What is the metaverse and what do I need to know to stay up to date?

The metaverse is one of the most exciting and, at the same time, uncertain developments in the world of technology and has come to revolutionize the way we interact with each other and with the digital environment. digital environment.

But it is not only a new interaction channel, but a new reality. new reality Would you attend a virtual concert or sporting event? Would you visit a virtual store where you can try products without leaving your home? These experiences, and many more, are possible in the metaverse and the potential is there for the advertising is infinite.

Advertising in the metaverse offers companies the opportunity to create immersive and interactive experiences that engage users in innovative ways. In this article, we will explore everything you need to know about the metaverse: from its origin, key concepts and most popular platforms. In addition, we will delve into the strategies that brands have implemented to become success stories.

Introduction to the Metaverse

When we think about the definition of metaverse probably the first thing that comes to mind is a virtual space where people interact with each other through avatars, a world apart from our own in which we do not really know what is going on and which is difficult to access. However, it is closer than we think, even in everyday things, and accessing it is not necessarily impossible.

The metaverse is a collective, shared and persistent virtual universe. The word itself does not refer to a specific type of technology, but to a change in the way humans interact with it on a social, economic and cultural level. . This concept employs technologies such as the virtual reality (RV), augmented reality (RA), mixed reality (RM) and extended reality (RE), allowing users to interact in an immersive way in a digital environment. three-dimensional. In addition, the metaverse is part of the industry. Web3integrating technologies such as cryptocurrencies, blockchain and NFTs to enrich the user experience and expand commercial and creative possibilities.

What does all this mean? How do these concepts relate to each other? If you are asking yourself these questions, don’t worry, we will go deeper into this later, but not before knowing how the metaverse originated, how it evolved and where we can find it. Let’s start at the beginning.

Origin and evolution of the term “Metaverse”.

 

The first time this term was used as such was in 1992. 1992in the science fiction novel called “Snow Crash”. by Neal Stephenson, which described an immersive virtual world in which people interacted through avatars. It told the story of Hiro Protagonist, a pizza deliveryman who one day discovers the existence of a computer virus that causes metaverse users to suffer brain damage in the real world.

From that point on, events continued to take place that would contribute to the development of the metaverse. At 2003 Linden Lab introduced Second LifeThe “virtual space”, a virtual space where users interacted with each other and could build and exchange goods. At 2006 was officially launched Robloxa platform where users can create and play games developed by other users. At 2009 the first bitcoin bitcoin under the tutelage of Satoshi Nakamoto, a person whose identity is unknown to this day. At 2012 Palmer Luckey launched the project Oculus to raise funds to manufacture the first 3D virtual reality hardware accessible to the masses. At 2014 Facebook buys Oculus. Also, Kevin McCoy and Anil Dash create the first non-fungible non fungible token (NFT).a unique cryptographically protected virtual asset. The following year Ethereum with the ability to create decentralized applications on blockchain. At 2021 Facebook is renamed as Goal.

And here, for this last event, we will make a separate paragraph. October 28, 2021, Mark Zuckerberg announced that the parent company of Facebook, Instagram, WhatsApp and Oculus would change its name to. Meta. This name change symbolizes a broader focus on the development of the metaverse, something that is seen as the future of social connection.

 

“In that future you will be able to teleport instantly as a hologram to be in the office without having to move, at a concert with friends, or in your parents’ living room to catch up,” Zuckerberg stated.

From Meta they emphasize that this metaverse is not a virtual environment but a new three-dimensional space to be used and that it is possible to access in several ways. a new three-dimensional space to be used and which can be accessed in several ways: “Augmented reality glasses to be present in the physical world, virtual reality to be fully immersed and phones and computers to jump from existing platforms.”

Can we say that with this name change Meta is seeking to take over the concept of the “metaverse”? The truth is that Meta already owns the virtual reality headset manufacturer Oculus, two metaverse projects: Horizon World and Horizon Workrooms and virtual and mixed reality glasses: Meta Quest 3 and Meta Quest Pro.

Horizon World by Meta

 

Meta Quest 3

While it has embraced and popularized this concept and is one of the companies most associated with it, we cannot say that it has owned the term “metaverse” nor is it the only significant platform in this space.

Other companies and projects are developing their own versions of the metaverse, including gaming platforms like Fortnite and Roblox as well as virtual reality initiatives like Decentraland and The Sandbox. These platforms are also contributing to its construction, and in some cases, promoting a more communal and decentralized vision.

While some see Meta’s entry into the metaverse as an opportunity to accelerate the development and adoption of this technology, others are concerned about the possibility of a single company having so much control over this new digital domain. The discussion about who should lead the metaverse and how it should be managed remains a relevant topic in technology and digital culture. The evolution of the metaverse will likely be shaped by multiple actors and perspectives, both corporate and community.

Is the Metaverse closer than we think?

At the beginning of this article, we said that the first thing that comes to mind when thinking about the metaverse is a world of avatars, somewhat unknown and inaccessible. And while it is true that it is a term associated with a futuristic vision and high-end elements (through which we access it), you may be surprised to know that we can also come across this world in some everyday things:

• Social networks

TikTok TikTok: Uses augmented reality to create interactive filters and effects that users can apply to their videos and photos, integrating digital elements into the real world in a fun and accessible way.

• Workspaces

Zoom and Microsoft Teams While not full-fledged metaverses, these platforms are integrating features like interactive meeting rooms that increase the sense of presence and collaboration in remote work.

• Interactive Maps and Navigation

Google Maps With features like Live View, which uses augmented reality to show directions overlaid on the real world through your phone’s camera, Google Maps offers an experience that blends the physical and digital worlds.

• Mobile Games

Pokémon GO and Harry Potter: Wizards Unite – use user location to create real-world gaming experiences, where players interact with virtual characters and objects in their physical environment.

 

TikTok

 

 

Immersive meetings

 

Live View

 

Pokemon Go

 

Is any digital world a metaverse?

As we mentioned before, sometimes the metaverse may be closer than we think, but not all digital worlds can be not all digital worlds can be considered part of it. Here are the key differences that exclude them:

• Closed virtual worlds: Games like World of Warcraft or Second Life are virtual worlds, but not necessarily metaverses because they are usually closed and not interoperable.
• Traditional Internet: Websites and mobile apps are not considered metaverse as they lack its characteristic immersion and persistence.

 

What are the characteristics of the Metaverse?

Well, to answer this question and any doubts you may have in the future about how to identify if something is part of the metaverse, we are going to detail what characteristics must be met:

• Interactivity Users can interact with the environment and with other users in real time.
• Persistence : The metaverse exists continuously, regardless of whether users are online or not.
• Immersive 3D Environments Offers three-dimensional experiences that mimic or extend physical reality.
• Reality Integration Combining elements of the real world with the virtual world, often through technologies such as virtual reality (VR) and augmented reality (AR).

Mobile apps alone , such as a banking app or a game without augmented reality components, are not part of the metaverse because they do not meet most of the above characteristics. They can be interactive, but not in real time or immersive, their use depends on user interaction (it is not continuous), and they do not integrate elements of the physical and digital world in a meaningful way.

For example, WhatsApp allows real-time communication but does not offer significant integration of virtual and augmented reality. Another example is Google Maps which, as we traditionally know it, provides information and navigation, but does not create an interactive and persistent environment. However, the Live View function it developed can be considered part of the metaverse due to its immersive nature.

On the other hand, TikTok’s TikTok filters filters use augmented reality allowing users to see themselves with different visual effects applied in real time, integrating the digital with the physical world and creating an interactive and semi-immersive experience. in real time, integrating the digital world with the physical world and creating an interactive and semi-immersive experience, thus a manifestation of the metaverse.

Types of Metaverse

There are several types and platforms of metaverses, each with its own characteristics and approaches. Some of the best known are:

1. Social Platformsinclude virtual environments where users can socialize, interact and create content, such as Facebook Horizon and VRChat.
2. Gamesvirtual worlds where players can participate in interactive experiences, competitions and in-game social activities, such as Roblox and Fortnite.
3. Professional or Laborvirtual environments designed for collaboration, meetings, events and remote work. An example would be augmented reality virtual spaces for conferences and meetings, such as Mozilla Hubs.
4. Virtual Commerce and Virtual Economyplatforms where users can buy, sell, exchange virtual goods and services, as well as participate in virtual economies, such as Decentraland and The Sandbox.
5. Education and Trainingvirtual environments designed for teaching, training and simulation, enabling immersive and collaborative educational experiences, such as Engage.
6. Health and WellnessVirtual platforms designed for health, therapy and wellness, which may include virtual rehabilitation, cognitive-behavioral therapy and emotional support environments, such as Meditation VR.

 

Virtual, augmented, mixed and extended reality

To understand a little more about this universe and how it becomes a reality, we will go deeper into these concepts and see examples of each one so that you can easily identify them.

 

Virtual reality

 

Virtual reality is an immersive immersive technology that immerses users in simulations, completely isolating them from the outside world where they are physically located. These simulations can represent real spaces or fictional worlds, as is the case with most metaverses.

Augmented reality

 

Unlike VR, in the field of augmented reality the user is not completely immersed, so he still has contact with his environment, but enriched with virtual elements. An example is the Pokemon Go App, in which characters are superimposed on the real world through the smartphone camera, making it more accessible to the user.

 

Mixed reality

 

Mixed reality is a fusion of virtual reality (VR) and augmented reality (AR) fusion of virtual reality (VR) and augmented reality (AR), that combines virtual elements with the physical environment. In it, virtual objects are integrated and respond to the physical environment in real time, as in the case of Microsoft HoloLens, a device that allows interaction with holograms and digital objects integrated into the real environment, combining VR and AR elements.

Microsoft Holo Lens

Extended reality

 

This concept comprises the interaction between the realities mentioned above: virtual, augmented and mixed through a variety of devices. One example is Microsoft Mesh, which integrates virtual reality (VR), augmented reality (AR) and mixed reality (MR) into a single platform. Users can fully immerse themselves in virtual environments through VR devices, overlay holograms on the physical environment with MR through HoloLens, and combine elements of the real and digital world interactively with AR, facilitating applications in education, design and business collaboration.

 

 

What is Web3 and why is the Metaverse part of this industry?

The evolution of the web has gone through several stages, starting with the Web 1.0 in the 1990s, which was static and only allowed reading. Then, at the beginning of the 2000s, the Web 2.0facilitating the interaction and creation of content by users, driven by the emergence of social networks. Now, with the Web3we are entering an era of decentralization thanks to technologies such as blockchain, where users have greater control and participation in the creation and management of content and applications.

 

 

 

 

Web3 is, therefore, a term that encompasses technologies designed to decentralize ownership and control of data on the Internet. Unlike traditional applications, which are controlled by centralized entities, Web3 allows projects to be managed by the community. In these projects, users have control over their data, set prices, contribute to technical development, and exert greater influence on the direction of the project. Interactions are automatically regulated without the need for a central authority.

The metaverse is part of the Web3 because of its focus on decentralization, digital decentralization, digital ownership and interoperability. Here are some examples:

 

1. Decentralizationusing blockchainmetaverse allows the creation of virtual worlds where users have full control over their assets. control of their assets. For example, on platforms such as Decentraland (which we will see below) users can buy and sell virtual land without intermediaries.
2. Digital Property: the NFTs (non fungible tokens) allow for the unique unique ownership of digital assets. In the metaverse, users can own digital art, virtual clothing and more.
3. Digital EconomyThe Digital Economy: Metaverses create their own economies of their own using cryptocurrencies. For example, in The Sandbox, users can create and monetize virtual experiences and objects using the SAND token.
4. InteroperabilityThe metaverse promotes interoperability between different platforms between different platforms and virtual worlds. An avatar or digital asset purchased in one metaverse can be used in another, creating a cohesive and seamless experience for users.

 

What are the most popular platforms?

Now, everything we have been mentioning happens somewhere. Continuing the timeline we presented in the introduction, platforms emerged that meet the requirements to be considered part of the metaverse, that can be classified according to the type of activity developed on them and that work using VR, AR, RE or MR. In addition, the examples we will see below show how the metaverse aligns with the principles of Web3 (which we saw just above) by creating an open, transparent and user-controlled digital ecosystem.

 

From now on it will no longer be a mystery where the metaverse takes place and we will begin to get a little closer to it by getting to know the 5 most popular platforms:

1. DecentralandDecentraland: is a decentralized virtual world that allows users to buy, sell and build virtual land using the MANA cryptocurrency. There, participants can create experiences and monetize their creations..

• Type of reality used: virtual
• Monthly users: about 56,697 users
• Monetization: users can create and sell digital objects and NFTs

 

 

2. The Sandbox: platform for games on the Ethereum network that allows users to create and monetize create and monetize their own content. The project’s native token, SAND, is used to perform transactions within the platform. Everything takes place in a 3D virtual environment.

• Type of reality used: virtual
• Monthly users: 201,000
• Monetization: users can create digital assets and sell them as NFTs in The Sandbox marketplace.

 

3.RobloxRoblox : is a multiplayer platform platform launched in 2006, with millions of users interacting in an immersive 3D immersive 3D environment. Allows users to create and play user-generated gamesbut without using blockchain. The profiles are customizableand users can change their physical appearance using the native token, Robux. Access to the platform is free, but allows in-game purchases to upgrade spaces and earn Robux. Both players and developers need no initial investment.

• Type of reality used: virtual
• Daily users: 52 million
• Monetization: Game developers earn Robux that they can convert into real money through the Developer Exchange Program. In turn, Roblox generates revenue through advertising and branding agreements.

 

4.Axie Infinityis a Play-to-Earn game (P2E) hosted on the Ethereum network. Use NFTs to represent characters, terrains and assets. Your native token, Axie Infinity Shards (AXS), is used to feed Axies, compete, buy land and participate in the governance of the game. Players must open an account, connect a wallet and access the marketplace to improve the skills of their Axies and participate in the game.

• Type of reality used: virtual
• Daily users: its popularity has waned, it reached over 2.5 million daily active users at its peak.
• Monetization: users can breed Axies and sell them on the marketplace. In addition, earn rewards by participating in battles and tournaments that can be converted into real money.

 

Cryptovoxelsvirtual world where users can buy land, build property and exhibit digital art. Its focus on creativity and digital property has made it a favorite among digital art enthusiasts.

• Type of reality used: virtual
• Monetization: is a smaller platform where users buy and sell virtual properties using cryptocurrencies, mainly using Ethereum for transactions. In addition, they can organize events and paid experiences on their plots.

Why are they profitable?

Now we know what each platform is about, the number of users that participate in them and what their monetization models are. So what makes them profitable and why are brands interested in advertising on them?

• Sustainable Virtual Economy: metaverse platforms such as Decentraland, The Sandbox, Roblox, Axie Infinity and Cryptovoxels are profitable thanks to their sustainable virtual economies. The sale and resale of land and digital assets creates a continuous revenue stream. In addition, cryptocurrencies and NFTs drive the internal economy of these platforms, encouraging investment and trade. This economic model allows these platforms to maintain a steady flow of transactions and revenue-generating activities.
• Creators Ecosystem: user- and developer-generated content continually increases value and activity within the platform. A high level of user participation generates more transactions and use of premium services, which in turn increases revenue. Users are motivated to actively participate because of the creation and monetization opportunities available.
• Income Diversification: brands pay for advertising and for organizing events within these virtual environments. In addition, subscription and micro-transaction models generate recurring revenue as users make small in-game purchases and subscribe to premium services. This combination of revenue streams ensures a solid and diversified financial base.
• Projections and Statistics: the metaverse market is growing rapidly. It is estimated that the metaverse market will reach USD800 billion by 2024 and could exceed USD1.5 trillion by 2030, according to Statista. In addition, an eMarketer survey shows that 30% of marketers plan to invest in metaverse advertising in the next two years.

 

This growing interest from brands and increasing market value ensure that these platforms will continue to be profitable and attractive to both users and investors.

 

Future projections

In 2023, the size of the metaverse market amounted to more than US$56 billion and could increase fivefold by 2025, according to forecasts made by Statista. This growth will be driven by:

• Adoption of virtual and augmented reality platforms: platforms such as Decentraland, The Sandbox, Roblox, and others are gaining popularity among users and businesses, providing virtual environments where users can interact, create, and trade.
• Investments by large companies: companies in technology, entertainment, fashion and other sectors are investing significantly in the development and expansion of the metaverse, driving market growth. For example, Nike has launched virtual sneakers on Roblox.
• New business opportunities: The metaverse offers new forms of commerce, advertising, education, and entertainment, attracting both consumers and businesses looking to take advantage of these opportunities.

In this graph we can see that although the largest volume corresponds to e-commerce and gaming, it is not a minor fact that the metaverse begins to cross other areas of human life such as health, fitness, workspaces and education.

Statista

Now, to understand the scope of the metaverse in terms of users, we will see how its volume increased since 2022 and its projection for 2030:

 

Number of metaverse users worldwide between 2022 and 2030 (in millions)

 

The increasing incorporation of digital platforms in industries for daily operations and increasing usage of VR, AR, MR, and RE by consumers, especially in artistic and recreational activities, are significant factors driving the growth of the metaverse market.

 

Conclusion and opinion of the team

Coming to the end of this article, we can conclude that the metaverse definitely represents an evolution in the way we relate to each other. From here, physical and digital experiences converge. From the Boomit team, we believe that it is key to closely follow the evolution of this new universe, since there will be more and more opportunities for interaction, not only between humans, but also between brands and their audience. In the next part of this article, we will go further and talk about the possibility of advertising in the metaverse. What would happen if you launched a new product within a virtual world? Have you already thought about this opportunity for your brand?