What Is The Metaverse?
Meta describes the metaverse as ‘the next phase in social interaction and the evolution beyond the mobile internet.’
Although this definition holds generally true, it’s essential to recognize that Meta doesn’t have ownership over the metaverse; no single entity does.
In fact, instead of picturing a singular virtual world called the metaverse, it’s more accurate at this point to refer to them as ‘metaverses.’
A metaverse refers to any three-dimensional virtual environment, powered by technologies like virtual reality (VR), augmented reality (AR), artificial intelligence (AI), the Internet of Things (IoT), and blockchain, which enables people to interact, sometimes even with non-human avatars. Many metaverses are currently in existence.
Most have been developed by individual companies for specific purposes, with minimal to no interoperability between them, as unified standards for exchanging user identities and data across these virtual spaces are still in progress.
The History Of The Metaverse
The word “metaverse” was initially coined by science fiction author Neal Stephenson in his 1992 novel “Snow Crash.” In this narrative, Stephenson depicts a three-dimensional virtual realm that individuals can inhabit in a meaningful way.
The protagonist, Hiro, enters the metaverse using a personal terminal that displays 3D virtual reality visuals to his goggles. Within the metaverse, Hiro’s avatar interacts with other avatars, and ‘Snow Crash’ refers to a data file his avatar encounters within this digital world.
Outside of fiction, the concept of the metaverse was introduced and widely embraced by consumers through digital gaming. Pokémon Go, released in 2016, integrated augmented reality into mobile gaming, captivating global audiences.
Since then, multiplayer games like Fortnite, Minecraft, and Roblox have offered virtual spaces where players can interact as avatars—laying the groundwork for the metaverse.
By 2025, the metaverse had expanded beyond gaming and into other sectors.
Metaverse marketing is becoming a hot topic for consumer brands. Major global companies such as JP Morgan, Nike, Adidas, and McDonald’s are all pursuing strategies to tap into the metaverse’s marketing potential.
This development adds another layer of connectivity and opens new opportunities in the global economy.
According to the consulting firm McKinsey & Company, the metaverse could potentially drive $5 trillion in business revenue by 2030.
Does Meta Own the Metaverse?
“The metaverse doesn’t have a single creator or a universally agreed-upon definition, meaning Meta neither owns it nor is exclusively in charge of its development. However, Meta has made significant investments in the metaverse, particularly through its Oculus VR headsets, and is actively developing AR glasses and wristband technologies. In September 2021, Meta committed $50 million toward global research and partnerships to help ensure that metaverse technologies are developed in a responsible manner.”
Why is the metaverse important?
The significance of the metaverse lies in its ability to revolutionize our lifestyles, work environments, and social interactions. By dismantling geographical limitations, it enables unparalleled levels of collaboration and connectivity. This allows businesses to access a worldwide talent pool and facilitate remote interactions, driving both economic and personal development.
In this evolving landscape, organizations can create digital replicas of their operations before establishing physical locations and even integrate avatars into their workforce.
Moreover, the metaverse is expanding beyond mere digital realms, which is why Accenture has coined the term “Metaverse Continuum.” This concept encompasses all aspects of business and the interoperable technologies related to the metaverse that are transforming how individuals engage with one another, how employees undergo training, and much more.
How Does the Metaverse Work?
Defining the metaverse precisely can be challenging due to its complexity; however, most technology specialists concur that it represents an extensive network where individuals can engage socially and professionally through their avatars. Within this environment, users can invest in virtual currencies, attend classes, work, and explore in a three-dimensional virtual reality.
As the metaverse continues to evolve, it is expected to foster online environments that enable user interactions to become more multidimensional than what current technologies allow. In essence, the metaverse will empower users to transcend mere observation of digital content, allowing them to fully immerse themselves in a realm where the digital and physical worlds seamlessly blend.
What’s the Metaverse Like Right Now?
The challenge of defining the metaverse lies in the fact that to envision it as the future, one must distinguish it from the present. We already have massively multiplayer online games (MMOs) that function as complete virtual worlds, digital concerts, video calls connecting people globally, online avatars, and e-commerce platforms. To market these experiences as a new vision for the future, there must be some innovative aspect that sets them apart.
In discussions about the metaverse, it’s almost inevitable (and often tiresome) that references will emerge to fictional works like “Snow Crash,” the 1992 novel that introduced the term “metaverse,” or “Ready Player One,” which illustrates a VR environment where individuals work, play, and shop. Coupled with the popular cultural notions of holograms and heads-up displays—essentially anything featured in Iron Man’s recent films—these narratives provide a creative framework for what a commercially viable metaverse might entail.
What will the Metaverse mean for learning?
The metaverse holds significant promise for enhancing educational experiences. Currently, virtual reality is utilized to create training simulations for high-pressure and high-risk fields such as healthcare and construction, enabling hands-on learning in a secure environment.
As the metaverse expands, it has the potential to dismantle barriers, creating opportunities for experiences that were previously deemed impossible. These barriers may include physical, geographical, or environmental limitations.
The immersive qualities of the metaverse will enhance collaborative efforts, allowing groups to share experiences in real time.
Experiential learning has already been shown to increase student engagement, and the diverse opportunities within a cohesive metaverse can further amplify this engagement. For instance, students could virtually visit museums or historical sites, interacting with virtual artifacts that would typically be untouchable in the real world. This shared experience can occur simultaneously for all students involved.
Additionally, the metaverse could address ongoing discussions about hybrid work models by bridging the gap between online and in-person interactions. While many employees appreciate the work-life balance offered by hybrid arrangements, they often report feeling disconnected. In the metaverse, virtual meetings could take place in a shared space that more closely resembles our physical environment. This transition is already underway, with platforms like Microsoft Teams planning to introduce avatars and support for virtual and augmented reality in the near future.
The metaverse could facilitate smoother transitions into hybrid work setups by offering virtual environments that enhance interpersonal interactions. Imagine meetings where participants engage through avatars, enabling conversations that feel more natural than current video conferencing technologies allow.
Components of the metaverse
Virtual worlds: Virtual worlds are essential components of the metaverse. These digital environments typically host synchronous events that occur in real-time, providing users with a continuous experience. Many web3 metaverse initiatives operate as open systems, allowing any user to contribute. For instance, Decentraland enables players to purchase virtual land and construct whatever they envision.
Social networks: Most projects within the metaverse fundamentally resemble social networking platforms. As companies like Facebook explore the metaverse, we can expect to see increased parallels between social media sites and immersive virtual environments. Meta’s Horizons serves as a collaborative metaverse platform that incorporates features similar to those found on Facebook, such as user profiles, likes, and sharing capabilities.
Augmented reality: Augmented reality (AR) technologies facilitate the connection between the physical and digital realms. Games like Pokémon Go already leverage AR to create real-world metaverse experiences. John Hanke, the founder and CEO of Niantic, the company behind Pokémon Go, states: “We’re building a future where the real world is overlaid with digital creations, entertainment, and information, making it more magical, fun, and informative.”
Benefits of the metaverse
The metaverse brings considerable benefits across various industries, enhancing the effectiveness of meetings and group evaluations, making training safer and more accessible, and improving project efficiency and sustainability.
- Remote collaboration: Whether it’s reviewing designs or assessing processes on a construction site or factory floor, the metaverse allows team members and stakeholders to view and interact with the same elements simultaneously, enabling seamless collaboration from anywhere in the world as though they were in the same room.
- Education and training: Through the metaverse and spatial computing, more accurate virtual models of environments, systems, and objects can be created, making it an ideal platform for education and on-the-job training. Learners can acquire complex or hazardous skills—like welding or operating heavy machinery—safely and at a significantly lower cost.
- Enhanced simulation accuracy: The metaverse and spatial computing provide industries with time- and cost-efficient simulations that aid in decision-making. Creatives in media and entertainment can model production scenarios; the design and manufacturing sectors can simulate the functionality of prototypes and factory operations; construction projects can utilize risk and safety simulations; and the architecture, engineering, construction, and operations (AECO) industry gains from both spatial and operational simulations.
- Sustainability: With the metaverse, companies can virtually design, test, and validate products, structures, and systems, allowing for critical adjustments before anything is physically built, reducing resource waste, and promoting sustainability.
Some metaverse categories
Metaverses exist in different forms, catering to a variety of user interests and preferences, with each offering distinct experiences and features. There are four primary types of metaverses, though they can also be categorized by their specific uses. Below are some of the most common types:
1. Entertainment and Gaming Metaverses
These metaverses focus on delivering immersive gaming and entertainment experiences. Users can explore expansive virtual worlds, take part in multiplayer games, and enjoy virtual concerts, events, and other entertainment offerings.
2. Social Metaverses
These are designed to prioritize social interaction and networking. Users can connect with friends, attend virtual events, participate in online communities, and share real-time experiences, replicating the sense of presence and interaction.
3. Educational and Training Metaverses
These metaverses function as interactive learning platforms. Schools, universities, and businesses use them to hold virtual classes, workshops, and simulations, providing learners with hands-on training opportunities in a virtual environment.
4. Work and Business Metaverses
Focused on remote collaboration and enhancing productivity, these metaverses provide virtual meeting rooms, conferencing tools, and shared workspaces, enabling teams to work together and conduct business remotely.
5. Virtual Real Estate Metaverses
In these metaverses, users can purchase, sell, and develop virtual properties. Often built on blockchain technology, these platforms offer users true ownership and control over their digital land and assets.
The role of NFTs in the metaverse
NFTs, or Non-Fungible Tokens, have become a pivotal and revolutionary component of the metaverse. These distinctive digital tokens are essential for establishing genuine ownership and authenticity of virtual assets. Each NFT signifies a unique and verifiable item in the digital space, whether it be virtual real estate, digital artwork, in-game items, or various collectibles.
Thanks to blockchain technology, NFTs guarantee that users possess undeniable ownership of their virtual belongings, fostering a sense of value and exclusivity. This ownership transcends individual metaverse platforms, as NFTs facilitate interoperability, enabling users to own and utilize their assets across various applications and virtual environments effortlessly. Consequently, NFTs empower individuals to fully engage with their virtual identities and gain unprecedented control over their digital assets.
These distinctive digital tokens allow users to tailor their experiences within the metaverse. By utilizing personalized NFTs, individuals can represent their virtual identities through customized avatars, clothing, and accessories. This degree of personalization enhances a sense of individuality and self-expression in the digital environment. Beyond their visual appeal, NFTs serve practical purposes in gaming, representing in-game assets and characters. These gaming NFTs can be bought and sold in virtual marketplaces, fostering a vibrant in-game economy that merges virtual and real-world value.
These distinctive digital tokens allow users to tailor their experiences within the metaverse. By utilizing personalized NFTs, individuals can represent their virtual identities through customized avatars, clothing, and accessories. This degree of personalization enhances a sense of individuality and self-expression in the digital environment. Beyond their visual appeal, NFTs serve practical purposes in gaming, representing in-game assets and characters. These gaming NFTs can be bought and sold in virtual marketplaces, fostering a vibrant in-game economy that merges virtual and real-world value.
In addition to empowering users and creators, NFTs enhance the transparency and integrity of the metaverse. The unchangeable nature of blockchain technology ensures that each NFT’s history and provenance are securely documented, providing users with a clear record of asset ownership. The trustworthiness and traceability offered by NFTs lend credibility to the virtual asset market, minimizing the risk of fraud or counterfeit items.
Current state of the metaverse
Currently, the metaverse functions more like a collection of separate online virtual 3D environments rather than a unified entity. If organizations like the nonprofit Metaverse Standards Forum succeed in creating open data standards for the metaverse, we could see a future where it evolves into a single, interoperable, persistent virtual space. In this scenario, users’ avatars would seamlessly navigate between environments, utilizing digital assets from various sources without interruption.
At present, the metaverse offers varying levels of immersion. As of October 2023, the majority of the 600 million monthly active users on metaverse platforms are engaged in virtual world games on mobile and desktop devices, with popular titles including Fortnite, Roblox, and Minecraft. The media and entertainment sectors that develop these metaverse games are also exploring new applications, such as virtual fitting rooms for e-commerce and health and fitness solutions.
Interest in accessing a more immersive metaverse through mixed and virtual reality headsets is on the rise, with shipments projected to increase from 30 million in 2022 to 105 million by 2025. The primary motivations for adopting new metaverse experiences include work and educational purposes.
Immersive spatial computing technologies can facilitate the teaching of complex concepts and advanced skills, particularly in on-the-job training to address growing skill gaps in industries like manufacturing and construction. For professional use, these technologies enhance collaboration among remote team members and improve efficiency in design and engineering processes. Stakeholders can create digital twins—3D representations of products, structures, or systems—in the metaverse to simulate real-world performance, allowing for rapid and cost-effective design refinements before committing to physical production.
