The Metaverse concept is a 3D platform where users can take part in a constantly evolving virtual world. The Metaverse should be seen as a continuation of the evolution of the internet, with the user at the center. On this 3D platform you will be able to meet other people, play games, shop and work.
Facebook’s conversion to Meta
Mark Zuckerberg explains in the Meta launch video that Facebook’s identity to the market is to be a platform that enables people to connect. He says that what makes Meta unique is that the majority of the big tech companies focus on how the user interacts with technology instead of how tech can enable contact.
He also argues that the Metaverse is a legacy and hence adjacent to the original idea of connecting people, something Mark refers to when referring to how social networking worked at the launch of Facebook.
Zuckerberg himself states that the ultimate outcome of technology is to create connectedness, the ability to “teleport” everywhere and thus create deeply interfaced experiences. Zuckerberg returns to the fact that today’s devices are optimized for applications, not the user. The result of this is a more forced and shallower typeface that limits ideas as a result.
He says that Metaverse can presumably be the solution to these problems but that it will require cooperation from all of us, including creators, developers and companies of all sizes. Metaverse will be a platform where the individual is at the center and technology revolves around them.
Despite Mark Zuckerberg’s launch video, it’s still hard to really grasp what the Metaverse is. This is partly because it does not currently exist as Zuckerberg describes it. Metaverse is not only a stand-alone platform but will interact with other technological segments such as VR, AR, blockchain and crypto curreny. Together it builds what Zuckerberg describes as the Metaverse.
Metaverse, a new sales channel?
As the interest in AR and how it can impact e-commerce grows, one can speculate on how this will work in the Metaverse. The question to ask is how comfortable the consumer is with online shopping using AR.
- The company Invespcro conducted a survey on this very topic to find out how positive today’s prospects are about using this tool. The following ones were the result:
- It was found that 61% of online shoppers preferred to shop on a website that uses AR technology.
- 63% of customers felt that AR technology enhanced the experience of shopping online.
- 77% of customers indicated that the ability to preview and design to their liking was preferable.
- 70% of consumers are likely to be more loyal to brands that use AR technology as part of their online store.
This survey shows that in most cases, the majority of consumers are in favor of using technology for the purpose of e-commerce. The AR technology facilitates the purchase of e.g. simple products like cosmetics, shoes and clothes that are usually difficult to get right the first time, but also more complex configurable products like cars, machines or lab equipment. This is something that companies that offer free delivery can save a lot of money, as the accuracy of the customer is more precise.
Virtual real estate agencies have also been created where you can buy or rent properties as well as land. Many companies are now jumping on the Metaverse train and investing millions of dollars to secure land space in any of the 4 major most popular spaces, Sandbox, Decentraland, Cryptovoxels and Somnium. In 2021, $500 million worth of land was sold and this is expected to rise to $1 billion in 2022.
Zuckerberg claims that the Metaverse will be a bigger and more creative economy than we have ever experienced. Where we are today, we can only speculate on how this will work. Questions we should ask ourselves are whether the user gets targeted advertising in the 3D world? Will there be a freemium-premium business idea where the user can pay not to experience advertising like Spotify and Youtube use? Will we go shopping in digital stores in the 3D world and then have the goods delivered to our homes in real life?
Crypto and the place of NFTs in the Metaverse
For the Metaverse to become something more than the already existing VR communities such as Second Life and VR Chat, the ownership of digital assets needs to be secured in the form of evidence. A digital proof of ownership is through a virtual wallet containing keys. This information can demonstrate the ownership of assets that are part of the blockchain itself.
To ensure that your assets are also digitally identifiable, NFTs (Non Fungible Tokens) are used. This makes it possible to create something that is completely unique and therefore cannot be copied. This will be a cornerstone of what Metaverse aspires to be.
A digital currency must also be established to enable the economic ecosystem that Mark Zuckerberg envisions the Metaverse to become. This will be done through some form of cryptocurrency. An important question to answer is whether the currency used in the Metaverse is decentralized or centralized.
Summary
Metaverse should be seen as a long-term project, with problems along the way. We still have a lot to learn about what Metaverse will mean for the development of the internet as well as e-commerce. But if the Metaverse is all that Mark Zuckerberg and other tech giants aspire it to be, it is the next big step in digitalization.
