This term metaverse has been popping up everywhere as of late and if you’re like us, you’re still a little confused as to what this actually means and how it will affect businesses. It seems that people are being urged to grab their spot in this virtual world. But why? And to what benefit would one gain from this? We decided to do a little research of our own to better understand what this new virtual world really means. According to an article written by VICE magazine, “the metaverse is an all-encompassing digital world that exists parallel to the real world.” The term was actually coined from a sci-fi novel, Snow Crash written by Neal Stephenson in 1992, which is very interesting. This is 3D world of the internet. My thoughts first go to Simms World but most say it’s much like games, such as Fortnite. In the metaverse, users will be able to create, sell and buy goods. Some argue that creating this digital economy will boost our economy IRL. However, the question on our minds and I’m sure you’re thinking the same thing, “why would I want to buy a house, clothes and the like for an avatar in a world that is technically not “real?” Don’t we all have enough to worry about financially in reality? Well, ROI or return on investments. This is the largest driving factor in the argument for purchasing digital properties. These properties aren’t limited to real estate. It can also include things like art, music, graphic designs, etc. Purchases must be made using NFT currency in the metaverse. NFT’s have a specific unique blockchain for each one created. They give the investor ownership of the virtualized asset. This was spawn from cryptocurrency that is created in a similar fashion. “Cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments.” (Investopedia) This is another blog all in itself but I need to touch base a bit in order to fully understand NFT’s. it has been described as like purchasing a domain name. The purchasers of the NFT’s in the early stages of the meta are seeing the costs of the same properties increasing in value substantially. To be specific roughly 500% since Facebook transitioned to meta (CNBC). The potential financial gain also lies in the fact that these virtual worlds can be rented out. Say Nike wants to rent a space in your virtual mall for their metaverse line. Yes, this does exist already. They have monopoly on the shoe commerce as of now in cyberspace. Basically, the metaverse still has a long way to go in terms of development. Some speculate about 10 years before it’s fully developed. Business owners are seeing potential profits in the future for their properties in the metaverse and thus, the reason for businesses to break into this space now. It is up to each business to decide if the metaverse is right for them. It depends on a lot of factors. What type of business it is, does it financially make sense, and does the company believe that the metaverse will be the future. Some are still skeptical. Bottom line, it’s important for businesses to do research into this new world and decide if being part of it is right for them. One size does not fit all.
