The term ‘Metaverse’ was coined by Neal Stephenson in a science fiction novel Snow Crash in 1992 which refers to a completely developed digital environment. The metaverse is a collective and virtual open space created by the convergence of virtually enhanced physical and digital reality. It is physically persistent and provides enhanced immersive experiences. The metaverse would allow people to replicate or enhance their physical activities. It is a combination of multiple elements of technology, including virtual reality (VR), augmented reality (AR), and video where users could live within a digital universe. The metaverse could be accessed through a smartphone or a computer. It often includes virtual reality headsets to create more immersive experience or augmented reality, that could insert virtual objects into the real world.
The metaverse does not refer to a particular type of technology; it is a network of 3D virtual worlds that helps in making social connections. It relates to a major shift in the way interaction and communication take place using technology in today’s fast-growing world.
The metaverse represents the fourth wave to computers, following mainframe computing, personal computing, and mobile computing. It is expected to move people into ambient computing. Metaverse is about being with the computer, rather than accessing the computer. It is about being always online rather than always having an access to an online world. Technological giants are banking on the appeal of the experiences of the metaverse as they set their futures on the metaverse.
People could use the metaverse to socialise, buy products online, play games, or even interact with their colleagues in a virtual metaverse office. Educational institutions could use it for virtual classroom learning, where students could experience the real-classroom like atmosphere.
Technologies Required for the Metaverse
A 3D gaming engine, such as a Unity or Unreal, a programming language, and an app or game development platform, are required for the metaverse application development. Unity, UWP, C# and .NET are required to create Microsoft holographic apps, HoloLens2, and Microsoft Mesh.
Most of these technologies, that are required to create an immersive virtual replica of the real world, already exist to some extent. These technologies could be referred to as the foundation of the metaverse.
History of the Metaverse
- The metaverse may have become the buzzword only recently but it has been prevalent since long. The following are some of the key historical milestones that have led to where we are today, as we develop cutting-edge Web 3.0 technology.
- In 1838, scientist Sir Charles Wheatstone outlined the concept of ‘binocular vision’, which combines two images—one for each eye—to make a single 3D image.
- In 1935, American science fiction writer, Stanley Weinbaum, published the book Pygmalion’s Spectacles. In this book, the main character explored a fictional world using a pair of goggles that provided sight, sound, taste, smell, and touch.
- Morton Heilig, an American pioneer in VR technology and a filmmaker, had created the first VR machine, the ‘Sensorama Machine’, in 1956. This machine had simulated the experience of riding a motorcycle in Brooklyn. It combined 3D video with audio and a vibrating chair to immerse the viewer.
- In the 1970s, the Massachusetts Institute of Technology (MIT) had created the Aspen Movie Map that had enabled users to take computer-generated tour of the town of Aspen, Colorado. This was the first time VR was used to transport users to another place.
The following are the key milestones in the evolution of the metaverse as it stands today:
- In 1989, Tim Berners-Lee invented the World Wide Web (www) while working at Conseil Europeen pour la Recherche Nucleaire, the largest particle physics laboratory. Web was originally conceived and developed to meet the demand for automated information sharing between scientists in universities and institutes around the world. However, it rapidly turned out to be the best communication system around the world.
- In the early 1990s, Sega, a video game company, introduced VR arcade machines including the SEGA VR-1 motion simulator, which users enjoyed in many arcades. In 1998, Sportsvision broadcast had the first live National Football League (NFL) game with a yellow yard marker. This idea of overlaying graphics over real-world views, quickly spread to other sports broadcasting as well.
- In 2006, Roblox, an online platform that allowed users to create and share games with others, was introduced. In 2009, Bitcoin, the world’s first successful cryptocurrency and blockchain platform, was created.
- Palmer Luckey, an 18-year-old entrepreneur and inventor, created the prototype for the ‘Oculus Rift’ VR headset, in 2010. With its 90° field of vision and use of computer processing power, this revolutionary headset reignited interest in the VR.
- In 2011, Ernest Cline, the science fiction writer, released the book Ready Player One, which gave another boost to completely immersive world that one could enter to escape from reality. This book was one of the best sellers, and director Steven Spielberg made it into a movie in 2018.
- Facebook acquired Oculus VR in 2014 in a two-billion-dollar deal. Facebook and Oculus are working together to build the Oculus platform, and developing partnerships to support more games.
- In 2014, technology giants had introduced their extended reality (XR) products, including their own VR headsets. Google, too, released its first Cardboard device and Google Glass (AR glasses). Google’s Cardboard device is a low-cost cardboard VR viewer for smartphones. Also, in 2014, Decentraland announced their first iteration of an online virtual world. Decentraland is the virtual destination for digital assets. Decentraland is a decentralised virtual reality platform, powered by the Ethereum blockchain. Within the Decentraland platform, users could create, experience, and monetise their content and applications.
- Microsoft brought out its mixed reality AR/VR HoloLens headsets in 2016. With HoloLens, a holographic image could be created and put into the real world, and could also be manipulated using AR. It was in 2016 that a game, Pokemon Go, was based on AR technology, which took the world by storm.
- It was in 2017 that Swedish furniture giant IKEA joined metaverse mix. Their innovative Place app allowed to select a piece of furniture, and view how it looked like, in the customer’s premises. Also, the multiplayer game and social hub ‘Fortnite’ was released in 2017, which introduced concepts like virtual concerts and virtual tours.
- In 2020, Apple added Lidar (Light Detection and Ranging) to iPhones and iPads. This led to better depth scanning for better photos and AR. It also paved the way for mixed reality headsets.
- In 2021, Facebook changed its name to ‘Meta’, indicating its focus on shaping the future of the metaverse. Apple is currently working on headsets that could potentially replace smartphones as the interface into the metaverse of the future.
Theory of the Metaverse
In order to understand and explore the possible implications of the metaverse, it is necessary to understand what it exactly is. For that, it could be categorised into the following three schools of thought:
As a product or service According to Matthew Ball, author and investor, the metaverse is an expansive network of persistent, real-time rendered 3D worlds and simulations that could be experienced synchronously by an effectively unlimited number of users. The metaverse is a product or service, with seven core attributes including persistence, synchronicity and interoperability, without any cap to concurrent users, being a fully functioning economy, an experience that spans both the digital and physical worlds, and, created and operated by an incredibly wide range of contributors.
As a place The metaverse has also been described as a place where users could connect, interact, and transfer themselves and their belongings across multiple digital locations. For example, gaming and creator platforms like Roblox, Fortnite (by Epic Games), or Core (by Manticore Games) in which players and their digital identification (commonly called as ‘avatars’) could seamlessly transit from one virtual world to another.
As a moment According to Shaan Puri, the start-up entrepreneur, the metaverse is a point in time. The metaverse is the moment at which our digital lives—our online identities, experiences, relationships, and assets—become more meaningful to us than our physical lives. This perspective puts the focus on the human experience, making the transition to the metaverse as a sociological shift instead of a technological one.
Elements of the Metaverse
Due to technological hurdles, the metaverse would not arrive in the near future, but there is plenty of information on how it would work. The main elements of the metaverse include: digital currency, marketplace/digital commerce, non-fungible tokens (NFTs), infrastructure, device independence, gaming, digital assets, concerts, social and entertainment events, online shopping, workplace, social media, digital humans, and natural language processing.
Technologies Involved in the Metaverse
The metaverse includes digital environments, digital items, digital identities, and digital behaviours that replicate the real world. The metaverse comprises a collection of technologies.
The main technologies involved are as follows:
People and digital identification (avatars) Users in the metaverse are represented by 3D avatars. They would portray themselves as actual individuals and they would imitate human activities such as conversing, strolling, working, dancing, and playing. With the use of XR gadgets, even touch, sensation, and scent would be possible in the future.
Digital assets The metaverse is expected to represent real-world economies in a virtual environment, deal with them in the virtual world and bring them back into the actual world. People from the real world would train in a virtual world and learn and use the skill sets they acquire in the actual world. For this, digital assets and NFTs are being employed in games where players may earn digital currencies and pay them out in real currency in the real world.
High-level computing High performance computation is required to develop and run the metaverse. Hence, the metaverse enterprises are now concentrating their efforts on developing high-performance computing infrastructures, including faster processors, adequate storage, and high-speed internet.
Augmented reality gadgets Overlaying a virtual world on top of a real one necessitates the use of special glasses, lenses, or a phone. For example, Snapchat Lenses, which could transform one to look like a dog when they open their lips, etc. Meta is presently working on a set of augmented reality spectacles.
Virtual reality gadgets Putting on a headset is necessary for plugging into VR. This is commonly accompanied by portable motion controllers. Use of VR gadgets would give the whole field of vision and other senses, overwhelmed by a digital environment. The gadgets would map the digital avatars, allowing the user to roam about a virtual world. Use of Oculus VR goggles would be necessary for entry into Meta.
Haptic technology Presently, many VR reality encounters lack in touch. The artificial intelligence (AI) research department at Meta is one among the several, attempting to make the metaverse more touch-responsive through the use of haptic technology. Haptic technology is a specific technology that stimulates tactile sensations. Haptic technology aims to stimulate the sensation of touch with various mechanisms. It delivers force or vibration to the skin of the user to stimulate genuine physical contact.
Blockchain technology The digital key to the metaverse would be the blockchain. Blockchain is a distributed, decentralised record of information shared by various users. Blockchain’s unchangeable records would provide users with the confidence to do business online without the fear of fraudulent practices.
Mixed reality Mixed reality (MR) is a general term for things which do not fit into AR or VR. MR is a combination of components of the real world with the virtual world.
XR gadgets The XR is a combination of AR, VR, and MR. To access the metaverse, the users have to use one or more of these XR devices. These gadgets not only provide a virtual environment, they also record geographical data and the user’s discourse.
Applications of Metaverse
Some of the applications of the metaverse are as follows:
Solving remote work challenges We could alter remote work functionality and introduce a new type of employee interaction using the metaverse. With its 3D avatar, the metaverse would aid in successful communication with teammates as well as reading their body language and thinking. Also, the employer may handle issues such as workflow, time-theft, etc., at the workplace as they could keep track of team productivity through their distinct profiles.
In health care The metaverse would prove to be an excellent tool for healthcare professionals as they would be able to connect with patients in the metaverse’s virtual world. Remote patients would get better medical care from specialists as there will be no need to travel a long way to meet their doctor.
In future online gaming The majority of online games use a decentralised economic model. The developers and publishers own the in-game assets and have the ability to distribute them. The virtual gaming is going to have a big boost for both the developers and the publishers as they would be able to give their users a live experience. Gaming industry has been investing hugely in the metaverse to lure their users with best AR, VR, MR, and XR experience.
In advanced blockchain use Blockchain or decentralised technology is critical for widespread adoption of the metaverse across businesses. This technology supports cryptocurrencies like bitcoin, ethereum, dogecoin, and others. It is used to support and maintain cryptography. It could be used as a distributed ledger for recording peer-to-peer asset transactions. Then, it could be used to create NFTs and decentralised applications (dApps).
In interactive social media platform The metaverse is the basic platform which gives users an immersive experience by instilling a sense of presence in them. In addition, the metaverse would merge VR with AR, and create a more realistic experience which goes beyond the present capabilities of social media. Social media has, by far, evolved beyond basic chats to the sharing of memories, tales, and experiences, and we are now approaching the virtual world of the metaverse. By utilising the metaverse, the users would become their own content makers while living in a virtual world.
In online collaboration Instead of starting a video call or sending a message to the family members or friends, online collaboration with the metaverse would become a more real-life experience. Family members could meet in the metaverse to spend time together and enjoy by engaging themselves in the digital world.
In education Online education has become a household feature since the onset of the pandemic. With its graphically rich virtual world and 3D elements with immersive experience, the metaverse would give students a more engaging experience. The metaverse would allow students and teachers to walk through the virtual environment with life-like participants, rather than seeing them on the screen and communicating through microphones.
In enhancing virtual user experience Online shopping already has a significant impact on customers. The user experience would be enhanced and customers would have real-life purchasing experience. Customers would be able to touch and feel the products, as well as try them out before making a purchase. The metaverse would be one of the best opportunities for online shopping platforms to serve their clients digitally through real-life experience.
Business Opportunities of the Metaverse
The metaverse could potentially be used in the following business opportunities:
- Healthcare, gaming, entertainment, education, social media, training, design, real estate, e-commerce, and advertising are among the businesses that are likely to adopt the metaverse.
- The gaming industry was the first to adopt partial metaverse use such as 3D avatars, 3D worlds, towns, spaces, digital assets, and digital currency. In games, digital tokens (cryptocurrencies) and NFTs are utilised.
- Virtual events, having gained popularity over the last two years, could now present more integrated offerings.
- Retail industry could extend its reach to an immersive shopping experience that would pave the way for more complex products.
- Many enterprises could achieve better engagement, collaboration, and connection with their employees through virtually augmented workspaces.
- Social media could move to the metaverse as it would enable users to interact through 3D avatars.
The next generation advertising and e-commerce would be through virtual worlds. The value of the virtual economy is already in billions of dollars. Brands that had traditionally used advertising space on websites and billboards have now started buying up digital land in the metaverse.
Investment in the Metaverse
Investing in firms that construct the metaverse and metaverse-related technology, is one approach to invest in the metaverse. Microsoft, Meta, Unity Software, and Nvidia are among the businesses at the forefront of the metaverse competition. Most of the gaming and AR/VR device firms, such as Sony, HTC, Google, Samsung, and Nintendo are working on the metaverse. Investing in these firms is like investing in the metaverse.
Prices for the metaverse real estate have been soaring up to 500 per cent, ever since Facebook announced its metaverse plans. The logic is that land in the metaverse, where a lot of people gather, would be more valuable, just like land in the real world.
Leading Metaverse Companies
Some of the leading metaverse companies are mentioned below.
- Facebook has stated that it would become a metaverse company, when it changed its name to Meta in 2021. Meta and Snap are two social media firms that are aggressively investing in the metaverse.
- Microsoft, Unity Software, Nvidia, and Sony are among the main firms that are preparing for huge growth in the metaverse.
- The goal of Microsoft’s metaverse strategy is to introduce the metaverse to businesses.
- Roblox is a game start-up that focuses on the metaverse and connects people via play.
- Electronic Arts and Activision Blizzard are already working on games, that would bring the metaverse to life through various games.
- The Warner Music Group is aggressively investing in the metaverse in the music industry.
Pros and Cons of the Metaverse
There are certain benefits of these virtual collaboration solutions; however, there are also some things that make them less ideal solution. Following are some of the pros and cons of the metaverse.
Pros of the Metaverse
Immersion and shared environment As VR creates a fully immersive experience, users feel like they are present in the live situation. During meetings, participants could interact with the same environment by drawing a whiteboard and moving around objects. This would create a memorable experience, as compared to individuals looking at their separate monitors.
In the moment engagement In case of a business presentation or a family function, the user would be able to feel the presence of colleagues or family members around them. The users could respond and react, as if they were in a physical space.
Spatial audio The metaverse has spatial audio, hence, sound appears to originate from its source. This makes it easier to identify who is speaking. For instance, when someone on the left of the user start talking, it could be seen that everyone turns their head to listen, just like in a real face-to-face meeting.
It is also possible to have side conversations by moving away from the audio. This makes it easier for smaller groups to break off and have a conversation.
Best representation of oneself As it is the digital avatar of the user, there is no worry about how comfortable the user might be dressed. There are several collaborative solutions which provide a lot of flexibility to the users to present or express themselves in these environments. This means that the users could present their best digital representation.
Better tools In some of the solutions, there would be options allowing the user to bring their CPU into the environment. With hand tracing, along with the proper set-up, the user would be able to type almost as well, as they could in the real world. This is because the user’s actual hands are touching the real keyboard, and the user would be able to see these in the virtual world.
Cons of the Metaverse
Hardware To have the best experience of the metaverse, the user should have additional hardware. Though VR hardware has hit the market, the user needs additional purchase, as it is not a device that is already built into the day-to-day workflow, unlike laptops and cell phones. There is also a lot of scepticism around the quality and immersive experience provided by the hardware due to earlier exposure to VR.
Privacy and security concerns There is a lot of concern around security and privacy in these spaces. Some of the big companies looking at building virtual collaboration solutions, make their money by advertising and/or selling user information. This would create a lack of trust for companies having private internal meetings. Another thing that has to be considered is screen recording. Similar to how users could record their screen when on a video call, this could be done in these metaverse collaborations, as well.
Moreover, it could present new opportunities for phishing, identity theft, and even spying. In the metaverse, fraud and phishing attacks and targeting the user’s identity could come from a familiar face, instead of a misleading domain name or an email address. These threats could be deal breakers for enterprises, unless they are checked right at the beginning. To check this problem, constructive steps including making things like multi-factor authentication (MFA) and passwordless authentication integral to platforms have to be adopted.
Experience Some users would not be able to participate in VR due to some physical limitations. Also, some are subject to motion sensitivity, vision impairment, hearing impairment, etc. Often, they become passive observers, as they could not use a lot of the tools within the environment, or encounter major difficulties while trying to use these interfaces in 2D.
Lack of access to the real world Though the use of computers and gadgets and living in virtual spaces have many advantages, there are lot more humans who are used to having access to things in the real world which could not be possible in VR. For instance, if the user wants to drink a glass of water, doing that would be difficult while wearing a headset. The user would not be in a position to see the glass of water, which is in the real world, with the headset on. Increase in the use of VR would lead to lesser access to the real world.
Future of the Metaverse
As with any new frontier, high expectations, fierce competition, uncertainty, etc., would define how the metaverse would evolve.
The adoption of the metaverse technologies is still at an early stage, but it would help business leaders to develop new products, transform the business, or mitigate risks.
Many big companies including Meta, Microsoft, etc., have started investing in the metaverse. With time, there would be more and more companies trying to create a perfect solution and ultimately would lead to even more innovation in this space. Experimenting with our own virtual collaboration for members to gather and interact could boost collaboration and interest among members.
It would impact upon driving strategic business innovation in future. It is expected that by 2026, at least 25 per cent the people would spend no less than one hour in a day in the metaverse for work, shopping, education, social media, entertainment, etc.
Even as there are many security concerns, the metaverse has made some strides across the tech industry in cooperating against the threats as the stakes have risen in the recent years. Also, it would remain as a cornerstone for security as the metaverse platforms and experiences start to shape the future.
Security researchers, chief information security officers, and industry stakeholders also have an opportunity to understand the terrain of the metaverse and use it to their advantage. The metaverse platforms could create and generate entirely new data streams with the potential to improve authentication, pinpoint suspect or malicious activity or revisualise cybersecurity to help human analysts make decisions accordingly.
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