So, what EXACTLY is a 'Metaverse'?
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So, what EXACTLY is a 'Metaverse'?
Everyone is talking about the Metaverse. But what Metaverse are they talking about?
TL;DR
The ‘Metaverse’ is a concept that refers to a future point in time, where we value our digital presence and identities more than our physical ones.
We’ll use avatars as our digital identities.
We’ll spend most of our time in virtual spaces.
We’ll own, sell property and assets in digital environments.
We’ll trade new currencies (tokens) on a variety of decentralized, digital exchanges, and use these tokens to pay for items and services.
We’ll be able to engage in immersive experiences with people who aren’t there.
Before I begin, I’ll caveat that these opinions expressed are solely my own and do not reflect the opinions of my employer.
Cool, let’s go:
Most people think the ‘Metaverse’ is a place. A virtual place, to be exact.
You can thank Neal Stephenson. He coined the term in his 1992 cyberpunk novel, Snow Crash, where he called the Metaverse a “shared imaginary place, made available via a worldwide fiber-optics network.”
I believe that the concept of a Metaverse is larger than that. It represents a vision of a point in time where we adopt a set of behaviors and use cases.
I credit Shaan Puri for this:
‘The Metaverse’ is a concept that refers to a future point in time, where we value our digital presence and identify more than our physical one.
It’s a bold claim, but it’s already happening.
Here’s what happens in that future world:
🧚🏼♂️ Direct-to-Avatar Economies
We’ll use avatars as our digital identities.
In most cases today, our digital identity is represented by a username. It’s pretty two-dimensional.
In the Metaverse, we’ll be represented by three-dimensional avatars that can do a variety of things. We’ll even put value on designing, customizing, and upgrading these digital avatars.
Examples:
Majority of Fortnite players (70%) spend money in the game, often on improving their avatar’s digital appearance
Nike just bought a virtual sneaker company to expand its footprint
Twitter users are spending hundreds of thousands of dollars on digital images (NFTs) to use as profile pictures
Digital appearances will matter as much as physical ones, if not more.
🌎 Virtual Worlds & Environments
We’ll spend most of our time in virtual spaces.
This may seem ridiculous, but do me a favor and check your Screen-on Time (SOT). How much time are you already spending across your devices?
Virtual worlds—VR or not—will become common to lounge around in. You’ll be able to socialize, work, shop, perform, and do other activities in a virtual environment.
Some may be slightly more advanced, and mimic real-world spatial-audio dynamics, so it feels like you’re there. Others may be similar to the interfaces we’re seeing today.
Avatars will occupy these spaces, and serve as surrogates to our real selves.
Examples:
Club Penguin is a legacy example of this — you can socialize, hang out, and play games with others
Nowhere provides virtual environments for meetings, conferences, and even live comedy shows
Come to think of it, virtual worlds have existed for over a decade now
Virtual environments will become as commonplace as real-world ones.
🏠 Digital Property & Assets
We’ll own, sell property and assets in digital environments.
From virtual real estate, and NFTs, to avatar upgrades—you’ll buy, sell, and trade digital assets like you would in the real world.
Virtual land will mimic the dynamics of the real world. And NFTs will signal ownership, authenticity, and scarcity.
Examples
Nike and the NFL both opened virtual stores in Roblox
The cheapest CryptoPunk NFT is $1.5 million USD (depending on daily fluctuations); these are essentially digital Rolexes
You can buy virtual land—and build whatever you want via Decentraland
Digital assets will be bought, sold, and used in a similar way to physical ones.
💵 Digital Currencies, Payments & Exchanges
We’ll trade new currencies (tokens) on a variety of decentralized, digital exchanges, and use these tokens to pay for items and services.
More alternatives will emerge as options for medium of exchange (i.e. currency) and store of value (i.e. assets and investments).
People will have more access to alternative investments—including ones that emphasize collective ownership. You’ll buy NFTs on one exchange and cryptocurrencies on another.
Blockchain-based investments will be more widely adopted, and organizations, businesses, and creators will have more distribution for financing.
Examples
Blockchain-based payments and trading systems will become the norm.
👓 Telepresence & Extended Reality
We’ll be able to engage in immersive experiences with people who aren’t there.
Extended Reality (XR) combines the ideas of Virtual (VR) and Augmented Reality (AR). XR will allow us to ‘augment’ our real-life experiences and merge the physical and virtual worlds.
You’ll be able to play tennis with someone who isn’t there. Or try on clothes without needing to have them delivered.
Examples
Meta’s vision is a good demonstration of what this could look like
Google is starting to build a team focused on an Augmented Reality Operating System
Microsoft released the HoloLens 2 AR Headset, which helps designers and builders visualize in real-world detail
Doing things with others—remotely—will feel almost as real, removing physical and geographical limitations from collaborative activities.
The ‘Metaverse’ isn’t a place. Just like the ‘Internet’ isn’t a place.
The internet is a network. A world-wide network of a million computers that provides us the ability to experience things. The Metaverse is like that too.
We won’t go to the Metaverse, just like nobody goes to the Internet. We’ll simply be a part of it. We’ll be connected to the Metaverse in the same way we’re connected to the internet.
Thoughts? (Reply to this email)
Further Reading
The Value Chain of the Open Metaverse — Packy McCormick
Digital Art, NFTs, & the Metaverse — Rex Woodbury
Meet Me in the Metaverse — Jonathan Lai