The Metaverse has become one of the biggest buzzwords in blockchain and cryptography, promising to provide a more comprehensive, interactive and collaborative experience than the internet has achieved so far.
This promise of a new world has prompted a giant company like Meta (formally known as Facebook) to invest large sums in future space. When most people hear the name Metaverse, their minds wander to several things: a way for international conglomerates to demonstrate their technical flexibility, a mystical product for a select few to display inflexible symbols (NFTs) or a new facade in game development. However, a deep dive into Metaverse reveals a whole new world, a world full of new opportunities and risks for both consumers and businesses.
Although the current Metaverse ecosystem could be built by giants, small businesses will eventually have to change in order to get a wider adoption. Looking at the historical patterns in the introduction of new technologies such as the Internet, mobile payments and more, it is clear that small businesses play a significant role in bringing the masses on board.
One of the important insights from Facebook Connect 2021 was that the advent of Metaverse is imminent, but the timeline for broad adoption is spread over at least a decade. A study conducted by Pew Research found that about 54% of key technological innovations, developers and companies. At the same time, policy leaders estimate that by 2040, Metaverse will be a viable part of daily life for half a billion or more people worldwide.
It may not be urgent to switch to Metaverse right away, but companies should consider technology at least on the periphery. By using resources systematically now, companies will be able to improve the experience for the customers of the future.
To understand the opportunities and risks that Metaverse poses to companies, it is important to understand the infrastructure of Metaverse. Jon Radoff, CEO of 3D game company Beamable, categorized into seven songs:
- Infrastructure: This layer is semiconductors, materials science, computer clouds and telecommunications networks that make it possible to build a layer over it.
- Human interface: The human interface refers to the hardware that will be used to access the metaverse. This includes everything from mobile phones to VR headphones.
- Distribution of power: Build everything on an unlicensed, decentralized and democratic system.
- Spatial computing: This layer refers to the software that brings objects into 3D and allows the hardware interface to communicate with them.
- Author Economy: Make it easy for creators to generate Metaverse projects and generate revenue from them.
- Discovery: Ways to discover the experience.
- Experience: Users can participate in games, social experiences, live music and so on.
In all likelihood, most small businesses will be involved in bringing the Metaverse experience to their customers. In an interview with the Cointelegraph about the disruptive potential of Metaverse, Naveen Singh, co-founder and CEO of Inery’s distributed data management network, said:
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“There is no longer any question that Metaverse would be a major disruption to the digital economy. The real focus right now is on which industries Metaverse would be most important to. As a gateway to a new digital economy, Metaverse opens up new possibilities for several areas.
“The industries that are most likely to undergo a transformation and feel the effects of Metaverse immediately are games, fashion, entertainment, media and retail. At the same time, if Metaverse unleashes all its potential, one of the most important features would be synergy across its content, “he said.
Metaverse is reshaping industries
The gaming industry has traditionally been a pioneer in adopting the latest technology, and the same is true for Metaverse. Many players already consider Metaverse to be the next frontier in games. Developers say that today’s games can often be lonely. Despite the fact that multiplayer games solve the problem of isolation to a certain extent, Metaverse takes immersion and society to a new level. Communities created by Metaverse projects such as Decentraland, Axie Infinity and Sandbox provide not only social benefits but also monetary benefits.
However, the current Metaverse gaming space is dominated by large companies. Research and development for Metaverse game is generally out of budget for small businesses. Nikita Sachdev, founder and CEO of Luna PR, believes that alongside games, real estate is another sector that could potentially be a former user of Metaverse. Sachdev told Cointelegraph:
“For real estate, companies and agencies are always trying to develop ways to travel and provide properties for sale in advance and foreign investors. Imagine if you could look at an entire compound before it was even developed? Investment in real estate will be much more comprehensive and “open houses” will no longer be necessary. “
It is estimated that the global real estate market is valued at more than $ 3 trillion, and any potential for this space could have a huge economic and sociological impact.
Fashion is another sector that could be disrupted by Metaverse. In fact, it has already been a successful Metaverse fashion week that included runway shows, after parties, a comprehensive experience, shopping, panel discussions and more.
Wahid Chammas, co-founder of Faith Tribe – an open source design platform – believes that since Metaverse and fashion are ultimately about identity, they must complement each other. In an interview with the Cointelegraph, he said:
“People venture into Metaverse and do all sorts of things to live and describe a self-image that they may not live in the physical realm. Wearables are without a doubt the best way to show your personality and identity. By having this connection between physical and digital underlines your perceived self-image, we believe there will be a further disruption in both the physical and metaverse world of fashion for brands that take digital fashion seriously.
Risks associated with Metaverse
Exposure to Metaverse can be more risky for small businesses. The ecosystem is still taking shape and uncertainty, and Metaverse’s start-up could lead some companies down the road. Jake Fraser, head of business development at Mogul Productions, explained this point, telling the Cointelegraph:
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“Technological knowledge and knowing how to plan an environment for users is really a fluid space and requires people to have their finger on the pulse to perform the best user experience. There also needs to be value for the user and something unique that he cannot get from your brand elsewhere. If there is no clear “hook”, it can be difficult to bring adoption from companies. “
However, it is clear that investing in Metaverse for the company in question not only helps companies to be ready for the future, but also makes their current offer more profitable. The benefits far outweigh the risks. George Narita, CEO of Aurora42, told the Cointelegraph:
“The most important risk is not to enter the metaverse world. I see plenty of opportunities, especially for early adopters, in the same way it was at the beginning of the dotcom era; many did not understand how to communicate. Just being in Metaverse is not enough. Those who have a distracting vision and provide experience and emotional connection by creating with their followers will be ahead. “Today, people do not want to be idle, they want to be part of the construction of this universe.”
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