The concept of the metaverse, why this technology is so interested, or the technical challenges… It’s a question that many people wonder about the virtual universe.
What is metaverse?
The term metaverse has been mentioned by Neal Stephensen since 1992 in the science fiction novel Snow Crash. It depicts a virtual world where humans interact with each other through digital avatars. Films like The Matrix and Ready Player One are the best examples of this idea. The term began to gain attention when it was mentioned by Mark Zuckerberg, CEO of Meta, at an event in June.
There is no unified concept of metaverse yet, but technology companies believe the virtual universe is not only a place to vividly recreate real-life experiences in digital environments, but can also integrate both of these environments.
Mr. Tri Pham, CEO of Whydah, a Vietnamese startup on the blockchain, said: “Metaverse is a rather confusing concept for many people, while there are countless controversial views. However, there are four basic properties of a metaverse: The convergence of online and offline experiences; Continuity; Digital ownership, and Identity Autonomy.
The Meta Universe is imagined to be a scenario in which two people can attend a concert together even though they are on two different continents. Meanwhile, gaming companies aim to build an economy in the metaverse with the support of blockchain technology.
Key technologies will include human-machine interface devices such as VR and AR glasses, multidigcle graphics, AI, computing power, software, and hardware to create user avatars.
The Origin of Metaverse
The definition of Metaverse was introduced in the early days of the Internet, it was mentioned in Neil Stephenson’s 1992 novel Snow Crash, which was later re-enacted in Ernest Klein’s “Ready Player One”. The content is about a virtual life in the digital world that exists in parallel with the real world outside.
If taken literally, Meta means “Beyond or beyond” and Verse stands for Universe, so we can simply understand that Metaverse is a concept outside the real universe. Metaverse can be seen as an open world, participants can build and live in that world.
Metaverse is seen as a technological breakthrough of the future, but these remarkable technological ideas are very abstract and difficult to define accurately before they are widely adopted. Examples can be mentioned as the 4.0 technology revolution such as IoT (Internet of Things), cloud computing, or sharing economy … It is becoming widely used in our lives, but not everyone understands them.
Structure of layers in the metaverse
Layers in Metaverse
4 basic layers make up the metaverse including:
- Foundation Layer: The foundation for connectivity is the Internet.
- Infrastructure Layer: In terms of infrastructure for Metaverse, it can be mentioned that hardware components help us have an authentic experience. In addition to the hardware components, the technologies to form metaverse are also in this layer (some technologies can be mentioned as Blockchain, AI, Big Data, …).
- Content Layer: On this layer, we will have games, applications that help users immerse themselves in one or more different worlds, for the most vivid experience.
- True Metaverse: This is the last layer of the Metaverse, when the lower layers develop to some extent, we will have a true Metaverse.
During the development process, we can see that, when the foundation layers are completed, they will become the foundation for the layers on them to grow. And in the process of that development, the layers will always be updated as well as constantly developed, specifically as follows:
- The internet is now very developed, but research units are continuing to produce different Internet technologies, which are getting faster and more convenient (typically 5G technology today).
- On the Internet class, we can see that the infrastructure class is also growing very strongly, the big players are still very strong in the hardware component race, as well as the platform technologies are increasingly coming into practice.
- In the Content class, we can see the first forms of Metaverse in the form of titles, and this layer is still waiting for further improvement from Infrastructure to be able to explode in the future.
Metaverse features
Some of the characteristics of Metaverse can be mentioned as:
- Sustainability: Metaverse is a sustainable system that continuously provides services and content to an increasingly growing and rich ecosystem.
- Immersion: The purpose of the metaverse is to build a virtual sharing space outside the real world. So, it has to come with VR, AR, and even brain-computer interface technology, which features 3-D photo sharing that gives a sense of real-time interaction and recognition.
- Openness: Openness means metaverse allows participants to connect or disconnect at any time, and it must be an open space that allows creations to become unlimited.
- Economic system: An economic system in parallel with reality. Participants can move their assets between the real world and the Metaverse easily, as well as rely on making innovative innovations in the metaverse to accumulate and increase their assets.
The evolution of metaverse
Metaverse is not an outburst-out concept, it is a good imagination based on the development and evolution of science and technology. For a more specific and accurate classification of the industrial ecosystem and the laws of future development, it is fundamental to understand the history of metaverse development.
In the development of the metaverse, we can mention the following three core components:
Internet: Infrastructure for virtual connectivity
The Internet was a prerequisite for the birth of the Metaverse. It provides network connectivity to form the infrastructure for the metaverse’s virtual connections. This can be considered the next evolution of the Internet.
VR, AR hardware system
VR stands for virtual reality, which refers to simulation technology to create and experience the virtual world. AR stands for augmented reality, which integrates virtual information with the real world to achieve a surreal sensory experience.
Although the early development of VR/AR technology may have originated in the 1950s and 1960s, it wasn’t until 2012 that it was introduced to the public with an Oculus-mounted VR device and a Google Glass AR device.
Blockchain: An Open and Transparent Economic System
With the current context, the Metaverse industry is joined by a lot of large technology companies including hardware, software, blockchain, gaming, … However, these platforms cannot interact with each other. For example, you cannot exchange valuable items in Fortnite for a similar item in Minecraft.
Metaverse will be perfected with blockchain-enabled technology for the following reasons:
- Blockchain interoperability: assets on different blockchains can be easily moved back and forth via the Cross-chain bridge.
- Scalability: Existing blockchains such as Avalanche, Solana, Polkadot all possess huge scalability.
- The personalization of blockchain is expressed through NFTs – unique and irreplaceable tokens.
- Security, transparency: Blockchain technology is a place to help secure users’ digital assets from hacker attacks.
On the other hand, the development of DeFi as an intermediary bridge promotes the economic activities of blockchain technology. It has met every aspect of the needs of a decentralized financial system.
You can imagine when there is a need to trade goods on metaverse, where there are already DEX non-business exchanges or marketplaces. When you need a loan or loan, lending and borrowing protocol models can be easily implemented.
THE POTENTIAL COMES FROM METAVERSE.
Web 2.0 signs have declined and the door of the new era of Web 3.0
“Metaverse will be the biggest revolution of the computer platform ever — bigger than mobile events, bigger than the web-producing revolution,” Marc Whitten, senior vice president, and t-creation manager at Unity Software, said in a speech to The Wall Street Journal.
You may be wondering what Web 3.0 has to do with Metaverse, right? Because the nature of Web 3.0 will be decentralized and operated through decentralized networks (the same networks on which blockchain and cryptocurrencies are built). At the moment, people interact online by visiting traditional platform sites that tech people call Web 2.0, social networks, or using 2D apps.
From the time I was in school, I remembered the joke that ‘with just one search bar, the knowledge of the whole world will be in my hands. Now from email to texting, watching videos, livestreaming, … Everything is thanks to the Internet. However, everything has limits and so does the Internet. Facebook is so addictive, but why are they turning to the new world? There are a lot of reasons for that but there’s something wrong with the way we build our online space today.
For example, social networks are only 2D platforms and not closely linked and we are also being exploited and controlled too much information. Web 3.0 focuses on 3D graphics, three-dimensional design that will be used in websites and services to provide clear images to users. For example, museum tutorials, computer games,… In my opinion, this is one of the essentials to fix web 2.0 and the basis for the formation of Metaverse.
Metaverse won’t be a groundbreaking technological miracle
Here, I will conclude metaverse is the future of technology where people, wherever they are, can keep a smooth connection through virtual reality glasses and the next generation to use the Internet as the foundation. However, to see metaverse breakthrough as a big revolution as Marc Whitten said, I think it is not enough or say ‘new bottle of old wine’ is not completely accurate. Metaverse is, in fact, an evolution from existing foundations.
Looking back on the development of AR, VR, this technology is almost completely present in life and the same way of development as smartphones. Hardware vendors make products and app developers make integrated content. NFTs, blockchain, or crypto are all being built and booming, even in Vietnam, these technologies have become a trend and are always at the top of search keywords. In general, these technologies are still budding in daily life, so it will take some time for us to get used to the phrase Metaverse.
How big is metaverse?
With a huge vision of creating a world parallel to the current world of the Metaverse, you can imagine how big this market will be.
Currently, the data we have collected shows that the total volume of assets globally by the end of 2020 amounted to $418,300B. Therefore, overall this is a very huge market and there are still a lot of growth opportunities in the future.
However, this is a very distant vision in the future, so what are the current figures? According to research from LD Capital, the Metaverse industry will consist of two main components:
- Hardware industry: Including the hardware manufacturing industries (chips, electronic components, augmented reality devices, etc.) is the infrastructure that enhances the experience for Metaverse.
- Content industry: All the platforms (mainly games) that help us immerse ourselves in the metaverse. In this field, you can also mention social networks or sharing platforms such as Youtube, Tiktok, … But with a true Metaverse, I think these platforms will integrate directly with the game.
For the hardware industry, according to research I’ve collected from The Business Research Company, in 2020, the industry globally is worth about $862B with a compound annual growth rate of up to 9.4%.
For the gaming industry, industry is currently worth about $170B.
Thus, although metaverse has not developed in its true form, what exists today is already worth up to trillions of dollars. Not to mention that when augmented reality products are widely available, this will be the foundation for the Metaverse Gaming market to grow even stronger.
In addition, with Metaverse’s “Beyond Universe” vision, it is very likely that in the future all real-life assets will be brought to metaverse to create a true parallel world (possibly even beyond it).
⇒ This has resulted in the industry reaching hundreds and trillions of dollars.
Metaverse potential to a huge market as big companies enter
Bloomberg estimates the Metaverse market value will be worth $800 billion by 2024. According to research firm IDC, the global virtual reality device market will grow by more than 50% this year, with a total of 9 million devices expected to ship a total of 9 million devices. By 2025, this number could reach 28.7 million devices. In May this year, on Roblox, a popular gaming platform with kids, the digital version of a Gucci bag sold for more than $4,100 — more expensive than the real version.
The world’s leading tech companies are not out of the game.
Microsoft
Microsoft is entering the race to build Metaverse inside Teams, just days after Facebook rebranded it as Meta to build virtual spaces for both consumers and businesses. Microsoft will bring Mesh, a collaborative platform for virtual experiences, directly to Microsoft Teams next year. It’s part of a major effort to combine the company’s mixed reality and HoloLens operations with meetings and video calls that anyone can participate in thanks to animated avatars.
Tiktok
Bytedance, the company that owns TikTok, joined Metaverse in acquiring a VR-focused startup called Pico. The acquisition is reminiscent of Facebook’s acquisition of Oculus in 2014, which is expected to lead to a new wave in the VR sector in China.
The online gaming company platform is the main character in this race
On September 3, Tencent Holdings, China’s largest gaming company, registered the trademarks ‘Timi Metaverse’ and ‘Kings Metaverse’ to pave the way for the future of its QQ messaging service as well as online gaming Honor of Kings. The company also introduced Wave as an online music platform to bring a new music trend to China.
Epic Games, the well-known game manufacturer Fortnite, is one of the leading companies in the field of metaverse content production. The company has just received a $1 billion investment from partners to create the supersonic space.
Entertainment oligarchs don’t want to be abandoned.
Netflix
Netflix has begun tapping into the value of digital supermarkets after hiring Mike Verdu as its vice president of game development (according to The Verge). Netflix already has acquired a list of intellectual property (IP) from movies to games and can use these brands to drive larger solutions for rich experiences and e-commerce. Recently, the film streaming company has shown a growing interest in immersive entertainment and virtual reality (VR) products.
Netflix made inroads into VR following the release of “Black Mirror: Bandersnatch” in 2018, which was hailed as an extraordinary success with its immersive storytelling style. The online giant also entered the video game market following the release of Black Mirror, Stranger Things, Squid Game to compete with rival platforms such as Microsoft Gamepass and Sony Playstation Now.
Disney
On November 10, 2021, Walt Disney (DIS) CEO. Bob Chapek says the entertainment conglomerate is preparing to make the technological leap into a virtual reality world first created by science fiction writers. In an interview with CNBC, Bob Chapek envisions Disney’s Metaverse as an extension from the Disney online video service, through a new form of storytelling that he calls the ‘three-dimensional fabric’.
Chapek assured investors that Metaverse is in line with the direction of Disney, which has a history of technological innovation for nearly a century. When Steamboat Willie came out, it was considered the first animated feature to have a sync sound.
Will metaverse make the fashion industry transform?
In his view, Metaverse ushers in a new era of fashion. Creativity will be open to seemingly limitless margins. All ideas, all senses, all visions will be expressed authentically and without being constrained by any physical barrier. The fashion that we often call ‘wear on people’ will have framed limits with certain shapes. While fashion will become more diverse, unique, more disruptive than usual in the Metaverse world.
Nike
According to CNBC, Nike has filed a new trademark application indicating its intention to produce and sell virtual goods (shoes and clothing). In addition to new registrations for trademarks, Nike is also looking for personnel in the field. According to Nike’s hiring information, the company recently posted a job posting for a virtual material designer for footwear along with other virtual design positions.
WHY IS BLOCKCHAIN THE IDEAL PLACE TO DEVELOP METAVERSES?
Metaverse can be set on the background of many different types of technology. However, in a world that emphasizes unlimited creativity, interaction, and decentralized freedom like Metaverse, it seems that Blockchain will be one of the key technologies of this world.
Blockchain is the key to a true metaverse
When you look at an infographic by Jon Radoff about metaverse below, you can partly explain why.
As can be seen in the picture, the Metaverse industry is joined by many technology companies, including hardware, as well as software, blockchain, gaming, …
As I have mapped out above, the content class is the closest form to Metaverse, currently only has the presence of centralized technology companies such as Google, Facebook, Twitter, Netflix, … or names in gaming such as Playstation, Fortnite, Roblox, Unity, …
One problem that can be seen in these platforms is the inability to interact with each other. You can’t move or exchange a very rare item in Fortnite for an equivalent item in Minecraft.
In addition, the property you own does not belong to the brothers in these games, which makes personalization & ownership not appreciated. And sometimes just a few factors such as laws or company policies can disappear from your account.
And all of the above problems can be solved on blockchain technology:
- Scalability: The current blockchains offer huge scalability, especially for blockchains with the Internet of Blockchain concepts such as Avalanche, Polkadot, or Cosmos.
- Interoperability: Assets on different blockchains can completely move back and forth through Cross-chain technology.
- Ownership & Privacy: This is most evident through NFTs – unique tokens and cannot be replaced.
- Security: Blockchain technology with high security will help assets in your cyberspace avoid attacks from hackers.
In addition to the above characteristics, Blockchain & Crypto has initially created a simple economic system with the development of DeFi. DeFi (or Decentralized Finance) serves as an intermediary bridge for these economic activities to be carried out easily. You can imagine some basic aspects as follows:
- When there is a need to trade goods on metaverse, we already have decentralized exchanges (DEX) or marketplaces that operate in a decentralized and creditless manner.
- The demand for transferring assets across different chains is that we already have cross-chain bridges.
- The need to borrow money to do business on Metaverse already has Lending Protocol.
- Or with payment applications like Payment Dapps, we can easily transfer assets from the real world and into the crypto market.
As such, Blockchain technology is well suited for the development of Metaverse – a parallel virtual world, for unlimited scalability and creativity as well as promoting personalization and decentralization.
Crypto’s market cap now amounts to more than $2,000B along with hundreds of billions of DOLLARS of TVL in DeFi platforms, not to mention the huge value coming from the NFT market and countless different DApps. Therefore, there are absolutely grounds to believe that blockchain technology will be one of the key technologies for building metaverse.
The puzzle piece needed for the development of metaverse in crypto
In that foundation, layers are blockchains, especially blockchains for high scalability and design with the Internet of Blockchain concepts such as Polkadot, Avalanche, Cosmos. Or it could be blockchains with high scalability like Solana, Near, and high storage capabilities like Mina, etc.
The next layer is the Dapps built on the background of the blockchains. It could be NFT, metaverse gaming-driven Dapps like Decentraland and The Sandbox. Or simply deFi platforms serve the development of Metaverse Economy later.
And finally, it’s the cross-chain bridges that help metaverse ecosystems be linked together, and in this class, creativity, expansion, and interaction will be pushed to absolute levels.
Currently, for Metaverse on Crypto, we can see that it has not developed for the following reasons:
- The platform layer is not fully developed. Currently, the largest ecosystem is Ethereum, however, this blockchain has shown many disadvantages in terms of transaction speed as well as scalability.
- Blockchains with the Internet of Blockchain concept are only the first steps in creating an ecosystem.
- Current Metaverse gaming Dapps such as Sandbox or Decentraland are not yet able to give a smooth experience like traditional games.
- In addition, cross-chain technology is not yet complete, as evidenced by the recent cross-chain-related hacks.
METAVERSE AND THE GAMING INDUSTRY
Ernest Cline’s novel Ready Player One and Steven Spielberg’s CGI horror film of the same name have given an outline of how video games will lead to the creation of the metaverse.
Wade lives in a backward future, as the population becomes a crisis, climate change and a host of other problems have left the world devastated. Metaverse is his only way out. This metaverse video game allows the protagonist to enjoy his life, make great friends, and forget about the difficulties in his reality for a while.
When it comes to video games, almost everyone immediately thinks of entertainment, but its potential is much greater. Video games and the digital world can simulate real-world environments and even push the limits of reality to contribute to improving lives in a variety of ways.
Today’s game publishers have been looking to make this jump. Fortnite publisher Epic Games is one of those companies that is working extremely hard to turn their video game universe into a metaverse.
Fortnite is a battle royale game genre. In recent years, they have expanded to host an in-game concert with some of the world’s most famous musicians, such as Travis Scott and Ariana Grande. Most recently on August 26, Epic Games teamed up with Times Magazine, to give Martin Luther King Jr. the lifetime speech in Fortnite.
Roblox is also a major gaming company that is hungry to create metaverses. Their game has been around for more than a decade in which allows users to build their digital world and interact with friends online. Roblox recently decided to go public, and largely due to its intention to pursue metaverse, the company has reached a valuation of more than $39 billion.
From there, it can be seen that, if someone is going to pursue metaverses, they will need to start with the gaming field first.
Metaverse and Blockchain Gaming
Axie Infinity (AXS) – 2018
Axie Infinity is a product of Sky Mavis startup with Vietnamese founder and CEO Nguyen Thanh Trung. Launched in early 2018, it is a blockchain-based game that allows players to fight, collect, feed and build a realm of their own. In just 3 years, Axie Infinity is one of the hottest names in the gaming market in the world and is considered as the first flag to bring the NFT series to players around the globe.
The biggest attraction of Axie Infinity is that this game uses NFT (Non-fungible token) technology. Accordingly, the objects in the game will be unique, cannot be faked or cloned like most other titles. From there, these items can be traded and sold between gamers in their virtual currency in the world of Axie Infinity.
Decentraland (MANA) – 2017
A year before Axie Infinity, Decentraland, a virtual reality (VR) real estate platform based on Ethereum’s Blockchain, allows you to create an economy based on tokens to own land in a virtual reality environment. The point I like about Decentraland is that we can completely shop for land, drive, study … and the land on Mana is worth owning permanently. You can create content on the ground without worrying. What’s more, Decentraland content is completely independent, from 3D to rich games.
The Sandbox (SAND) – 2012
The Sandbox is a virtual world where users can build and monetize their gaming experience on the Ethereum network and the nucleus of this world is the SAND token. Players can create digital assets in the form of NFT (interchangeable token), transfer this asset to the marketplace and integrate it into games with Game Maker.
The origin of sandbox games is based on combat and teleportation games in space such as Elite (1984). This sandbox game is improved, building a more and more detailed game system and developing more social interaction, and sharing content in the game on the internet.
Minecraft – 2011
Minecraft is an open-world game where you can tap into tool crafting resources, build buildings and create your world, as well as interact with other players through different features and game modes. Minecraft (2011) is one of the most successful examples of sandbox games with players able to enjoy both creative and survival modes in a way that better defines goals in the virtual world.
Roblox – 2006
Launched in 2006, Roblox allows you to create your games and then play them with other users. The Game Company has been oriented as an entertainment platform that is portrayed as delivering experiences. The platform is now home to millions of different user-generated experiences, most of which have the structure of a game but others are life activities such as listening to concerts, shopping, and attending virtual awards ceremonies.
What makes Roblox not the real Metaverse, however, is that the items in Roblox will only apply within the scope of the platform. While a metaverse is really where you can go from Roblox to Horizon, Minecraft, or Fortnite as you like without turning off one game to open another.
Online gaming platforms like Fortnite, Minecraft, and Roblox are being built to go beyond mere gaming and are becoming broad social platforms in their own right, as well as hosting virtual clubs, competitions, concerts, and other events. The emerging Metaverse concept has been raining down the market for months. Together with NFT and blockchain game genres, metaverse projects help perfect the picture of how blockchain and cryptocurrencies will be used in practice.
DOES THE METAVERSE RACE BRING REAL VALUE? WHAT IS GAINED AND LOST?
Metaverse is virtual, but the future value is imdigible
Of course, there’s reason to believe that Metaverse will help us do a lot of things that the Internet can’t. Today’s virtual reality experiences have allowed us to visit real estate remotely, the prospect of real estate agents being able to use Metaverse to take potential customers to a 3D home that is closely proportional to the actual product. Customers can go see the new house without having to leave the old house.
The Covid pandemic has devastated the service and tourism industry, making famous buildings and places from crowded suddenly become quiet, shopping routes are not a shadow of people. With Metaverse, technology helps digitize all buildings and places and helps tourists anywhere just while sitting on a small sofa. A true Metaverse could go even further than that as applied to medical therapies.
One of the most exciting and potential areas as Metaverse grows is the marketing of brands and the activities of the content creator and influencer community. Over time, as more and more people become involved in virtual universes, brands also need to build their presence – creating a digital twin. We’ll see Gucci, Dior,… in cyberspace, where our surrogates can go there, shop, and own genuine digital bags.
What will people have to trade when they join metaverse?
Besides, the development of the Metaverse is still controversial. The experience of using Metaverse will create new problems for society. Users will have a vivid immersive feeling as if they are directly living in the virtual world and from there they will forget about reality. Adolescents of developmental age can be adversely affected by being engrossed in metaverses. In addition, many people can take advantage of this to produce addictive ‘digital banned substances’.
On the other hand, a fully functional Metaverse can take years and huge research investment costs. According to experts, the potential risks associated with Metaverse can be mentioned as cybersecurity risks, proprietary technology, and being controlled by big players.
Privacy and cybersecurity in the virtual universe?
“Facebook whistleblower Frances Haugen says metaverse “requires us to put more sensors in our homes and workplaces.” She said companies should have a transparent plan for the virtual universe before starting to build “new worlds.”
Haugen isn’t the only one who emphasizes privacy and user data. David Reid, professor of AI and spatial computing at Liverpool Hope University, is also calling for metaverse adjustments before “technology becomes a reality in the next 5-10 years.” Metaverse has a huge impact on society. Besides the great advantage there will be scary dangers,” Reid was quoted as saying by Nikkei.
He said the world is in the early stages of the metaverse, but people need to discuss the risks involved now before going down the irreversible path. Privacy, data, security in the virtual universe will be important issues of the future.
Why is metaverse just the trick of current technology?
Despite being hailed as the next revolution in technology, I feel the big guys are overly excited about metaverse or it’s too early to judge things. First, we can see from the case of Facebook, which officially changed its name to Meta in the face of a series of public relations crises and tightening the management of privacy-related executives. This action is probably just a trick that causes public opinion to turn to Metaverse as a way to refresh the brand.
The barrier that makes it difficult for Metaverse to make big enough progress is the policy issue. Lawmakers haven’t even solved the problems that social media alone brings, let alone another virtual society. The case of virtual currencies such as Bitcoin or in-game money is not widely accepted is the most typical evidence. I think metaverse is just an evolution from these available platforms to legitimize things.
Conclusions
There will certainly be a long way to go for Metaverse to creep into the nook and cranny of everyone’s life. Metaverse is still a futuristic concept and not yet a boom time due to many legal barriers as well as hardware technology. However, we cannot deny the investment potential from the big players that shows that Metaverse can become a trillion-dollar industry in the future. A space for business, entertainment, commerce and is the ideal workplace.
