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Published on 07/02/2023
What seemed remote just two decades ago is now a reality: the metaverse has become one of the biggest bets for investors in the coming years. Perhaps that is why even a cutting-edge technology company like Facebook has recently decided to reinvent itself as Meta. In total, Bloomberg Intelligence estimates that by 2024 the size of the metaverse market will reach $800 billion.
What is the metaverse? The origin of the concept
To describe what the metaverse is, a first approximation could be what is recreated in the movie 'Ready Player One' (2018). In Steven Spielberg's work, a virtual universe is recreated in which we humans transform ourselves into avatars to participate in video games of all kinds.
Reality is not so far from fiction: the metaverse is a virtual universe that extends the physical world into the digital one, either with augmented reality, avatars or virtual interfaces. The only difference, perhaps, is that it does not only encompass video games or entertainment in general. The metaverse we are moving towards is an economic system in itself, in which companies can operate and in which anyone can even work.
The metaverse is a virtual universe that extends the physical world into a digital one, either with augmented reality, avatars or virtual interfaces.
However, the concept of metaverse is somewhat older. It first appeared in 1992 in the novel 'Snow Crash' by Neal Stephenson. It describes a kind of collective virtual space converging with reality. And, as in 'Ready Player One,' the entry channel is a pair of glasses that allow you to appear as an avatar in the virtual world. Transposed to contemporary times, in recent years we have seen different expressions of this idea: from the augmented reality of phenomena such as Pokémon Go, to VR glasses with which to interact with people from all over the world in a virtual environment.
But these are not the first attempts to create a metaverse. Platforms such as 'Second Life' (2003), which were literally born as a virtual space to live a parallel life, already tried it in their day and failed. Essentially, because the technology of the time greatly limited the possibilities of interaction.
Perhaps that is why, although Second Life is still active -and even has an extensive marketplace and its own currency-, today there are latest generation video games like 'Fortnite' capable of better reflecting what a supermassive metaverse entails. In it, the 'battle royale' competition is no longer even the main reason to join. It has become a social phenomenon, with an almost limitless level of avatar customization and the possibility of even holding online concerts.
But the metaverse envisioned by technological progenitors such as Mark Zuckerberg is still to come. For the moment, we are in a phase of laying the groundwork for what is to come. For now, there are several independent initiatives that do not constitute a single ecosystem. Because to speak of a metaverse as such, we would have to have a single platform that acts as a continent for all the others, be they entertainment, e-learning or even economic-business.
In any case, these parceled initiatives are already beginning to show the potential of the future metaverse. For example, the move from Facebook to Meta may be the first foundation of what our social relationships will be like in a few years. Meanwhile, Microsoft's recent acquisition of Activision Blizzard opens the door to new scenarios such as mixed reality, with devices like HoloLens. Finally, Nvidia's Omniverse already allows users to use their graphics cards to create digital assets and 3D scenes in a shared digital universe.
What possibilities does the metaverse offer companies?
As for the metaverse in companies, there are already projects located entirely in the metaverse. We are talking about content creation, but also about companies that are dedicated to developing blockchain technology that allows decentralizing the control of platforms or consulting firms that are in charge of analyzing the legal aspects and GDPR compliance of what happens in the digital universe: from buying and selling virtual land to monetary transactions.
And the metaverse also offers numerous possibilities for NFTs. Their connection is the relationship of both to digital assets and how they are given value. NFTs, non-fungible tokens are blockchain-based encrypted digital files that are indivisible, transferable, scarce and exclusive. This new modality of digital assets helps to gain exclusive access to access certain location of the metaverse, as well as virtual property deed.
But what real possibilities does the metaverse offer to companies that decide to operate in it?
Improved customer experience. Some retail giants such as Walmart have already been using virtual reality since 2017 so that the customer can 'try' the product before buying it. If we transfer this to digital products, its application is practically unlimited.
A step beyond virtual reality. During the pandemic, some museums such as El Prado used virtual tours to avoid losing visitors. Something similar is happening with tourism or real estate, since the metaverse makes it possible to explore remote places with a single click. An evolution of marketing and advertising that has yet to be defined.
Paradigm shift in teleworking. The possibility of teleworking would be greatly enhanced thanks to a metaverse. We only have to think of telematic meetings or tasks in the cloud to imagine what we could find in a 100% virtual office.
Demand for new professional profiles. At the same time, the metaverse will require new profiles more focused on software development and content creation. This is something that Facebook is already doing, as it plans to invest 1 billion dollars exclusively in Meta this year.
A new twist in the entertainment sector. Because entertainment, like the audiovisual and gaming sectors, is already the first niche market in the metaverse and is expected to be the spearhead in the coming years.
Micropayments and virtual currencies. We are already beginning to see it precisely in video games, but it could extend to generate real interdependent economic systems in the not too distant future. Who knows, maybe even with its own stock market ecosystem and currency exchanges.
On the other hand, in the corporate environment, the metaverse offers the creation of virtual work environments through avatars, where teams can carry out immersive training and meetings, all as if the team members were in the same place in the real world. In this sense, the metaverse will revolutionize professional environments by fostering internal communication and enhancing relationships through virtual interaction, creating closer ties.
In short, the metaverse represents a change of model in areas as diverse as entertainment and work. And although most of the platforms that will comprise it are not yet fully defined, it seems clear that potentially the majority of companies with digital activity could make the leap in the coming years. Sectors such as video games or e-learning will be the first to experiment in the metaverse, while 100% virtual businesses will have to wait. For the time being.