What is the Metaverse? 👾 [Part 1]

Hey friends!

Let me just start by saying this: I love human connection.

If you’ve met me before, you know that I’m pretty animated, lively, and a true extrovert. Being around people, in real life, gives me energy. So I’m sure you aren’t surprised when I say…

The metaverse kind of freaks me out. 

It freaks me out a lot less than when I first heard of it, but still enough to cause me to think, “Okay, what does this mean for society and human interaction?”

As I’ve been on my own research journey in the space, I’ve begun to better understand what this is all about, why Facebook changed their name to Meta, how the metaverse relates to blockchain technology, and what it means for us in the future. Of course with anything, there’s potential upside and downside for this transition to a potentially digital-first world, so I’ll be sure to address both of these things in my next post for Part ✌🏽. However, before I get into my thoughts and learnings, you know what we have to do… break down the definition!

What is the metaverse?

The metaverse is a combination of multiple elements of technology, including virtual reality, augmented reality and video where users "live" within a digital universe. Supporters of the metaverse envision its users working, playing and staying connected with friends through everything from concerts and conferences to virtual trips around to the world.

It’s important to know that the metaverse is not just one place — it exists as different experiences on a mixed reality spectrum, from augmented reality to virtual reality.

You might not realize this, but you’re probably more familiar with the metaverse than you think. In some cases, you may have already interacted with it! To best understand what I’m talking about, I’ll break down these two components of the metaverse and share some relevant examples within each of them:

Augmented Reality

• Definition: Augmented reality is a type of interactive, reality-based display environment that takes the capabilities of computer generated display, sound, text and effects to enhance the user's real-world experience.

• Examples: Instagram filters, Snapchat filters, PokemonGO (lol throwback!)

Virtual Reality

• Definition: Virtual reality is the term used to describe a three-dimensional, computer generated environment which can be explored and interacted with by a person. That person becomes part of this virtual world or is immersed within this environment and while there, is able to manipulate objects or perform a series of actions.

• Example: Virtual headsets like Oculus that allow you to enter into an entire new reality.

Why did Facebook change its name to Meta?

Long story short — there is massive opportunity to build the infrastructure and new ways of connecting in the metaverse. Facebook is the premier social connection app, so if they want to continue to be on top they have to be strategic about leveraging the next best technology that will rule social connections. Right now, it’s all pointing towards the metaverse.

Since I mentioned Oculus, I figured it was only right to touch on why Facebook is now called Meta. This article by Inc does a great job of driving home my point above —

“First, it's important to acknowledge that Facebook didn't simply change its name or rebrand. It fundamentally changed the direction of the company.

This type of technology has the potential to be the biggest business of all time--because it will provide people with the ability to immediately transport themselves to another place or even time. It's transformative. Facebook has committed its entire brand to the metaverse--and with it potentially billions of dollars of resources.

For illustrative purposes, we could compare Facebook to Tesla. Today, we see more and more car companies following Tesla's lead in producing electric vehicles. Yet Tesla's value has exploded in recent years. 

Its market cap exceeds the next nine companies combined, legacy automakers like Toyota, Volkswagen, GM, Ford, and BMW.

Tesla's success has nothing to do with the number of cars it's produced, and everything to do with the 10-year head start it got on technology. 

And this is what Facebook is attempting to do with the metaverse. They've identified the next innovation and gone all in--while their product is still at the top.”

Not only has Meta played in this space, but other corporate giants like Google, Microsoft, Samsung, Sony, J.P. Morgan, and many others.

How do the Metaverse and Blockchain Fit Together?

Now you know I have to tie this together since we just discussed NFTs, blockchain technology, and crypto in previous posts!

According to a Coindesk article, “Behind the scenes of the metaverse will be a demand to deliver permissionless identity, financial services and high-speed exchange. Data will have to be stored and served to millions if not billions of people. The answer to these problems lies in the technology of cryptocurrency.

Companies like Decentraland and The Sandbox have developed virtual worlds that integrate cryptocurrencies so gamers can create structures like virtual casinos and theme parks, and monetize them. In Decentraland, the currency used is called MANA, and is available to purchase on exchanges like Coinbase. There are even casinos in Decentraland where you can gamble in MANA, with dealers paid in MANA to show up for work.

NFTs will also play a foundational role in the metaverse, giving people complete ownership of their characters, accrued in-game items and even virtual land. An NFT of a 259-parcel virtual estate in Decentraland recently sold for more than $900,000, the largest sale to date.

Eventually, it will be possible to buy and sell virtual goods from different games and universes on interoperable marketplaces. So someone might be able to sell their virtual plot of land in the Decentraland world and use the funds to purchase Fortnite skins, for example. Cryptocurrencies could become the sole legal tender used in the metaverse, with all virtual objects and intangible items being expressed as NFTs.”

Very interesting stuff, to say the least. I personally can’t even imagine what this will look like in 10, 20 years down the line. But we’re in for a wild ride and all we can do is educate ourselves and be prepared to contribute and get involved in whatever way makes sense!

Continuing on this topic next week, we’ll discuss:

• Future use cases for the metaverse

• The upsides and downsides of the metaverse

• How to get involved in the metaverse

This week’s recommended action: Check out Justin Bieber’s concert in the Metaverse!

Lol the avatars and Biebz were very entertaining. This is also an examples of what it may look like for other artists to do concerts in the metaverse. Would you attend a concert in the metaverse or is still a little too weird to imagine? Let me know in the comments!

See ya next week!

Kendall