What Exactly Is the Metaverse and Should We Care?

If you have been closely following the news over the past few months, you might have noticed a phrase frequently popping up - that is, the “metaverse.” While the actual word was coined back in the 1990s, it has only recently become a buzzword with a number of major companies publicly expressing interest in it. These companies include Facebook, which has recently rebranded itself as Meta, and Microsoft, who is in the process of acquiring video game maker Activision, as part of its expansion into the metaverse.   

So what exactly is the metaverse and why the hype around it? Is it simply just a buzzword?

Explaining the Metaverse: A Primer 

As mentioned before, the concept of the metaverse has been around for quite some time. Defining the concept, however, is not as straightforward. In fact, the best comparison of the metaverse is that of a video game. In role-playing video games, such as World of Warcraft, gamers can interact with each other via avatars. In addition, they can explore their surroundings, and even purchase items using in-game currency. This is mainly all done without the use of virtual reality (VR) headsets.  

So broadly speaking, the idea of the metaverse is taking this type of gaming and also the 2D internet experience and essentially converting it into a 3D one. It is incorporating technologies such as VR and AR (augmented reality) to combine the physical world with the virtual one. It can also involve a digital economy, where individuals can be allowed to make, buy, and sell goods. 

Another way to explain this concept of the metaverse is to think of the Internet as one with enhanced and extended layers, in which individuals are able to interact with different types of media. So the overall user experience is seamless and interconnected, where it is composed of extended reality (EX) experiences. It is worth noting that EX can be seen as an umbrella term that encompasses VR, AR, and MR (mixed reality). 

In short, the metaverse is a concept of a shared virtual environment that individuals around the world can access via the Internet. Interesting, right? 
 

The Metaverse vs Web3.0

Another concept that has been popping up is “Web3.0.” Web3.0 is essentially a vision of a new version of iteration of the World Wide Web - one that is decentralized and is based on blockchain technology. Well, couldn’t we say that the Metaverse and Web3 are basically the same thing?

At first glance, it might seem that way as they are both looking towards a decentralized future of the web. However, the short answer is no - these two concepts cannot be used interchangeably, as there are some major differences worth pointing out. 

Web3 addresses specific pitfalls and shortcomings of the Web2 internet - more specifically, it tackles the idea of ownership and control. By using blockchain technology, the middleman is cut out, meaning that users can own their data. An example of an initiative that has emerged from Web3 are NFTs, or non-fungible tokens, where users are able to sell their content as digital assets. 

The Metaverse, compared to Web3, is more of a vision at this time than a concrete reality. It is an idea of a 3D immersive world open to an endless number of users where people can spend the majority of their time working, hanging out, and interacting. It really has not taken form yet, though there are ideas on the direction it should take. 

Will the Metaverse Change the Way We Do Business?

At this point of time, it is unclear how the metaverse will transform different industries across the board. There are those, however, who claim that it will impact areas to include education, training, HR, sales, and marketing. A few organizations, for example, have been already looking towards the metaverse to conduct meetings as employees continue to work remotely. In fact, back in December 2021, Bill Gates himself predicted that most employees will conduct virtual meetings within two to three years. 

When it comes to education, technologies such as VR and AR are offering different ways of teaching and learning in the classroom. Students can use these types of technologies to have a more immersive experience learning subjects such as history, geography, and astronomy. The metaverse is also making inroads with real estate as realtors are starting to give house tours to their clients using VR/AR. In some companies, extended reality is allowing for the onboarding process to be interactive and seamless. So the opportunities within the metaverse are endless. 

But what about the tech sector? How, if any, will the metaverse impact the tech industry? At this point, it is a bit difficult to predict the impact as it is too early to tell, but we know that we will encounter cutting-edge technologies and products entering the market over the next few years. For example, Microsoft Teams is planning to introduce avatars to the mix as an alternative to showing your actual face on camera. These avatars will also work in 3D immersive spaces that will be a combination of 2D screens, VR, and AR. 

Well, is Metaverse the Future or Is it Just Hype?

So is this idea of the metaverse simply a buzzword? A far-fetched concept? Just a dream? Or is it the next big thing? 

It depends on who you ask. These are those who believe it is all hype, and that there are companies trying to jump on the meta bandwagon to show that they are forward-thinking and are the future of technology. Perhaps they are right, but it is simply hard to tell as the actual metaverse is years away. 

But there are those, such as Facebook, Google, Microsoft, and Apple, who are betting on the metaverse as a way forward. Last year, Facebook announced continued investments towards their Reality Labs, which will involve AR/VR software, hardware, and content. It is worth pointing out, though, that Reality Labs reported massive losses in 2021 - to the amount of over $10 billion. It does not appear Zuckerberg’s project is currently working, but let’s see if the investments pay over the long-run. 

Microsoft is another company that aims to play a role in the metaverse, more specifically, in the “enterprise metaverse.” It recently showed demonstrations of its HoloLens and Mesh technologies, where individuals were interacting with virtual objects and hologram avatars. 
Achieving this reality of the metaverse is going to take time and may not fully come to life, as it needs to address the pressing issues of ownership, costs, data privacy, and interoperability. There are key questions on how the metaverse will evolve - will it be an open system? Wil there be just one metaverse or multiple ones? Can the metaverse exist without VR?

Time will only tell how this will all unfold. It will be a slow progression, for sure.  Till then, let’s enjoy the ride.