It is difficult to resist the vision offered by Meta (formerly Facebook) and other platforms of the virtual world. A digital utopia that can transform lives in multiple ways – be it the way we socialize, work or even stay healthy – is hard to turn down.
This is especially true considering that these platforms are described as the biggest technological disruption to human life and a multi-billion dollar opportunity for businesses. However, some are skeptical and believe that this is all too good to be true, at least for now.
The technological architecture that allows this promised immersive experience to come to life is missing. Take the example of the live performances used in the Facebook metaverse video in October. The idea of experiencing those authentic real-world sensations through headphones seems far-fetched. What seems even more unlikely is that a virtual reality headset will become a must-have in the home.
Most likely, advanced VR equipment will be needed to allow us to immerse ourselves in these virtual worlds. However, customers have already shown resistance to buying the expensive and bulky virtual reality headsets and other equipment. The first Oculus headset was released more than five years ago. It has not approached the same widespread adoption as other more compact and convenient devices, such as the mobile phone or the laptop.
Expensive equipment is not a necessity for the foundations of the Metaverse. Accessibility is the key to start incorporating users to any technological innovation.
Pokémon GO is the perfect case. The augmented reality game had users go out into the real world to collect the titular fictional creatures. It was successful not only because of its attractive gameplay, but because of its accessibility: anyone with a mobile phone could participate.
Use cases and the metaverse
We have been seeing accessible metaverse platforms for a long time. Second Life was one of the first, launched in 2003. But in its 19-year history, it hasn’t come close to the number of users predicted by Meta.
Decentraland is a newer platform and has taken off since the Meta announcement. It is capturing the imagination of businesses by incorporating blockchain and economic elements such as NFTs and its MANA token.
With customers confined at home by the global COVID-19 pandemic and the decline of brick-and-mortar stores, Decentraland is giving brands an opportunity to reinvigorate audience engagement.
Instead of just filling a virtual basket, companies have creatively tapped into these existing metaverse platforms. JPMorgan bought virtual real estate and opened its own metaverse salon. Suddenly, it doesn’t seem so far-fetched to be able to create a real bank account in a virtual world.
There are more subtle tactics to get users talking about a brand. For example, the pharmaceutical giant Pfizer, which gave vaccinated players a blue badge for their avatar.
Not only the marketing team gets their hands dirty in these virtual worlds. There are many opportunities for sellers to monetize content and profit from the metaverse.
Blockchain technology has been waiting in the wings for this. NFTs are giving real-world value to digital assets and lend themselves perfectly to the Metaverse. Artists can trade virtual paintings, architects can sell digital real estate, engineers can auction vehicles based on the Metaverse.
Currently, fashion is the industry that generates the most interest. If the metaverse becomes a staple of modern life, users will want to look good. Haute couture brands such as Dolce & Gabbana, Gucci and Louis Vuitton have sold NFTs, with most fetching high prices.
E-commerce giants are also jumping on this trend and creating a healthy and competitive space. Nike bought the virtual shoe company RTFKT in its attempt to build a brand powered by the Metaverse.
Acquisitions can be crucial for large companies to survive in this rapidly changing virtual environment. Having a young, capable and trendsetting team could be the difference between sinking or swimming.
not without problems
Although the rules of the metaverse have yet to be proposed, let alone agreed upon, some of the problems that have plagued the internet are already beginning to affect our shiny new reality. The newly released Horizon Worlds is Meta’s first metaverse project for the Oculus VR headset. Currency.com has already reported on the sexual harassment taking place in this metaverse, as well as the dangers lurking in the corners of other platforms.
Toxicity on social platforms is nothing new, but resolving it in the metaverse is going to be crucial to making it a digital utopia. Businesses, and more importantly users, will find it hard to buy into a future ruled by hostile virtual realities.
Meta has already implemented a solution in the form of a “safe zone” that can act as a protective bubble where no one can touch or talk to a user. It’s also making blocking others as easy as possible.
Although Meta has laid out these general plans for community moderation, it has not yet detailed suggestions for policing a large-scale metaverse. Regulating hate, harassment and freedom of expression could be its biggest stumbling block.
Horizon Worlds feels like an experiment testing the current capabilities of the metaverse. There is no public timetable for the release of the full metaverse of Meta or any other similar platform. So, in theory, it could be years or even decades before the metaverse becomes a part of everyday life.
This hasn’t stopped companies from announcing metaverse plans or settling on existing platforms, be it JPMorgan, Disney, Adidas, Coca-Cola or Gucci. But the vague delivery times evoke comparisons to the dot-com bubble and its equally long promises of sales. Without the delivery, there is a good chance that this too will become a bubble, with the consequent risk that it will end up bursting.
With the dust of Facebook’s rebranding yet to settle, it’s too early to talk about it. Sure, the metaverse may have a place in the world, but it’s still far from the immersive, idyllic vision being sold to us by those hoping to cash in on it.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, readers should do their own research when making a decision.
The views, thoughts and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Stephen Gregory is the General Manager of Currency.com in the United States, where he is responsible for developing and managing the platform’s growth strategy in the United States and Canada. Currency.com is a high-growth cryptocurrency exchange that in 2021 reported a 343% growth in its customer base, making it one of the fastest growing cryptocurrency exchanges in Europe.