Metaverse is an immersive 3D (three-dimensional) virtual realm that integrates various aspects of users' lives. It represents a convergence of virtual and physical experiences, creating a seamless and interconnected digital universe where individuals can interact, collaborate, and explore. Within the metaverse, people can engage in a wide range of activities all in real-time. Specifically, a crypto metaverse is a metaverse that incorporates blockchain into its underlying technology and crypto assets, such as metaverse tokens, into its economy. Examples of crypto metaverses and protocols that incorporate metaverse elements include Decentraland, Cryptovoxels, Alien Worlds, Axie Infinity, and The Sandbox. ^[1][2]

Overview

The metaverse is a virtual world where an individual can connect with other people through their digital avatars. It represents an emerging 3D-enabled digital space that leverages technologies like virtual reality (VR), augmented reality (AR), and advanced internet and semiconductor technologies to provide users with lifelike and immersive personal and business experiences in the online realm. The metaverse is a convergence of digital and physical elements, enabling people to interact, socialize, work, play, and conduct various activities in a highly realistic and interconnected virtual environment. ^[3][4]

Metaverse was popularized by Neal Stephenson in his 1992 science fiction novel "Snow Crash." The book envisions a futuristic world where people interact with each other and software agents use avatars within a vast online-enabled virtual realm known as the "metaverse." This virtual space, as depicted in the novel, was a pioneering concept that anticipated the potential evolution of the internet and virtual reality technology. ^[5]

Concepts of the Metaverse

Metaverse relies on the concepts of "virtual reality, augmented reality, and mixed reality". ^[6]

Virtual reality (VR)

In the metaverse, virtual reality plays a crucial role in creating immersive, entirely digital environments. VR technology transports users into computer-generated worlds where they can interact with the environment and other users using VR headsets and controllers. This concept mirrors the idea of being fully immersed in a digital realm, which is a core aspect of the metaverse. ^[6]

Augmented Reality (AR)

Augmented reality enhances the physical world with digital overlays and information. In the metaverse, AR can be used to blend digital elements and interactions with the real world. Users might access the metaverse through AR glasses, overlaying digital information, objects, or avatars onto their physical surroundings, creating a seamless integration of the digital and real worlds. ^[6]

Mixed Reality (MR)

Mixed reality combines elements of both virtual and augmented reality. It allows digital objects and interactions to interact with the physical environment in real-time. In the metaverse, MR can enable users to have dynamic and interactive experiences where virtual elements coexist and interact with real-world objects and spaces. ^[6]

Features

Metaverse has specific features and capabilities that can vary widely between platforms and projects. It is often used broadly to describe immersive virtual environments, and as technology evolves, new features and functionalities may continue to emerge. Despite that, the following are common features of the metaverse: ^[7]

• Virtual Worlds: Metaverses are often composed of interconnected virtual worlds or spaces where users can navigate and interact with their surroundings.
• User Avatars: Users typically create and customize avatars to represent themselves in the metaverse. These avatars can be personalized in appearance and often serve as the user's virtual identity.
• Real-Time Interaction: Metaverses enable real-time communication and interaction among users. This can include text chat, voice chat, and even non-verbal communication through avatar gestures.
• User-Created Content: Users are often empowered to create and share their own content within the metaverse, including virtual objects, buildings, or even entire virtual worlds.
• Economy and Currency: Many metaverses have their own virtual economies and currencies. Users can buy, sell, and trade virtual goods and services using these currencies.
• Social Interaction: Metaverses emphasize social interaction, allowing users to meet, socialize, and collaborate with others. This can extend to virtual parties, events, and gatherings.
• Persistent Environment: The metaverse is typically a persistent virtual space, meaning it exists and evolves continuously, even when users are not online.
• Cross-Platform Access: Metaverse platforms often aim to be accessible from various devices, such as PCs, VR headsets, mobile devices, and more, to maximize user engagement.
• Immersive Technologies: Virtual reality (VR) and augmented reality (AR) technologies are frequently integrated into metaverse experiences, offering a more immersive and interactive environment.
• Gaming and Entertainment: Many metaverses include gaming elements and entertainment options, from virtual concerts and theaters to multiplayer games and activities.
• Privacy and Security: As metaverses involve social interaction, they typically address privacy and security concerns to protect user data and ensure a safe environment.
• Customization and Personalization: Users often have the ability to customize their virtual spaces, homes, and avatars to reflect their preferences and style.
• Ecosystem and Marketplace: Metaverses often have marketplaces where users can buy, sell, and trade virtual assets, from digital clothing to virtual real estate.
• Community and Social Networks: These platforms foster communities and social networks, enabling users to connect with like-minded individuals and groups.
• Scalability: Metaverse platforms aim to handle a large number of concurrent users and a growing virtual world while maintaining performance and stability.

Benefits/Applications of Metaverse

The major advantage of the metaverse is its potential to identify and realize novel applications that can revolutionize the way individuals use the internet and related digital communication technologies. Its ability to redefine how people connect, create, and engage with digital technologies presents a wide range of opportunities for innovation and novel applications that can transform various aspects of people’s lives. The metaverse represents a new frontier where technology, creativity, and human interaction converge to shape the future of digital communication and experiences. Below are some of the benefits and applications of the metaverse: ^[5]

Enhancing blockchain technology

One significant advantage of the metaverse is its capacity to enhance and expand upon the applications of blockchain technology. Blockchain technology, which fundamentally functions as a decentralized and distributed database, serves as an immutable ledger for recording transactions. Through the technology, cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), Cardano (ADA), etc., and digital assets such as NFTs (non-fungible tokens) were created and distributed. The emergence of NFTs through blockchain technology has given rise to a novel trend in the gaming industry, promoting the concept of "play-to-earn." In these games, players have the opportunity to earn income and acquire in-game digital assets that hold tradable and usable value across different platforms and game titles. These games are commonly referred to as NFT or blockchain games, with Axie Infinity being a notable example. ^[5]

Recall that a metaverse represents a shared digital realm of virtual space, fostering collaboration and participation among internet users. Therefore, blockchain applications like cryptocurrencies, the tokenization of content through NFTs, blockchain games, decentralized finance (DeFi), and cybersecurity are all activities that thrive within the metaverse and are empowered by the collective engagement of internet users. ^[5]

Expanding social media beyond Web 2.0

Mainstream social media platforms such as Facebook, TikTok, Twitter, and even communication tools like Zoom confine digital human interaction to a two-dimensional (2D) plane as users of these platforms find themselves limited to staring at their mobile screens or computer displays. However, Mark Zuckerberg, the CEO of Facebook, recognized the metaverse's potential to offer people a more natural means of connecting and expressing themselves. ^[5]

In response to this insight, he pioneered the development of a metaverse platform designed to provide a deeply immersive experience that fosters a profound sense of presence. Subsequently, Facebook underwent a rebranding transformation and emerged as Meta, signifying a shift towards being recognized as a social technology company, transcending its previous identity solely as a social media company. ^[5]

Creating and promoting a virtual economy

Interactive video games such as RPGs (role-playing games) and MMORPGs (massively multiplayer online role-playing games), as well as action games, simulation games, and casual games, are notable examples of virtual economies existing in the current digital realm. They have internal virtual economies, as demonstrated through in-game acquisition and exchange of in-game assets. ^[5]

The metaverse's immersive and interconnected nature, combined with its digital infrastructure and virtual economies, makes it a promising platform for conducting a wide range of transactions and exchanges, blurring the lines between the digital and physical realms. It offers exciting possibilities for businesses, creators, and consumers to engage in novel forms of commerce and interaction. ^[5]

Projects using the Metaverse

The announcement of Facebook's name change to Meta and its strong emphasis on the metaverse has generated significant attention and interest in this emerging concept. It has accelerated discussions and developments related to Web 3.0, cryptocurrencies, and NFTs, as these technologies are integral components of the metaverse vision. Below are some of the projects utilizing metaverse technology: ^[2][3][8]

• Meta (Facebook)
• Axie Infinity
• Decentraland
• SecondLive
• The Sandbox
• Illuvium
• Roblox
• Epic Games