The Metaverse: Clearing Up the Essentials

The metaverse equation; core metaverse concepts

Understanding the hype

The excitement behind the metaverse is at peak levels. Several companies have recently appointed Chief Metaverse Officers or similar roles. Some other key facts connected to the new buzzword:

• “metaverse” has been quoted 700 times in the last calendar quarter of 2021 by CEOs and CFOs
• The metaverse represents a potential $8 trillion to $13 trillion opportunity by 2030, that could boast as many as 5 billion users
• 46% of CIOs say the metaverse is very important to their products and services strategy

What is the metaverse and how do I get in it?

One common misconception associated with the metaverse is that it is a singular digital space that one can access via virtual reality headsets, much like the Oasis in the Ready Player One movie. While the immersive factor in this description stands true, its singularity nature does not.

The metaverse can be better understood when referring to it as the metaverse technologies. Put simply, technology trends like VR, AR, AI and blockchain are converging in new ways to make the metaverse possible and represent the metaverse technologies.

The end output of what the true metaverse is supposed to be, grows and changes with time. But the core features for the time being rely on a digital world that is immersive, persistent and decentralized.

Another interesting point of view is understanding the metaverse as the embodiment of the web 3.0, an upgrade of the internet as we know it. In the words of Meta’s CEO: “… you can think about the metaverse as an embodied internet, where instead of just viewing content — you are in it.”

The evolution of web

However, despite the intrinsic link between them web3 and the metaverse are not the same thing. In the words of Cathy Hackl, globally recognized metaverse: For me, web3 is how people are connected in this future of the internet. Metaverse for me is how you experience it.

Is metaverse the same thing as virtual reality?

While immersive technology and specifically VR is by far the most graspable part of the metaverse and an important building block of it, it must be noted that they are not the same and they are not here to replace one another. VR just powers up the idea of the true metaverse.

Perhaps the confusion comes from the fact that presence and being immersed, two important aspects of VR technology are seen as a must in order to be in the metaverse.
However, this is not the case. The metaverse does not always have to be 3D and immersive.
In fact, the metaverse can be accessed by different computing platforms, not only VR and AR, but also PC and mobile devices.

Entering the metaverse doesn’t necessarily mean having a head/body gear to immerse in virtual reality.In fact according to Louis Rosenberg, renowned XR pioneer sees the Augmented Metaverse (the merger of real and virtual worlds into a single immersive and unified reality) as the future of this technology.

So despite the close ties between VR technology and the XR concept of the metaverse, it is safe to say they are not the same thing.

What are NFTs and how do they relate to the metaverse?

NFTs (non-fungible tokens) are one-of-a-kind digital assets, built on blockchain technology that provide value to their owner. These digital assets can represent anything digital (digital artwork, a digital application, virtual reality assets) and allow content creators and distributors to monetize digital content.

Creating an NFT is usually related to the process of minting, which means that a certificate of ownership and originality is generated via cryptocurrency (usually Ethereum) and sold/granted to the new owner.

NFTs have an important role in the metaverse, as they offer a transaction mechanism for digital assets. These virtual marketplaces powered by NFT transactions have already been leveraged by brands in various industries, Nike being a good example of them.

NFTs are also being used to store digital artwork in metaverses such as Сryptovoxels, powered by the Ethereum blockchain. The FC Francisco Carolinum in Linz, Austria, is one of the players who has put together a virtual exhibition to trace the NFT history in art.

Media companies are also exploring the concept of NFTs as a framework for authenticating data and news, making use of proof of origin.

Takeaway

• Metaverse is not a place but rather a combination of technology trends like VR, AR, AI and blockchain converging in new ways to create and build new ways of interacting with one another and coexisting in a digital world.

   

• Virtual reality is one of the most prominent aspects of the metaverse, however the two concepts are not interchangeable.

   

• NFTs (non-fungible tokens) are one-of-a-kind digital assets built on blockchain technology which offers a transaction mechanism for digital assets.

The metaverse hype is real. Although there seem to be plenty of definitions for the metaverse, some even contradicting each other, it is important to highlight one thing: the dystopian metaverse future is not how we should perceive this technology. Instead, we should leverage it and make the best for our daily interactions and or business. In fact, there are companies already taking advantage of the metaverse for their business. We’ll be talking more on that, in part 2 of this blog.

For more information about the metaverse, click here (DE & EN).

Contacts:

Gersa Tome (PwC AT)
Bernadette Fellner (PwC AT)
Sebastian Egger (Mindconsole) 

Sources:

https://www.pwc.com/us/en/tech-effect/emerging-tech/demystifying-the-metaverse.html
https://www.theverge.com/22588022/mark-zuckerberg-facebook-ceo-metaverse-interview
https://www.gamespot.com/articles/mark-zuckerberg-outlines-his-vision-for-a-ready-player-one-like-metaverse-and-it-sounds-wild/1100-6494443/
https://www.financemagnates.com/cryptocurrency/news/metaverse-economy-has-potential-to-reach-13-trillion-says-citi/
https://www.forbes.com/sites/forbestechcouncil/2022/03/11/what-is-the-role-of-nfts-in-the-metaverse/?sh=31d605ac6bb8