Following Mark Zuckerberg’s announcement that Facebook is transitioning from a social media company to a Metaverse company, Epic Games raising $1 billion to support the Metaverse vision, and Microsoft’s announcement about its Microsoft Mesh, Metaverse has become one of the most popular terms these days.
1. What is the Metaverse?
The Metaverse is a virtual realm constructed using a combination of technology tools such as virtual reality and augmented reality, among others, to provide users with the most realistic experience possible when entering it.
- Incorporating the features of web services and real-world activities
- 3D graphics
- Everyone has their own avatar
- Various means of communications
- Users create their own virtual assets and virtual spaces
- Connecting with the real-world economy system to monetize intangible items
- Using AR, VR glasses
4 components to create a complete metaverse:
- Foundation: the internet
- Infrastructure: hardware components, technologies (Blockchain, AI, Big Data,…)
- Content: games and applications that help users enjoy the most vivid experiences
- A true Metaverse: with real-life experience, unlimited creations and economic systems
Some popular Metaverse games:
– Minecraft: players can exploit resources to craft tools, build buildings and create their own worlds as well as interact with other players
– Roblox: allows players to be creative based on provide tools provided. Has support for experiences with VR, storing data on Cloud, and especially provide a system of economic incentives for players.
– In the Crypto Market, there are many examples of the Metaverse such as Decentraland, The Sandbox, … In these games you can create your own worlds, own property through NFT as well as trade them through Marketplace, …
- Unrealistic experience due to the limitations of VR, AR technology.
- Non-blockchain games can not interoperate with one another (in-game items cannot be exchanged interchangeably and not exchangeable for real-world items). Interoperability among blockchain games is still limited.
- Virtual space has not gone as far as human’s creativity.
2. Why does the Metaverse trend become popular?
The Metaverse allows users to experience and explore the virtual space unlimitedly until the technology is developed for real experience. For instance, people can explore the universe using VR tools or try on digital 3D designs before purchasing them. Architecture can also monitor the construction from anywhere by utilizing the Metaverse.
During the COVID-19 pandemic, the Metaverse seems to be an ideal platform for people to socialize with each other in a more realistic manner
3. The potential of the Metaverse in the future
The scale of Metaverse
The hardware industry (chips, electronic components, virtual reality devices …) has a global value of about $944B with a compound annual growth rate of 9.4%. The content industry (metaverse experience platforms: games, social networks, …) with the gaming industry’s own value of about $174.9B.
Facebook has renamed as Meta in preparation for the Metaverse
Recently, CEO Facebook changed its corporate branding to Meta to show the determination to build the Metaverse. Facebook is investing in the infrastructure of the Metaverse, specifically the VR Oculus headset, a device that enables people to join the virtual space in the form of a full body avatar or show up in any place in the form of 3D projection.
4. How does Blockchain faciliate the development of the Metaverse?
Blockchain is the key to a complete Metaverse
On the internet, we can easily access a massive amount of content, which is the Metaverse’s foundation, thanks to Google, Facebook, Netflix,… or game platforms like Playstation, Fortnite, Unity,… Those platforms, however, do not connect with one another; in-game items cannot be sold for real money, and users’ privacy and ownership are also restricted.
All those issues can be solved by Blockchain technology due to its following features:
- Ownership (NFTs – the unique and unreplaceable assets)
Factors affecting the development of the Metaverse in the Crypto market
- Blockchain: Blockchain has a large storage capacity and high scalability. It also enables for the highest level of transparency in transactions and user ownership.
- Blockchain-based Dapps: NFT, Marketplace, Metaverse-based Gaming Dapps, and DeFi platforms.
- The Cross-chain bridge that helps the metaverse ecosystems to be linked together: Creativity, scalability and interoperability are maximized.
The Metaverse in the Crypto market has not been well developed due to the following reasons:
- The foundation layer has not been fully developed. Currently, Ethereum is the biggest ecosystem but it offer slow transaction throughput and limited scalability.
- The blockchain ecosystem is still in its early stages of development.
- Metaverse Dapps have not been able to offer a full-featured experience.
- Cross-chain technology has not been completed and has a low level of privacy.
5. Predictions about the Metaverse Trend
The development of technology as well as the complicated situation of the pandemic have made the 30-year-old concept become the hottest topic in recent days. Notwithstanding, Metaverse is still a new area that promises to explode in the future as further improvements are made.
Doan Hong Nga and TechBiz team, based on the insights by The Verge and T-rex.exchange