent online, the number of smartphones in use, and the importance of digital to our economy will reverse." These are all trends that have been present for several decades.
WHAT ARE AR AND VR ?
Simply simply, augmented reality (AR) employs technology to add to or enhance a person's perception of reality with a digital image. You've used AR if you've used the IKEA furniture installation software or Pokémon Go on your smartphone. Based on the actors' actual whereabouts on a map, the game allows players to capture them. It has both a physical and a virtual component.
Advanced AR headsets are assisting the metaverse in delivering a level of virtual digital experience that is more realistic than the online gaming platforms that have been around since the early 2000s (and were the early forebears of the metaverse), where people could create avatars through which they could have semi-lifelike virtual experiences. These technologies include 5G, edge computing, and cloud capable of delivering mega volumes of data.
The actual environment is not a part of virtual reality (VR), on the other hand (apart from the handset or other equipment like a helmet or sensor-equipped gloves). Users can interact with a computer-generated simulation they enter in virtual reality (VR) in a way that makes it seem real. Though virtual reality (VR) technology is employed in a variety of different applications besides entertainment, you may be familiar with it through videogames.
Here are some examples of how AR and VR can be used:
1. In immersive ideation for product development.
2. During design to value(DTV) development.
3. In the "Creative economy"(Art, Journalism, Music , etc) by offering opportunities to create transformative experiences by promoting new feelings, skills and understanding.
4. In sports and entertainment ( fans can watch the 360 degree replays)
You may also come across the term "mixed reality". That typically refers to circumstances where both AR and VR are present. You can engage with a virtual environment using components of the actual world while using mixed reality. To use a video game as an example, if you were wearing a headset and playing a mixed-reality game, you could theoretically pick up something off your desk or coffee table and used it in game.
WHAT DOES THE METAVERSE CONSIST OF?
Ten layers make up today's metaverse, which are divided into four groups: content and experiences, platforms, hardware and infrastructure, and enablers. Here are a few illustrations of each:
Content and experiences :
1. Content- Developed by users , creators and Developers- enriches metaverse experiences.
2. Applications tied to specific metaverse use cases, such as learning or events.
3. Virtual worlds where groups can gather, interact and create.
Platforms :
1. Platforms that facilitate access and discovery of content, experiences, and apps.
2. Platforms designed for creators of 3-D experiences.
Infrastructure and Hardware :
1. People interface with the metaverse via devices, operating systems(OS), and accessories.
2. The metaverse is powered with underlying infrastructure such as cloud computing, semiconductors, networks and more.
Enablers :
1. Security, privacy and governance are critical for the metaverse to function well and fairly.
2. Tools and apps that manage digital identity.
3. Tools to access the metaverse economy via payments and monetization.
WHAT TECHNOLOGICAL ADVANCES WILL DRIVE THE DEVELOPMENT OF A METAVERSE?
Rapid technical advancements promise to open up future metaverse experiences and interoperability between realities, just as blockchain has energised the decentralised creative economy. Users would be able to process vast worlds on mobile devices once 5G is fully implemented. Other developments that will aid the growth of the metaverse include the following:
1. Back end engines will knock down barriers to creation , enabling wider audiences to create advanced games and experiences. This will facilitate a shift from 2-D internet spaces to fully immersive experiences.
2. Edge computing will drive the computing power required to run the metaverse. Edge computing enables data to be captured, stored, and processed locally rather then in the cloud, solving problems of limited bandwidth and latency.
3. Hardware devices will merge the physical and virtual Oculus Quest 2 headsets in 2021, and new devices including gloves and body suites are gaining traction as well.
4. Software development drives metaverse applications on top of infrastructure.
It's critical to remember that current technology is insufficient to fully exploit the metaverse's potential. Infrastructure improvements will be needed in the computation, network, and interface hardware.
IS THE METAVERSE JUST A FAD?
It's typical to hear the metaverse referred to as a fleeting fad that will soon burn out. We don't know how this technology will develop, but we do observe a lot of customer interest and interaction, which suggests a fundamental shift in how people utilise internet technology.
The shift has already occurred. More than 20% of people predict they will spend more time working, reading, exercising, and buying online in the future, according to a recent McKinsey survey. Additionally, 10% of people have already engaged in AR or metaverse dating, and the majority preferred it to the real-life option.
Here are six reasons the metaverse is here to stay:
1. Larger and larger virtual worlds are possible thanks to ongoing technology advancements, such as those in processing power and large-data operations like graphics rendering. As was mentioned, the quick uptake of 5G is making it simpler for users to access these worlds on their mobile devices. Finally, hardware production costs for AR and VR are decreasing, and new products like haptic bodysuits and gloves are gradually hitting the market.
2. Tech companies have made huge investments to build the metaverse. Companies big and small are increasingly keen to participate.
3. Although gaming in the metaverse is already commonplace, more use cases are opening up access to it. As well as corporate applications like staff training and team collaboration, immersive retail, sports, and educational experiences are now available. Seoul, South Korea's capital, even declared the establishment of a virtual mayor's office.
4.Online shopping is now commonplace. Similar to the buying and selling individuals are accustomed to, metaverse commerce uses cryptocurrencies instead of fiat money. The cost of entry will also decrease as cryptocurrencies become more widely used.
5.Consumers in Generation Z are becoming more financially mature. Compared to millennials or older generations, they are more familiar with and at ease with virtual worlds, transactions, and goods.
6. Influencer marketing's emergence is positive for the metaverse. These creator-users will likely contribute a large portion of new and interesting experiences.
One more thing regarding the metaverse's future potential: According to McKinsey, consumer and business use cases of the metaverse might earn up to $5 trillion by 2030. We're decisively leaving the realm of trends as momentum amounts to trillions.
WHAT DOES GAMING HAVE TO DO WITH THE METAVERSE?
Metaverse is often associated with gaming, and for good reason. The so-called "proto-metaverse," or the metaverse that already exists, is fed by gaming. The gaming industry outpaces both the music and film industries combined, with more than three billion users worldwide and a market capitalization of more than $200 billion.
However, the fully developed metaverse won't be limited to video games. "I see gaming as the on-ramp," Cathy Hackl explains. You can't avoid mentioning game engines like Unreal Engine or Unity while discussing some of those enabling technologies or the required infrastructure.
In actuality, "use cases beyond gaming are not just in the future," according to Kavya Pearlman, founder and CEO of XR Safety Initiative. They've already begun to appear. There will likely be more to the metaverse than "gaming 2.0." The amount of money spent on virtual items found in games is one instance that demonstrates the momentum. Spending on these was about $5 billion in 2015; by 2021, even when nonfungible tokens (NFTs) are excluded, that amount will have increased to $60 billion or $70 billion.
Why the increase? According to technologist and author Matthew Ball, deeper societal changes are taking place in addition to technological advancements (in internet penetration, latency, and graphics processing units). "This idea that we've thought of for decades is now a little bit more tangible, even if in the virtual sense," says Ball. Every day, hundreds of millions of individuals connect to these ecosystems. There are many of the most illustrious businesses on planet expanding, and there is already and soon will be hundreds of billions of dollars in trade.
Customers are starting recognize the metaverse as more than just a place to play. Social gaming in AR or VR ranked tenth on respondents' lists of immersive digital activities when McKinsey asked consumers what they could be interested in in the future. These activities included immersive shopping, learning, travelling, and socialising.
HOW WILL PEOPLE EXPERIENCE THE METAVERSE?
The pandemic sped up the acceptance of virtual interactions, and the metaverse is designed to bridge the gap between the real world and the virtual one through trade. Brands are already opening stores, games, and online events in the developing fashion and retail metaverse.
Future metaverses are probably going to be considerably bigger. The introduction of 3-D environments and graphics-based computers, according to Ball, "will change many of the technologies, standards, conventions, and monetization models." And it might have a long-lasting effect. "There will be a significant generational shift. Most importantly, it will affect a lot of the categories that we had long thought would change as a result of mobile and the internet but haven't.
The metaverse is already being used in business by some organisations. Examples of actual-world metaverse uses are provided below:
1. You might go to a virtual concert or event for entertainment: During the pandemic, Lil Nas X had a performance on the online gaming platform Roblox.
2. As we move towards shared experiences and virtual locations, commerce is changing. Around 79 percent of consumers who use the metaverse have purchased anything, mostly to improve their online experience, according to McKinsey study. Virtual-to-virtual trade happens frequently, such as when a Fortnite player buys V-Bucks to buy items in-game. L.O.L Surprise!, a toy manufacturer, created card packs with QR codes that can be scanned to open NFTs and virtual experiences. Physical-to-virtual transactions are also being investigated.
3. In the field of medicine, Johns Hopkins Hospital recently used augmented reality (AR) displays to perform surgery on real patients, improving task execution to new levels.
4. Imagine being able to virtually experience being the magma that is expelled into the atmosphere in place of building a papier-mâché model of a volcano. Educational providers are developing courses and materials that enable teachers new ways to express themselves and interact in classes.
5.VR is being used in heavy industries and other contexts to assist individuals learn new vocational skills, like fixing trucks or other equipment, and in some circumstances, this significantly reduces training time. Additionally, people are employing augmented reality (AR) for remote support in field operations, which might be even more fascinating when businesses start using the data produced by this process.
6. Brands have made strides in the fashion and luxury industries. Consider Decentraland's Metaverse Fashion Week in March 2022, which drew companies like Dolce & Gabbana, Estée Lauder, and Etro and attracted substantial industry interest. 19 million people visited the Gucci Garden after it opened in the Roblox gaming metaverse in 2021. Or take a look at brand-new business models for virtual fashion, such those based on technology that enables online showrooms or 3-D virtual runways.
7. NFTs, which are still in their infancy, are a new asset class in the financial services industry. According to some accounts, loans have already been collateralized using NFT value, and other moves into the market have already started.
8. Concepts from the metaverse may also be used to create more effective and productive systems. Consider BMW, which has a production line for all-electric vehicles that operated as a simulation for six months. Before deciding on the final layout of the plant, one-to-one scale virtual automobiles were constructed.
ARE THERE METAVERSE RISKS?
Despite the metaverse's potential, there are nonetheless dangers. As Charlie Bell, Microsoft's executive vice president of security, compliance, identity, and management, noted in a recent blog post, "The problems of yesterday's and today's internet—impersonation, attempts to steal credentials, social engineering, nation-state espionage, inevitable vulnerabilities—will be with us in the metaverse."
Similar remarks are made by Rob Lowe of LEGO Ventures: "In the same way that you wouldn't have a child walking alone after midnight in the middle of Soho, you wouldn't want the same thing to happen in the metaverse."
Here are some other concerns to keep in mind :
1. Keeping data and privacy concerns, as well as legal requirements and user rights, at the forefront.
2. Guaranteeing that the metaverses being constructed are fair, secure, and sustainable, keeping talent and diversity concerns in the open, and minimizing technological biases.
3.Dealing with and eradicating abuse, harassment, and false information.
HOW CAN BUSINESS LEADERS PREPARE FOR THE METAVERSE?
According to McKinsey study, simply avoiding the metaverse could put you at a serious competitive disadvantage. On how executives and other business leaders might get ready for the metaverse, metaverse specialists provide the following advice.
Square Enix CEO Yosuke Matsuda suggests:
1. First of all, resist the temptation to limit the metaverse to a single concept. According to the CEO, "We're trying not to define the metaverse so rigidly that it limits the creativity of creators."
2. Think locally and globally. There is a lot of potential for the metaverse to address social issues. For instance, the Guardians of Metal and Concrete game from the Whole Earth Foundation crowdsources information on the state of the infrastructure so that repairs can be undertaken immediately. Regarding the game, Matsuda stated, "I'm extremely intrigued in the concept of blockchain as an incentive mechanism. It uses blockchain incentives to attempt and use games to solve social problems. This is creating a world of new opportunities.
LEGO Ventures managing director Rob Lowe suggests:
1. Have no qualms about idealism. The goal with the metaverse is "for the future to become as open as the internet was when it was first launched." That, rather than the notion of unique, compartmentalised experiences, is the kind of promise he made about what the metaverse of the future might be for everyone.
Futurist Cathy Hackl recommends:
1. Learn about the metaverse. And share that information with your teams.
2. Think carefully about how you interact with or enter the metaverse. For instance, after setting up a marketing activity, you might need to stand back and think about a comprehensive approach.
3. Be sure to search within for talent. Think about who in your organization has the knowledge necessary to start forming teams and thinking about the metaverse right now. This might include innovation teams who have worked on AR and VR for years and are adept at thinking spatially and in three dimensions. Rising leaders who are "crypto natives" may also be involved: "Sometimes the smartest person in the room might be the youngest person in the room," adds Hackl.
Richard Ward suggests:
1. One action without a second thought? Engage employees that work in the field of drawing at your organisation, such as graphic designers, marketers, product designers, and process engineers. They might already be working with 3-D tools, so you might already have the foundation for testing out metaverse features that can be developed and presented to customers, employees, and other stakeholders.
2. Start experimenting by getting to know the technologies. "If your children own a VR game, especially one that is multiplayer, join them on the journey and see what all the fuss is about. Consider it from a systems standpoint and consider issues like: What decisions do players make in the games? Why are people making this decision? How are they assessing these issues and discussing them?
The metaverse's future is uncertain, as is our ability to fully comprehend all of its potential uses, advantages, and drawbacks. Despite being virtual, this new territory has tremendous potential.
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