Metaverse
“The Metaverse concept allows us to create any universe that we’ve ever imagined.”
Metaverse is a hypothesized iteration of the Internet, supporting persistent online 3-D virtual environments through conventional personal computing, as well as virtual and augmented reality headsets. Simply put, Metaverse is the Tech world’s parallel to the real world, a virtual-reality space in which users can interact with a computer-generated environment and other users. Author Neal Stephenson is credited with coining the term “metaverse” in his 1992 science fiction novel, but one of the most considered definitions comes from venture capitalist Mathew Ball who influenced Mark Zuckerberg, describes the metaverse as a “successor state to the mobile internet” and a “platform for human leisure, labor, and existence at large.”
The metaverse is a proposed expansion to existing internet technologies. Access points for the metaverse include general-purpose computers and smartphones, in addition to Augmented reality (AR), mixed reality, Virtual reality(VR), and virtual world technologies. Business and commercial interest in metaverse-related research and technology include Facebook, which bought VR company Oculus in 2014 and has announced plans to build a 3-D social space to connect varying services.
Let us have a look at the current and potential implementations of the Metaverse. Several components of metaverse technologies have already been developed within modern internet-enabled video games. The 2003 video game Second Life is often described as the first metaverse, as it incorporated many aspects of social media into a persistent virtual world. Apart from this other claims of developing a metaverse have been made for the games like Minecraft, Call of duty, Fortnite, Roblox.
Metaverse development has often focused on bettering virtual reality technologies due to the benefits of establishing immersion in virtual environments. In 2019, the social network company Facebook launched a social VR world called Facebook Horizon. Facebook was renamed “Meta Platforms” in 2021.
Its chairman Mark Zuckerberg declared a company committed to developing a metaverse ecosystem. Much of the underlying virtual reality technology that Meta Platforms advertised remains to be developed. With a focus on smart glasses, virtual reality headsets, and lifelike video calls over the internet, Meta hopes to shift beyond its roster of two-dimensional social media platforms to an interactive digital environment it’s dubbing the Metaverse. While the individual Instagram, WhatsApp, and Facebook apps will remain unchanged, Meta is focused on replicating the feeling of real social presence with interactions over the internet. If Meta pulls it off well, the Metaverse could open the door for new work, social, and gaming possibilities that will impact your everyday life!
Although living in a customizable reality may sound like a dream but there are still some concerns over Metaverse. For instance, Information privacy in the metaverse is a key area of concern because the companies involved will likely collect users’ personal information through wearable devices and user interactions.
Facebook is planning on persisting targeted advertising within the metaverse, raising further worries related to the spread of misinformation and loss of personal privacy. User addiction and problematic social media use are another concern for the development of the metaverse. Internet addiction disorder, social media, and video game addiction can have mental and physical repercussions over a prolonged period, such as depression, anxiety, and obesity. Experts are also concerned that the metaverse could be used as an ‘escape’ from reality similarly to existing internet technologies. AR pioneer Louis Rosenberg warned that the metaverse could be “more polarizing than social media”, driving people from their information bubbles to their “own custom realities” and that users could selectively “reality block” the parts of society they don’t like.
Tech Giants like Microsoft and Facebook have recently shown tremendous interest in the Metaverse concept. Microsoft announced it too would put resources toward creating a work Metaverse (which it calls Mesh), adding features to its Teams platform over the next year. Employees will be able to meet in virtual offices using VR headsets, chat traditionally over webcams, or equip digital avatars as stand-ins, all while accessing Microsoft’s suite of tools including PowerPoint for engaging collaborative talks and presentations.
Facebook announced that it will rebrand its parent company name to Meta Platforms Inc. (Meta) during its annual Connect Conference. Mark Zuckerberg also spoke about Capitalizing on the lack of shared office environments from home, Meta’s Horizon Workrooms App recreates the office experience from anywhere with an internet connection. If you own an Oculus Quest 2 VR headset, you can scan your computer, keyboard, and desk into virtual space by mapping them out with a passthrough camera and screencasting. This means you can still see your physical computer and use your peripherals with tracking for a Holodeck level of interactivity that blends real-world tools with virtual reality environments. In this virtual space, you can collaborate with coworkers as if you were in an office complete with spatial-aware audio, can share screens, and participants in VR or not can draw on a whiteboard from miles apart. Other than the troves of data Meta stands to gain from this, the company can now offer much more impactful ads or licensing deals for digital items. Ads are a big part of Facebook’s billions in annual profit, accounting for $28 billion of its $29 billion total revenue in the third quarter of 2021. The ability to put ad space in a new world, sell digital items for real money, and attract younger adults to its platforms is a huge opportunity for the brand to boost its revenue.
Roblox is an online children’s game often credited as a Metaverse pioneer because players can enter the game world from a virtual reality headset, computer, tablet, or phone. While the Roblox IPO launched earlier in March of this year at 64 dollars per share, that jumped to $110, making 57 percent increase.
With its virtual in-game economy that can only be bought using real-world dollars, user-created content, and collaborations with brands like Gucci, and a digital concert with Lil Nas X, the company prints money off of digital items from kids alone.
In the Sandbox virtual gaming world, a mega yacht has been sold for a whopping $650,000 (roughly Rs. 4.8 crores). Part of the metaverse, this virtual luxury ship is called the “Metaflower Super Mega Yacht”, featuring two helipads, hot tubs, and a DJ booth among other lavish facilities. With this purchase, the Metaflower yacht has become the most expensive non-fungible token (NFT) to have been sold in the Sandbox, a virtual world built on the Ethereum blockchain that allows players to gather digital collectibles, build their games, and monetize their experiences.
Adidas bought a piece of virtual land called “adiVerse” in the blockchain-based world The Sandbox, hinting that the company will offer virtual reality products. Adidas rival Nike has filed seven trademark applications as it prepares to enter the metaverse. As part of the application, the company indicated its intent to make and sell virtual branded sneakers and apparel.
Several well-known trademarks Nike owns are also included such as the “Just Do It” tagline, its SNKRS logo, the Air Jordan “Jumpman”, and the Nike swoosh. All of which can be leveraged as “downloadable virtual goods, namely, computer programs featuring footwear, clothing, headwear, eyewear, bags, sports bags, backpacks, sports equipment, art, toys, and accessories for use online and in online virtual worlds”.
With such a tremendous advanced let us have a look at some potential stocks to connect financially with this new generation of technology
- Fastly (NYSE: FSLY)
- Immersion (NASDAQ:IMMR)
- Matterport (NASDAQ:MTTR)
- Meta Platforms.
- Roblox (NYSE: RBLX)
- Roundhill Ball Metaverse ETF (NYSEARCA: META)
- Unity Software (NYSE: U)
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