Home The Cointelegraph Top 100 2023 The Metaverse

#43

The Metaverse

Are we there yet?

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“The metaverse is here, and it’s not only transforming how we see the world but how we participate in it — from the factory floor to the meeting room.” — Satya Nadella, chairman and CEO of Microsoft

Biography:

The term “metaverse” dates back to 1992 when author Neal Stephenson first mentioned it in his sci-fi novel Snow Crash, referencing a virtual world where people live and work using digital avatars. The concept of the metaverse encapsulates characteristics such as a sense of immersion, real-time interaction with thousands of people, and user-generated content. 

One of the most successful early virtual worlds is Second Life, a 3D massively multiplayer online game with user-generated content and real-time interaction that launched its beta version in 2002. The game became a success, reaching a peak of nearly 1 million active users in 2013. Users — known as residents — can own in-game properties, acquire jobs and even invest using Linden Dollars, the platform’s currency. Residents of Second Life can purchase Linden Dollars with U.S. dollars through an exchange called LindeX.

The metaverse concept continues to evolve as digital and physical worlds become more interconnected. In 2021, Facebook announced plans to build its own metaverse — a virtual world with entertainment, social presence and office work. The company rebranded itself Meta and said it would invest $10 billion in the concept over the year, leading to global hype surrounding the metaverse.

Other companies making billion-dollar investments in the metaverse have included tech giants such as Nvidia, Qualcomm, Google and Microsoft. In the crypto space, decentralized and blockchain-based platforms such as Decentraland, The Sandbox, Axie Infinity, Metahero, Star Atlas and many others have created their own metaverses, allowing users to buy virtual lands and goods sold by real companies and virtually represented by nonfungible tokens. Furthermore, brands such as Nike, Disney, Balenciaga, Coca-Cola and Hyundai have already debuted in the metaverse. 

The Metaverse’s 2022:

For crypto and blockchain companies, 2022 was an incredibly challenging year. But despite that, metaverse projects managed to raise over $120 billion in the first half of the year alone, according to a report from McKinsey. Major traditional institutions also embraced the Web3 revolution, including JPMorgan Chase, which opened its first virtual lounge in Decentraland in February, calling the industry a $1 trillion opportunity.

User experience and interoperability between platforms were among the challenges faced by metaverse firms in 2022, with these barriers likely to persist in 2023. 

The Metaverse’s 2023:

The metaverse economy is expected to reach $5 trillion by 2030, according to McKinsey. The gaming and retail industries will likely play a significant role in the growth of the metaverse sector in 2023. The sector may experience a slowdown, given 2023’s economic outlook, but this would also allow projects and companies to work on infrastructure improvements to welcome the next wave of users.

People may have different interpretations of what the metaverse is as the concept evolves. Many believe it to be the next development of social media — a new way for people to meet and make friends — while others think it has the potential to boost crypto adoption worldwide as more brands and companies embrace blockchain-based solutions as a part of their vision of a Web3 future.