The metaverse has become one of the biggest buzzwords in blockchain and crypto, as it promises to deliver a more immersive, interactive and collaborative experience than the Internet has ever seen.
In this promise of a new world, big enterprises like Meta (formally known as Facebook) are investing huge sums of money in the emerging space. When most people hear the name Metaverse, their mind wanders to a few things: an avenue for the global conglomerate to show its technology-forward leanings, an esoteric product for a select few that can offer non-fungible tokens (NFTs). Or represents a new frontier in gaming development. However, a deep dive into the metaverse reveals a whole new world, a world full of new opportunities and risks for both consumers and businesses.
Although the current metaverse ecosystem may be populated with giant corporations, eventually, for widespread adoption, small businesses will have to make a transition. Looking at the historical pattern in the adoption of new technology like internet, mobile payments etc., it is clear that small businesses play an important role in connecting the masses.
One of the key insights from Facebook’s Connect 2021 was that the arrival of the Metaverse is imminent, but the deadline for widespread adoption stretches back at least a decade. A study conducted by Pew Research found that about 54% of top technology innovators, developers and businesses. Meanwhile, policy leaders believe that by 2040, the metaverse will be a functioning aspect of daily life for half a billion or more people globally.
The urgency of transitioning to the metaverse may not be immediate, but businesses should consider the technology, at least in the periphery. By strategically using resources now, an enterprise will be able to improve the experience for future customers.
To understand what opportunities and risks the Metaverse brings to the business, it is imperative to understand the infrastructure of the Metaverse. John Redoff, CEO of 3D gaming company Beamable, is classified into seven layers:
- Infrastructure: This layer is the semiconductor, physics, cloud computing and telecommunications networks that enable the creation of layers on top of it.
- Human Interface: Human interface layer refers to the hardware that will be used to access the metaverse. This includes everything from mobile devices to VR headsets.
- Decentralization: Build everything without permission, on a distributed and democratic framework.
- Spatial computing: This layer refers to the software that brings objects into 3D and allows the hardware interface to interact with them.
- Creator Economy: Make it easy for creators to create and monetize Metaverse projects.
- Discovery: Ways of discovering experience.
- Experience: Users can engage with sports, social experiences, live music, etc.
In all likelihood, most small businesses will be involved in bringing the Metaverse experience to their customers. Speaking to Cointelegraph about the disruptive potential of the Metaverse, Naveen Singh, co-founder and CEO of decentralized data management network Inri, said:
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“It is no longer a question that the Metaverse will be a major disruptor to the digital economy. The real focus now is on which industries the Metaverse will be most important to. As a gateway to a new digital economy, the Metaverse will serve as a gateway to multiple domains. opens up new possibilities for the
“The industries most likely to undergo change and feel the immediate impact of the metaverse are gaming, fashion, entertainment, media and retail. At the same time, one of the most defining properties for the Metaverse to unleash its full potential will be the interoperability across its fabrics,” he said.
Metaverse is reshaping industries
The gaming industry has traditionally been a leader in the adoption of cutting-edge technologies, and the same is the case for the metaverse. Many gamers already consider the Metaverse to be the next frontier in gaming. Developers say that today’s gaming can often feel lonely. Although multiplayer gaming solves the problem of isolation to an extent, the Metaverse takes immersion and community to a whole new level. Communities created by Metaverse projects like Decentraland, Axie Infinity and Sandbox provide not only social benefits but monetary benefits as well.
However, the current metaverse gaming space is dominated by big firms. Research and development for Metaverse games is generally out of budget for small businesses. Nikita Sachdev, founder and CEO of Luna PR, believes real estate, along with gaming, is another sector that could potentially see the metaverse adopting. Sachdev told Cointelegraph:
“For real estate, companies and agencies are always looking to pre-plan sales and develop ways for foreign investors to visit and visualize properties. Imagine if you could develop an entire complex even before it was developed. Can you visit it? Investing in real-world property will become a lot more immersive and the ‘open house’ will no longer be needed.”
The global real estate market is estimated to be worth more than $3 trillion, and any potential dent in this space could have enormous economic and social impacts.
Fashion is another area that can be disrupted by the metaverse. In fact, there’s already been a successful Metaverse Fashion Week featuring runway shows, after-parties, immersive experiences, shopping, panel talks and more.
Wahid Chammas, co-founder of Faith Tribe – an open-source design platform – believes that since the metaverse and fashion are ultimately about identity, they are bound to complement each other. Speaking to Cointelegraph, he said:
“People venture into the metaverse and do all sorts of things to live and portray an identity that they are not living in the physical realm. Wearables are undoubtedly the best suited to display your personality and identity. The physical This link between digital and increasing your perceived identity, we believe, will lead to further disruption in both the physical and metaverse worlds of fashion for brands taking digital fashion seriously.”
Metaverse risks
Exposure to the metaverse may put smaller businesses at greater risk. The ecosystem is still shaping up and the erratic and nascent character of the metaverse could derail some businesses’ roadmaps. Elaborating on this point, Jake Fraser, Head of Business Development at Mogul Productions, told Cointelegraph:
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“Technical expertise and knowing how to structure an environment for users is virtually a fluid space and it requires people to keep their finger on the pulse in order to execute the best user experience. For the user as well There has to be value and something unique they can’t get from your brand anywhere else. If there isn’t a clear ‘hook’, adoption from businesses can be difficult.”
What is clear, however, is that venturing into the metaverse for related companies not only helps businesses be future-ready, but also makes their current offerings more attractive. The benefits far outweigh the risks. Aurora42 CEO George Narita told Cointelegraph:
“The most significant risk is not getting into the metaverse world. I see a lot of opportunity, especially for early adopters, just as it was at the beginning of the dotcom era; not many understand how to communicate. It is not enough just to be in the Metaverse. Those who have a disruptive vision and provide experiences and emotional connections by co-creating with their followers will be the ones ahead. People today want to be a part of the creation of this universe, not just passive. “
