Hey everyone, have you ever heard about 'METAVERSE' and wondered what is it? then you are in the right place to explore what is it. Let's jump into it.

What is the Metaverse?

The internet is in the midst of transitioning from Web2.0 to Web3.0, shifting investor perception towards innovation and decentralization. With technology evolving, Web3.0 aims to go beyond simply connecting people.

The Metaverse is seen as an early framework for this "new internet". It is intangible and undefined. Various reports speculate on the possibilities, but the only undisputed conclusion is that it will be a better internet for everyone.

It is built from the infrastructure of Web3.0, the new internet born out of decentralized architecture.

Key Metaverse elements :

The Metaverse is more than just a virtual reality. It is predicted that it will incorporate multiple key elements across 2 main sectors:

• GAMING:

• New Social modes of in-game behavior and engagement.
• Rising popularity in NFTs.
• A rise in gaming guilds.
• Merging of game worlds and IPs.
• A blend of digital and physical aspects.

• IMPROVING METRICS ACROSS ACQUISITION, RETENTION, AND MONETIZATION:

  1. Adding new revenue streams and finding new business models.
  2. Expanding reach to new audiences including non-gamers.
  3. Customer acquisition with new reasons and motivations to play.

At the end of 2021, $10.4 billion in capital was raised by top companies investing in the Metaverse. These include Amazon, Microsoft, Tesla, Apple, Google, and many more.

Metaverse and Web3 :

Web3.0 Economics is becoming interconnected, where decentralized protocols will interoperate in the Metaverse and provide technical infrastructure.

This would include areas such as:

1. Payment networks like MANA are built upon Ethereum.

2. DeFi, enables users to trade in-game items, using aggregations, DeFi primitives, Oracles, Data, and Units of Value.

3. NFT Sovereign Goods, enabling players to purchase NFTs and bring them to other virtual economics for sale to display. This would include the use of marketplaces, metadata standards, redeemable NFTs, minting houses, etc...

4. Decentralized Cloud services such as Arweave give decentralized storage infrastructure solutions. This also includes areas such as Databases, Queries, and APIs.

Nfts and Metaverse:

It is important to understand that NFTs can now be considered an asset in a basket of goods, that can be borrowed and lent against. While NFTs are less liquid, collections like BAYC will mean that MetaFi will soon be common.

As entertainment and gaming mature, especially for P2E economics, it is only natural that NFTs from these sectors can be used for financial purposes. One such example is Defrag protocol, allowing users to utilize their entertainment assets as liquid collateral.

Key technologies that power Metaverse:

The main idea that drives Metaverse is getting as close to reality as possible in a virtual space. For this reason, companies are using technologies like AR (Augmented Reality), VR(Virtual Reality), Blockchain, Artificial Intelligence, 3D reconstruction, and the Internet of Things (IoT).

• The primary concern with Metaverse was the safety of its user’s identity and data. Blockchain helps reduce this problem as it provides a decentralized way of functioning and enables a governance process. Along with this, it incorporates crypto, which, as seen before, can help users buy, transfer and claim ownership of digital assets in a safe manner.

• Augmented Reality and Virtual Reality provide the hardware for the user to have an immersive and real experience. While AR adds to or augments a user’s real-world, VR creates an entirely separate virtual world. Both these technologies are being improved, and people might be able to hear, feel and interact with people.

• 3D Reconstruction will essentially allow companies to build 3D models of real-life spaces and bring us closer to realness in virtual spaces.

• The Internet of Things will play a key role in bringing what we have in the physical world to virtual spaces. For example, integrating IoT into meta could change the way particular meta-objects function, like based on the weather, which will be real-time and closer to our real-life scenarios.

Future of the Metaverse:

The evolution of the metaverse will depend on consumer response as well as the outcome of at least four key unknowns:

source - dolettile

outro:

I hope this article is useful and gave some basic understanding of what the Metaverse is, and how it is functioning. Metaverse is just the beginning of many future virtual worlds. If you find it very interesting like me, I encourage you to dig deeper and know the inner functionalities of the Metaverse like how the NFTs play a major role in game assets and how virtual real estates are sold in the metaverse, and so on.

related resources:

Thank you for reading 🤗

HAPPY LEARNING

-JHA