The fast development of technology, however, has made it evident that the metaverse is no longer a far-fetched prospect. It's important to think about how other technologies, like GPT (Generative Pre-trained Transformer), may be used to improve and mold the metaverse experience as it takes shape.
Options For Using GPT In The Virtual World
OpenAI's GPT is a cutting-edge language processing AI that can create natural-sounding text for several uses. It's not clear what all the possible applications of GPT in the metaverse might be.
Machines That Act As Though They Are Human
The development of chatbots and other forms of artificial intelligence is one area where GPT might be put to use in the metaverse. These AI-driven creatures might provide useful guidance to users as they explore the metaverse in search of particular information or engage in social activities. Metaverse information, including descriptions of virtual environments or character dialogue, might similarly be generated using GPT.
Engaging Interactions
In the metaverse, GPT may also be used to design engaging activities. To create more interactive and unique experiences, GPT might be used to generate replies to user input. Using GPT to create personalized replies and difficulties for each user might be very helpful in online events and games.
Possible Advantages Of GPT In Promoting Metaverse Usage
Not only may GPT be useful in the metaverse, but it also possesses the ability to increase support for the metaverse as a whole.
Making this virtual setting available to a larger audience might be a positive outcome. The ability to employ GPT to create material and text in many languages would greatly expand the potential audience for the metaverse.
Virtual Reality Game Theory
The metaverse is shorthand for a completely engaging and realistic virtual reality. It's a digital world where users may experience lifelike interactions with other users, virtual items, and surroundings. The metaverse has been hailed by some as a game-changer for society because it can facilitate new forms of interaction and innovation in the workplace and the daily lives of people everywhere.
Digital Personas
Potential applications of GPT in the Metaverse include the development of more lifelike and convincing digital avatars. Given GPT's capacity to produce text that sounds human, it may be used to program artificial personalities capable of holding convincingly realistic conversations with people. Using this, we could build digital helpers, digital friends, and digital educators and trainers.
Experiences That Are Unique And In-Depth For Each Individual
The development of interactive and sensory encounters is yet another possible use of GPT in the metaverse. It is feasible to develop a system that generates material specific to the patient's likes and choices by developing a GPT algorithm on data associated with a certain VR machine or activity. Individually tailored quests, adventures, and tests might be made possible using this information.
Several Metaverse Advantages of GPT
Utilizing GPT in the metaverse may provide several advantages. Notable examples include the following:
Better realism and believability in virtual characters and environments means more interactive and immersive experiences in the metaverse built with GPT. This has the potential to increase the number of people using the metaverse by making it more enticing to them.
Customization: GPT may make material according to the individual's tastes and preferences. The result would be a more customized and individual encounter in the metaverse, which might be more enticing to certain people.
Advantageous for those without the proper tools to fully engage in a more complicated virtual environment, GPT may be used to construct virtual assistants and other interactive characters that can help users.
What's The Deal With ChatGPT And Other AI Chatbots?
Using large neural network models, advanced chatbots can grasp human language thanks to advancements in the natural-language processing software. Thanks to learning algorithms, they're capable of comprehending a broad spectrum of human languages and offering a diverse range of responses to client queries.
Data retrieval, customer support, and even creative writing are just some of the domains where this innovation might be put to use. The adaptable software lets you modify the bot's vocabulary and dialogue in response to customer feedback. ChatGPT's platform is extensible, thus it can be utilized to develop several separate chatbots simultaneously.
Possibility of Metaverse Enhancement and Revolution via GPT
Taking both GPT and the metaverse together, we might see a dramatic shift in how we perceive and navigate virtual worlds. Using GPT to design smart entities that can comprehend and react to human speech allows us to build more lifelike virtual worlds. If this happens, more people will want to visit the metaverse, and companies will have more chances to utilize it as a marketing and sales tool.
In addition, GPT's deployment in the metaverse has the potential to inspire the creation of novel uses, such as e-learning, treatment, and travel in virtual worlds. Future innovations are certain to be much more intriguing as GPT as well as the metaverse begin to mature.
Is the Metaverse Finally Over?
Based on everything we've heard so far this year, it seems like AI chatbots would be extremely appreciated in the Metaverse. Providing consumers with an environment that is more lived-in and natural than what is currently available on other platforms.
DappRadar data shows that across the two metaverse sites, Decentraland as well as the Sandbox, there were fewer than 1,000 "everyday regular members." The figures above only account for the overall amount of purse addresses that have interacted with the system's consensus mechanism. Not total visitors, which are larger, however still under 10,000.
Could Artificially Intelligent Chatbots Fill in the Blanks?
This author has shown that AI chatbots stand out too much in a heavily packed metaverse to be considered ambient noise. After all, today's chatbots are disciplined enough that they won't engage in trolling or flaming; they're more likely to be model citizens of the internet. Humans, in general, are not this way. It's not terrible, but it may render the metaverse a little blander.
A future without technology that could recreate an infinite number of human-like talks, however, is unthinkable. It's just too simple and inexpensive to be worth doing.
What's The Deal With ChatGPT And Other AI Chatbots?
Using deep neural network models, modern chatbots can grasp human language thanks to advancements in natural language processing technology. Thanks to machine learning, they're capable of comprehending a broad variety of human languages and providing a wide range of responses to user queries.
Information retrieval, customer service, and even creative writing are just some of the domains where this technology might be put to use. The adaptable software lets you modify the bot's vocabulary and dialogue in response to user input. ChatGPT's technology is extensible, thus it may be used to develop several separate chatbots simultaneously. In most cases, a chatbot powered by AI will have three main parts.
Three models are utilized to produce replies according to user factors of production: a natural language comprehension engine, which understands natural speech utilizing machine learning utilizing billions of instances throughout the web; a language processing model, which produces natural speech and develops tailored answers; as well as a conversation regulation network.
All artificially intelligent chatbots have these three components, which are built upon one another. Collectively, they contribute to a simulation that is almost human in its realism.
In-Metaverse Robotic Customer Support
Companies have flocked to metaverse networks as their popularity has increased to meet user demands and raise product awareness. Some of the most well-known companies in the world have opened up shop there, hoping to get customers to spend their money once again. Over the last two years, several well-known brands, including Calvin Klein, and even KFC, have opened virtual storefronts in the virtual world of Decentraland.
Chatbots powered by AI allow big conglomerates to staff their shops without increasing their wage expenditure. Since the middle of the 2000s, chatbots providing customer support have become more widespread. Using MSN Messenger, SmarterChild had preteens and teenagers chatting with a computer as soon as 2001.
While previous AI generations were impressive, the next generation is light years ahead of anything seen in the 2000s. Non-crypto natives may benefit from this human-like customer support as they learn to navigate the Metaverse. Although the crypto industry is well aware of automated tools like Bitcoin 360 Ai, you can learn more here. While it would be helpful to have a buddy who is well-versed in Web3 and DeFi protocols, not everyone has access to such a person.
Reading through several internet discussion threads and how-to articles helps shorten the learning curve. However, sophisticated AI chatbots may eliminate the need for specialized vocabulary, making decentralized finance and NFTs accessible to a far wider audience.
Things Aren't Perfect
Nevertheless, there are drawbacks to this. The prevalence of low-cost, almost limitless chatbots as mobile, speaking characters runs the risk of watering down the Metaverse's credibility. If you have had any kind of extended experience with a contemporary chatbot, you know they aren't quite right. They have excellent replies, but they tend to follow a pattern.
A recent analysis by Barracuda claims that bots now account for 64 percent of all website traffic. Even while most robots are fundamentally distinct from AI-powered characters, it's not out of the question that AI-powered characters may come to dominate the Metaverse.
If you bombard a popular AI chatbot with questions, eventually it will give you an incorrect answer. Moreover, they often express their falsehoods with stern assurance. After barely three days online, Meta, Zuckerberg's AI company, shut down Galactica, an artificial intelligence language model educated on scholarly papers, because of erroneous and biased findings.
The use of artificial intelligence chatbots like ChatGPT may potentially increase the invasiveness of capitalist monitoring systems. If sometime in the not-too-distant future we devote loads of effort to metaverse portals, a world inhabited by AI chatbots is merely the next step in the Big Data business model.
A certain amount of moderation on the side of both systems and consumers is going to be necessary when it comes to the usage of fabricated human avatars. Although advantages now outnumber disadvantages, this might change in the future. Since, in a dystopian future, it may be impossible to tell human beings from non-human ones, this is an important question to ask. Hopefully, the fact that this essay doesn't sound like it was typed by a robot is the only clue you need to know that a human being was behind its creation. This difference will vanish in the foreseeable future.
Final Thoughts
There are no constraints whatsoever. Increasing numbers of people will use ChatGPT to make stunning text-to-image suggestions as its popularity grows. Engineers will likely compete with one another to create the most difficult and creative suggestions.
One fact is certain, though: text-to-image exercises are a fantastic method to hone your writing abilities and push your imagination.
A metaverse is an online virtual world, typically referred to as a three-dimensional virtual environment, where people can interact with each other, create content, and build virtual worlds. Metaverse platforms allow users to build and own virtual real estate, shops, businesses, and other types of digital assets.
What Are Metaverse Platforms?
Metaverse platforms typically offer a variety of ways to buy virtual property. These include buying directly from the platform, buying from other users, or buying from a marketplace. The most popular metaverse platforms are Decentraland, Cryptovoxels, Sandbox, and Somnium Space.
Buying directly from the platform is the most straightforward way to acquire virtual property. Most platforms have marketplaces where you can browse and purchase land, buildings, and other assets. Depending on the platform, there may be different types of currency to use for purchases, such as Ethereum or Bitcoin.
Buying Properties In Metaverse
Buying from other users is also an option. Many metaverse platforms have their peer-to-peer marketplaces where users can buy and sell virtual property. This is often done with the native currency of the platform, but some platforms also accept traditional currencies like US dollars.
Finally, you can purchase virtual property from a marketplace. These are third-party platforms that act as brokers between buyers and sellers in the metaverse. So, if you’re looking to get a property in the meta space, the possibilities are endless. Visit this site to know more about metaverse assets and crypto coins.
Kinds Of Metaverse Platforms To Know About
Metaverse platforms are virtual worlds curated through blockchain technology that enable users to create and interact with 3D objects and characters in a digital space.
Social Metaverse Platforms
Social metaverse platforms provide users with a virtual environment for socializing, creating, and connecting with others. These platforms typically have a built-in 3D chat system, allowing users to communicate with each other in real-time. They also feature tools for customizing avatars and creating 3D objects, as well as support for virtual events such as concerts and parties. Popular examples of social metaverse platforms include Second Life and Sansar.
Game-Based Metaverse Platforms
Game-based metaverse platforms typically feature detailed 3D environments, as well as robust tools for character customization and game development. Popular examples of game-based metaverse platforms include Roblox, Minecraft, and Entropia Universe.
Educational Metaverse Platforms
Educational metaverse platforms are designed to provide an interactive learning environment. These platforms typically feature tools for creating 3D simulations, as well as support for virtual classrooms and events. Popular examples of educational metaverse platforms include VR Classroom and Edorble.
Entertainment Metaverse Platforms
Entertainment metaverse platforms are designed to provide users with a virtual environment for experiencing media. These platforms typically feature tools for creating interactive 3D objects, as well as support for streaming audio and video. Popular examples of entertainment metaverse platforms include HuluVR and NetflixVR.
Commerce Metaverse Platforms
Commerce metaverse platforms typically feature tools for creating 3D stores, as well as support for virtual currency and transactions. Popular examples of commerce metaverse platforms include Decentraland and VirBELA.
As technology continues to advance, new and exciting platforms are being developed to offer users even more possibilities for virtual exploration and engagement.
In Summary
Most marketplaces will offer a variety of different types of property, from basic plots of land to more elaborate creations like businesses, shops, and homes.
No matter which option you choose, buying virtual property in the metaverse is an exciting way to explore this emerging technology. With the right platform and some research, you can find the perfect piece of digital real estate for you.
The global economy is the scrimping that goes for all countries globally.
What Is The Global Economic Revolution Exactly?
The Global Economic Revolution is powered by technology and fueled by a shift in the way people interact with it. We’re seeing the rise of new digital businesses, the emergence of new markets, and the development of new financial instruments. The Global Economic Revolution has made it easier for businesses to reach new markets, and for individuals to access those markets. Venture capital possibilities have also arisen as a result of the ease with which companies may now reach international marketplaces. This has led to an increase in venture capital, and the emergence of new investment vehicles such as crowdfunding and Initial Coin Offerings (ICOs).
The Global Economic Revolution has also had a profound impact on the way people make payments. Digital currencies are not controlled by banks or governments, and they offer users the ability to make payments in a secure, fast, and cost-effective way. Alternative forms of financing such as venture capital and Initial Public Offerings (IPOs) have made it easier for businesses to raise funds. This has enabled them to expand their operations and create new products and services.
The Effects Of Metaverse On World Trade
The ability to interact and transact in virtual worlds, combined with the use of cryptocurrencies, has opened up a new realm of commerce and investment opportunities. This has created a new level of economic activity and has the potential to revolutionize the way we interact with one another and conduct commerce.
The metaverse is a world where people can create and own virtual assets, and where people can purchase and sell goods and services without the need for physical presence. This virtual world is built on blockchain technology and is becoming increasingly popular for its potential to revolutionize the way we do business.
What Changes Have We Seen After Metaverse Was Introduced?
The impact of the metaverse has created a new class of investors who are eager to invest in virtual assets and is attracting a wide range of businesses and entrepreneurs. The metaverse is becoming a new market for entrepreneurs and businesses, who can take advantage of its low barriers to entry and its potential to scale quickly. With the introduction of virtual currencies, people are now able to send and receive payments from anywhere in the world, with near-instant transaction speeds and secure transaction records.
The emergence of the metaverse has also had a major impact on the global economy in terms of its potential to create jobs and spur economic growth. The metaverse offers the potential to create new kinds of jobs and to reduce the cost of labour. This could lead to increased productivity, and could potentially lead to a more equitable distribution of wealth. Learn more about this revolution and the digital assets created by it.
In Summary
Even while the metaverse is still evolving, it already has the power to drastically change how we interact with one another and do business. Its potential to revolutionize the global economy is clear, and it is likely to have a profound effect on the global economy in the years to come.
The Global Economic Revolution is transforming the way we do business. It is ushering in a new period of progress and wealth for the whole world economy. As we move forward, we can expect to see even more changes in the global economy as a result of this revolution.
According to DappRadar, the ten largest virtual worlds have generated over $1.9bn in digital real estate sales since their conception.
This period included many multi-million pound transactions from metaverse real estate firms and big brands, plus individuals - including one user who spent $450,000 on a plot of land neighbouring US rapper Snoop Dogg. It is now estimated that the digital real estate market will continue to grow 31% year-on-year for the next six years.
Amidst a cost-of-living crisis, the thought of investing cash into owning virtual property in the metaverse might sound absurd. But big brands such as Nike, Gucci, Sony and Spotify have already spotted the opportunity to reach new audiences and are hedging their bets that the metaverse is here to stay.
The spike in average digital property prices also shows that many people may still have disposable income to invest. For younger people unlikely to get a foot on the ‘real’ property ladder any time soon, virtual property is offering a cheaper and more accessible alternative.
For brands and users alike, the potential unlocked by blockchain technology in the metaverse is alluring. Concepts such as decentralised governance and token-based micro-economies have the power to revolutionise transactions and the nature of ownership. Cryptocurrency communities are hopeful of a future detached from current conventions, operating outside of the financial turbulence and uncertainty in physical markets.
Recent data exploring digital land ownership confirmed this shift in attitude towards digital ownership. With the average price of a plot of land at $3,300 in June 2022, research from Virtua found that nearly half (48%) of all Americans and a third (33%) of all Brits are more likely to buy digital land than physical property. The research also found similar figures (46% of all Americans and 30% of all Brits) think that digital property will provide a more significant return on investment than bricks and mortar in five years’ time.
It’s important to remember that, as with any purchase, nothing is guaranteed, and it is always important not to ‘hit and hope’ for profits that may not materialise. Nobody should be spending more than they can afford, especially on assets that they don’t fully understand. So it’s absolutely crucial, especially for first-time buyers, to be well-informed before they take their first steps onto the digital property ladder.
Here are five recommendations to consider before making your first purchase:
Know what you are dealing with
Before you start acquiring digital real estate, you should have a relatively good understanding of the technical mechanisms, for example, smart contracts and land deeds, that impact the buying and selling process. Digital properties are digital assets that come with similar logistical features that you’d expect to see on the printed and digital documentation provided by real estate agents in the physical world. Whilst the blockchain does autonomise this process, the absence of a centralised third party to help manage your acquisitions and activity requires you to assume more responsibility. Whilst you can purchase metaverse property through digital brokers and property managers, there isn’t currently any regulatory or licensing stipulations that they operate under, so working with reliable third parties will also be down to your own due diligence.
Get a wallet
Purchasing a metaverse property means that you are purchasing a digital land deed. The deed itself is a unique piece of code which stores all of the transactional history and values of the property on the blockchain, verifying your right to ownership by adding a layer of code. In order to complete a transaction (whether it be buying the deed or selling the deed on) you will need a digital wallet that is compatible with the specific cryptocurrency that the particular metaverse platform uses. Until you’ve selected and set up the right kind of wallet and relevant cryptocurrency, you will be unable to make any investments - so be sure to do your research and have everything in place.
Choose your metaverse platform wisely
As in the physical world, location is important when choosing your virtual HQ. Naturally, there are influential factors about a place that we weigh up when considering where to live. It’s the same with the metaverse. As with physical property, the value of digital land can fluctuate according to the popularity of its location. Factors such as brand and influencer interaction, user engagement, gamification and creative initiatives within a particular metaverse will all play a factor in determining the value of your digital property now and in the future.
Don’t go in blind
It might sound obvious, but it’s true: know what you’re buying. Firstly, are you buying a plot of land on which you can build a property? Or are you buying a property that is already built? If you’re buying a plot of land without a property, what kind of property are you going to build? Are you familiar with the architectural design tools that will allow you to build something competently? Are you planning to buy a home that your avatar settles in, or are you investing in a property that you plan to develop, customise and either rent out or sell on? These are all questions you should ask yourself. As within the physical world, having a clear strategy for your purchase is totally necessary.
Consider utility
Remember that a digital property and its accompanying land deed is a type of NFT. The greater utility an NFT provides, the more valuable it can be. With digital property utility can come in many forms. The most obvious would be their foundational traits such as flexibility to design and build on and also having space to showcase digital artwork. A metaverse platform might also add exclusive perks to your land deed, adding unique traits and boosting its value. For example, owning a property in a more desirable location might afford users the luxury of having rights to vote on conditions and procedures of that particular metaverse, or perhaps having access to useful resources that can be deployed in gamified aspects of the space. Finding out the utility that your land deed provides should be a priority in your purchasing decisions.
Interested in making your first acquisition? Sign-up to the Virtua Prime white list to learn more.
Major players such as HSBC and JPMorgan are already leading the way in adopting the technology, with the latter’s report, Opportunities in the Metaverse, estimating that the metaverse poses a market opportunity of $1trn in annual revenue.
Creating world-class digital experiences
As organisations look to the future, having a metaverse presence has the potential to not only create virtual environments for staff and customers, but provide new ways to analyse trends, as well as extend digital operations into areas like cryptocurrencies, and generally provide a more immersive customer experience.
Although it has existed in some shape or form for more than two decades, the metaverse is finally becoming mainstream. Gartner predicts that in the next four years, one in four people will spend at least an hour a day in the metaverse, performing a range of tasks and activities from shopping and socialising to attending work events and distance learning. With leading tech companies like Meta (previously Facebook, Inc.), Google and Microsoft investing billions of dollars into the technology, there is no denying that it has the potential to revolutionise the way that companies engage and communicate with customers much like social media has over the past two decades.
As our lives moved online during the pandemic, the way we consume digital services like mobile banking or online shopping changed. As consumers, we don’t just compare digital experiences between competitors – but to the last great digital experience that we had; be that on our favourite fashion brand’s app or speaking with a virtual representative from our bank. Customers are demanding new ways to engage and bridging the gap between physical and virtual worlds could, therefore, help firms attract new, digitally native customers, as well as embrace and integrate new products like ‘metaverse mortgages’ and NFTs.
However, FSI providers face challenges when it comes to balancing these digital ambitions with the reality of their complex hybrid IT environments and modernising their decades-old legacy environments.
Balancing agility and governance
Despite a real willingness from banks to accelerate the pace of digital change, this often adds to the proliferation of homegrown and third-party technologies, platforms, systems, and environments. To keep up with the pace of change, banks created DevOps-led product teams with the mandate to ‘go fast and break things. Often, these teams are siloed from the I&O (Infrastructure & Operations) teams who are responsible for ensuring that the infrastructure these new products and services are delivered on is secure, compliant, and safe, but this approach is often not agile enough to meet developer’s needs.
This wall between DevOps and I&O is a barrier to the agility and resilience needed to achieve digital ambitions.
IT now, more than ever, must be service-oriented rather than infrastructure-oriented. I&O teams should modernise their approach to IT service management (ITSM) and become the brokers who enable and govern services across these complex hybrid IT environments. This means bringing together Platform Ops, Cloud Ops, and SRE (Site Reliability Engineers) to form a modern I&O function which supports and collaborates with its Product cousins and provides them with well-governed self-service environments in which they can innovate.
Automation for really complex IT environments
Essentially, to embrace new digital experiences, banks and FS organisations must adopt service-oriented orchestration and think about how they can move towards environment-as-code.
Environment-as-code elevates infrastructure-as-code to connect Product teams with I&O teams, prioritising both developer agility and governance and allowing them to deliver, manage and orchestrate environments, platforms, and services rapidly, reliably, resiliently and at scale. It can be achieved with automation tools that can deliver full lifecycle orchestration for any application, in any environment and at scale and which provide the centralised control plane required for good governance and compliance.
World-class digital experiences are built on these resilient and secure environments, and this approach can also free up developer time to focus on delivering innovative new services and products - such as those in the metaverse. It will be interesting to see how banks, FS firms and insurers move forward with plans to adopt metaverse technology and not get left behind by their competitors.
In fact, it’s been a period full of new concepts: Web 3.0, NFTs, DAOs. Chances are that you don’t go a day without seeing one of them floating across your social feeds. But to be clear, the metaverse and its associated concept - unlike some trends that come and go - are far more than a fad.
There are many definitions around exactly what the metaverse is but in essence, it’s a collection of immersive virtual worlds that users can explore via avatars or headsets. It is how we will explore the new technologies which are driving the next evolution of the internet, Web 3.0. While I grew up scrolling a 2D internet, the next generation is strolling through immersive 3D experiences.
With these new experiences comes new expectations and behaviours. When one-fifth of young people expect to see more brand name clothing for their avatars and new spending patterns emerge with $15.7 billion spent on NFTs in 2021, it is time for brands to start paying attention.
Some of the largest global brands have already made their move, directing time and money to define their place and point of view. Web 3.0 strategy is gaining in importance for businesses who want to build sustainable strategies for the short, mid and long term. The question is - where to start?
Web 3.0 adds a new layer to your omnichannel strategy
For a long time brands have been thinking about how they blend the real world and digital world. The ‘virtual’ world is simply a new layer to think about. We believe the winners will be ‘blended reality brands’ who let consumers experience products and services in each ‘reality’ and move effortlessly between them.
Making customer ecosystems fluid isn't new, but it does become more complex with Web 3.0. The reason being, that many of the existing channels have the potential to become deeper experiences, which in turn have to be created and managed. Prep for Web 3.0 isn’t a part-time job, it’s a department and ultimately, an entire dedicated business function.
While the metaverse is still a highly experimental space, the early adopters’ advantage was very clear to us at R/GA, which is why we’ve invested in launching a bespoke Direct to Avatar (D2A) capability. We foresaw that as the future of retail evolves, and traditional D2C strategies are disrupted by the metaverse, that brands are going to be increasingly looking to explore the creative and business potential of the many emerging virtual spaces.
And many more digital channels will be impacted and disrupted; product strategies should consider virtual product lines; dotcom can be augmented with immersive AR/VR experiences; CRM strategies can extend to NFTs as membership tokens. The opportunities for driving deeper engagement are growing, allowing for new value creation.
With these new experiences comes new expectations and behaviours.
Slow and steady wins the race
But little can be gained by jumping into the metaverse without a roadmap. There may feel a sense of urgency watching the likes of Nike and Adidas jump right in but it doesn’t mean you must immediately follow suit. The clients we speak to are all at different stages - some are at ground-zero learning and strategising, while others are building and testing the next thing on their roadmap.
The springboard to success lies in investing additional time to develop a greater understanding and the impact. Of course, for those that are eager, plans can also be established at speed through education sessions, opportunities mapping, organisational prep and measured pilots.
What’s exciting is that we are still early in this evolutionary cycle despite progress happening at pace. In fact, there are over 180 virtual worlds and I am sure as I write there are more being brought to life.
Community comes first
Despite being at the start of its evolution, the metaverse is going to be powered by numerous communities and subcultures. The key for businesses is to think community-first and focus on providing value for them. Ask yourself the question; Why should they care? How can you add meaning to their virtual experience - and how can real-world experiences complement?
By partnering with the communities your products and experiences are intended for to influence your strategies, it presents an opportunity to drive deeper loyalty across the entire brand ecosystem.
So, the race is on to build the metaverse and brands are sprinting to seize the moment of opportunity. But in the whirlwind of jargon, rebrands and promises, it’s important to remember that the metaverse is a marathon. By taking their time and understanding what makes sense for their products and consumers, businesses will see that they aren’t left behind. Instead, they are the ones able to pioneer lasting, meaningful experiences that make sense and add value.
Cryptocurrency has become somewhat inevitable in our world today. From being a relatively obscure proof of concept announced in 2008, it has become part and parcel of the global financial fabric.
Initially used by individuals to make purchases—such as the 10,000 BTC spent on a pizza—the industry continues to evolve and find use cases in almost every sector of the global economy. This evolution has led to its adoption by multinational corporations, who continue to find interesting uses for these digital assets.
The evolution in the crypto industry has led to the development of Decentralised Finance (DeFi), Non-fungible tokens (NFTs), Game-Fi and more recently, the Metaverse. Consequently, institutional adoption has continued apace.
Global Fintech giants PayPal and MasterCard are looking to integrate crypto payments into their list of products. Electric car company Tesla and Software giant Microstrategy purchased Bitcoin and hold it on their balance sheet, as seen in their recently released Q4 reports. Adidas and Nike have announced NFT collections with their sights on the virtual world, while Microsoft has ventured into the Metaverse through its acquisition of Activision Blizzard.
Conspicuously, the banking industry has also wanted a piece of the action as institutional adoption rallies. Initially, the consensus was that it would be adversely affected by the emergence of crypto. However, both industries seem to be coexisting just fine.
Several banks globally have announced their intentions to integrate crypto services into their offerings. This would allow their customers to easily access the best of both worlds on one platform.
However, the stakes have been raised even higher, as Wall Street banking giants JP Morgan recently announced joining the Metaverse. The move represents the first major bank to venture into this space.
JP Morgan’s Approach To The Metaverse
JP Morgan has opened a lounge in the blockchain-based Decentraland. The US bank believes its Metaverse branch will enable customers to create virtual avatars, establish virtual rooms, and travel in the 'Onyx Lounge’—named after its suite of Ethereum-based services.
The Wall Street behemoth plans to take advantage of prospective growth opportunities in the metaverse through its virtual presence. With the entire world at a critical crossroad, it believes that there isn't a single company or celebrity that is not considering or building an identity on the Metaverse. JP Morgan’s report said,
“The metaverse will likely infiltrate every sector in some way in the coming years, with the market opportunity estimated at over $1 trillion in yearly revenue. As a result, we see companies of all shapes and sizes entering the metaverse in different ways, including household names like Walmart, Nike, Gap, Verizon, Hulu, PWC, Adidas, Atari, and others.”
In its approach to the Metaverse, JP Morgan believes that if the digital world is to succeed, having a robust and flexible financial structure is critical. With this in focus, its strategy will ensure interoperability grows due to its payment and financial architecture. This infrastructure will ensure users can seamlessly interact between the physical and virtual worlds.
However, the bank issued a warning about the difficulty of building a corporate strategy in a dynamic environment as metaverse components evolve quickly. Despite this, it believes the cost and risks of engaging early and regularly to build intellectual property, develop a hypothesis and identify partners are minimal. It further buttressed that the high risk of being left behind justifies the small initial expenditure required to get started and explore this new digital terrain. It said,
“However, the costs and risks of engaging early and consistently in order to build internal intellectual property, develop hypotheses about future business models, and identify ecosystem partners and collaborators are relatively low.”
Opportunities In The Metaverse: What JP Morgan Sees
According to JP Morgan, the opportunities present in the Metaverse are limitless for both individuals and corporate brands alike. These available opportunities within the economy of the Metaverse—Metanomics—cut across virtually every market area with an estimated value of $1 trillion.
The dynamics of supply and demand are expected to push more people into the Metaverse and necessitate the development of new avenues to generate revenue. The creator economy will present enormous opportunities for its participants to develop products consumed in the digital world. Together with marketing and advertising, the service sector also offers another considerable segment within the Meta-economy.
Consequently, it is estimated that by 2027, spending in the virtual world’s advertising market will reach $18.41 billion due to branding and immersive ad experiences. This potential also spreads to the service industry as a recent fortnight virtual concert grossed $20 million, including sales and merchandise. The event was seen by 45 million people as geographical and cost impediments were removed. This provides a glimpse of the potential of the metaverse.
As the augmented technology behind the Metaverse continues to grow, commercial activities will most likely occur. Consumers will purchase goods, and workers will earn money by working in the virtual world. Reports estimate that $54 billion is already spent yearly on virtual goods, with NFTs having a market capitalisation of $41 billion. This number more than doubles the total amount spent purchasing music.
Moreover, the Metaverse evolved from online gaming, especially multiplayer online games, which have developed their economies for a while now. The evolution of these games can give a picture of the potential in this digital world. Roblox, an established online gaming platform for developers to create games for immersive 3D experience, carries 60 billion messages per day. This far outpaces the number of texts handled by leading phone companies and shows that more people are interested in the virtual world.
The growth of the play-to-earn model in the virtual world has made it more appealing by incentivising the process for users. These remunerations earned can then be invested into an in-game asset, bringing about potential income and expenses such as rent, tax maintenance and repairs. This sentiment is backed up by the reported GDP of Second Life, one of the earliest metaverse games that reached $650 million in 2021.
The potential for projects in the Metaverse is enormous. This has led to the social media platform Facebook rebranding to Meta, seeing the company focus its efforts on the immersive virtual experience.
Mark Zuckerberg, Meta’s CEO, reiterated that one company would not build the metaverse. Rather a collective effort of developers and institutions would make the whole experience a reality. In the wake of this announcement, several metaverse tokens on the blockchain, including Decentraland and Sandbox, saw a surge in market capitalisation.
From the chart below, SAND has held the largest slice of the pie among the big players, while MANA and CUBE have taken second and third place respectively. The spike followed the announcement of this development in November last year which pushed the valuation of all three above $17 billion.
Source: JP Morgan Report
With this enormous potential available, banking institutions must get in early and take full advantage of them. A recent survey from Credit Donkey revealed that customers are willing to open new accounts if given a bonus. Through airdrops, we’ve seen a similar trend in the Metaverse. Such an incentive could be just what’s needed for prospective users to jump into the Metaverse and see what it’s all about.
Things are certainly moving fast for Meta, the parent of Facebook – but not in a good way. It very much looks broken. Behind its mega-stock status and flash offices, Meta faces unprecedented threats from its unravelling business model, crashing advertising revenues, product obsolescence, regulatory threats, and from the unknowns of trying to reinvent itself at the centre of where Zuckerberg sees himself dominating next; the “Metaverse”. Whatever that might turn out to be.
Zuckerberg has a massive problem. His existing brands Facebook, Instagram and WhatsApp are under the cosh. They are, essentially, advertising companies under competitive and evolutionary threat. They remain dominant brands in social media advertising, but their user bases are not as sticky as once assumed, and they no longer have a monopoly as social media breaks and fragments into multiple players and themes. They are under enormous regulatory and technical threat.
Things started to get bad last year when Apple gave users of its IOS operating system the option to stop trackers – meaning every keystroke on your iPhone is no longer an invitation for resellers to target and sell you cheap tawdry crap you don’t need or particularly want. Google is doing the same with Android. The result is Meta’s advertising income stream is drying up. It’s not going to get better. Advertisers have more exciting places to go.
Imagine a future where kids can attend any school they want as digital avatars – interesting and horrific in terms of real social interaction, not to mention the health consequences of living online.
The reason the name changed from Facebook to Meta was a tacit acknowledgement of the inevitable – Facebook is no longer the new, new, exciting thing. Meta lost 20% of its value on a single day in January when Zuckerberg broke the cardinal rule of tech and told the truth: admitting Facebook has lost ground to newer, more hip, cool rivals like Tik Tok. If you want to know where it’s headed, look up Friends Reunited. Who knew competition and evolution are real? Tech evolves and old firms get eaten up for lunch by new firms… My kids think Facebook is for grandparents and the truth is It is.
As the platforms close tracking windows, Zuck was forced to admit it’s difficult to make money “where less data is available to deliver personal ads”. In a world where it’s being outcompeted, and regulators are establishing the primacy of personal data… Facebook’s model of milking that data looks doomed.
Of course, these are only the visible tips of a much larger iceberg – regulation. Facebook is the mega-villain when it comes to all the ills of the internet social media connected age. When it comes to the evils of fake news, we need a witch to burn, and the unlikable Zuckerberg is just the kind of scapegoat that will burn nicely.
This is why professional politician Nick Clegg, former deputy prime minister and one-time leader of the UK Liberal Party, is going to replace Zuckerberg as the face of Meta. Clegg will “lead our company on all our policy matters,” said Zuck.
That is either another massive sell signal for the beleaguered stock, or it’s a stroke of political genius. Clegg was never a top tier politician. He was the buggins-turn leader of the 3rd party in a political duopoly. He got famous because David Cameron didn’t win a majority. Suddenly he was catapulted to power in a coalition, bet let himself and his party become the Tories’ stooges to be wiped out at the next election. He was a loser, but a kind, earnest and boring chap who looked like he at least cared. Perhaps that makes him the perfect face to defend the undefendable?
Zuckerberg will find new ways to monetise whatever data Meta can find in its virtual and augmented reality universe – which is not without associated risks to consumers and therefore the company.
Meta’s response to the approaching death of Facebook is to reinvent itself, springing its new concept, the Metaverse, upon us. Zuckerberg has the previous form as something of a congenital acquisitive hoarder of the future – just ask the Winklevoss twins. He clearly wants to own whatever this new “metaverse” is with the intention of monetising it. The question, and future value of Meta, ultimately lies in how well he achieves that.
So, just what is the Metaverse? What kind of opportunity does it represent? Is it, as so many fantabulous things in this wonderful world are, yet another digital solution in search of a problem? Is it hype or a genuine new trend?
The Metaverse concept is not new. It was first described and named by Science Fiction writer Neal Stephenson in the very early days of the internet revolution. Way back in 1992 he presented a vision of human avatars inter-reacting in a 3D digital space. He pretty much nailed it – establishing digital life alongside concepts like “proof of work” leading inevitably to the concept of digital currencies, the genesis of Bitcoin, the Blockchain and even Non-Fungible Tokens.
Today, the Metaverse is being “imagined” as ripe with opportunities; as some kind of Internet version 2.1 – describing how we will all integrate digitally. It will offer a more immersive world of deeper engagement into virtual and augmented reality – once the technology catches up with the promises. “Digital Visionaries” are talking about how natural it will become to do everything from shopping, business and living a social life online in the form of single or multiple digital avatars… It informs the world of “Ready Player One” and raises fears about a “Matrix-like” future.
The thing is – whatever Zuckerberg is telling us – it’s already happening and has been for some time. Meta is not the leader – it's just a follower. The global gaming sector is now infinitely larger than the film industry at over $100 billion per annum. Zuck is trying to paint the Metaverse as a Meta creation where he intends to own as a virtual environment where “you can be present with people in digital spaces”, an “embodied internet”, and how it’s going to “succeed the mobile internet”.
The stock will probably stage a buy-the-dip rally, but like any main-sequence star towards the end of its life, it’s burnt all its hydrogen fuel of imagination, inventiveness and innovation.
It’s an opportunity for him to monetise Facebook’s investment in things like the Oculus VR set and to diversify his earnings from pure (yet risky) advertising to actually selling hard and soft stuff in the Metaverse.
Will he succeed in making Meta the dominant venue in the Metaverse?
Don’t underestimate the potential for monetisation in the Metaverse. Last year 17-year-old artist, Fewocious, sold 600 digital sneakers in NFT format through an online auction for…. $3.08 million. There is now a whole digital fashion universe selling unique NFT apparel gamers can wear online. As yet there isn’t a way of being able to dress across the net (enabling digital avatars to wear the same gear across multiple games and in multiple venues) but I’m assured it’s going to happen. There are now a host of earnest fashion designers exclusively focused on digital fashion.
There clearly are also real and valuable applications for the metaverse in terms of virtual reality business and education. Effectively, education went virtual last year when millions of school kids zoomed an academic year because of COVID. Imagine a future where kids can attend any school they want as digital avatars – interesting and horrific in terms of real social interaction, not to mention the health consequences of living online.
Zuckerberg is a smart fellow who sees potential. He knows Facebook is a risk business – the declining numbers of young people using it isn’t compensated for by the ones using Instagram. The dominant younger generation platform is TikTok, which is now part China Government-owned after it took an ownership stake in Bytedance. As the Facebook brand inevitably fades, its advertising revenues will plummet.
Therefore, he is staking the next stage of his brand’s development on his company’s 3D universe. Zuckerberg will find new ways to monetise whatever data Meta can find in its virtual and augmented reality universe – which is not without associated risks to consumers and therefore the company. And that’s where the jury is out – can he make Meta as much of a monopoly as Facebook once was? If not, and I suspect it’s going to be a very crowded space, then Meta’s future is debatable long-term.
So how does this end for Meta?
What happens next will likely start to happen quickly – fast and broken. Meta is already in trouble for in-house bullying and whistleblowers about its rotten corporate culture. As the stock tumbles and belief wanes, it will suffer key staff defections. The stock price will spike up and down. The firm will miss deliverables, and while trying to fix Facebook, lose focus on Meta. The stock will probably stage a buy-the-dip rally, but like any main-sequence star towards the end of its life, it’s burnt all its hydrogen fuel of imagination, inventiveness and innovation. It won’t go supernova, but as it collapses inwards and atoms fuse into heavier elements, first helium and down the sequence and it will briefly become a red-giant burning brightly in the financial media-sphere for months before it contracts into its white-dwarf long drawn out slow-burnout into nothingness….
Ouch… but not a bad metaphor if I say it myself.
The tech giant’s acquisition of Activision will see it become the world’s third-largest gaming company by revenue after Japan’s Sony and China’s Tencent and is hoped to help provide “the building blocks for the metaverse.”
“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” Satya Nadella, chairman and CEO of Microsoft, commented following the deal. “We’re investing deeply in world-class content, community and the cloud to usher in a new era of gaming that puts players and creators first and makes gaming safe, inclusive and accessible to all.”
Here’s what investors and gamers alike can expect from Microsoft once the deal with Activision Blizzard is complete.
Activision CEO Likely To Stand Down
While it has not yet been officially confirmed that Activision Blizzard’s CEO Bobby Kotick will exit the company following the deal, The Wall Street Journal has reported that, behind the scenes, his resignation has been agreed upon.
Kotick has been credited for the transformation of Activision Blizzard from a bankrupt company to one of the largest video game publishers in the world. However, Kotick came under fire last year after it was reported by The Wall Street Journal that he had been aware of sexual misconduct allegations in the company but had failed to report them to his board. Since, questions about Kotick’s employment at Activision have circulated with some employees and company investors calling for his resignation. As Microsoft looks to build a new future for itself and the game publisher, questions around Kotick’s role as CEO have only intensified.
A Move Toward A Post-Console World
While consoles remain highly popular amongst gamers, Microsoft’s acquisition of Activision will likely bring the community closer to a post-console world. Microsoft claims that its acquisition of Activision will help “democratise” gaming by providing access to popular titles, which are otherwise expensive, through Game Pass — its cloud-based monthly subscription service.
The acquisition “bolsters Microsoft’s Game Pass portfolio with plans to launch Activision Blizzard games into Game Pass, which has reached a new milestone of over 25 million subscribers,” the tech giant says. “With Activision Blizzard’s nearly 400 million monthly active players in 190 countries and three billion-dollar franchises, this acquisition will make Game Pass one of the most compelling and diverse lineups of gaming content in the industry. Upon close, Microsoft will have 30 internal game development studios, along with additional publishing and esports production capabilities.”
Interestingly, most of Microsoft’s stock price gains have stemmed from investor enthusiasm for its cloud services division. In 2020, the global cloud gaming market was valued at approximately $432 million and, by 2026, it is expected to reach a value of around $3,256.7 million. As a top market player, Microsoft will likely see huge profits from this shift in gaming in the years ahead. The acquisition of Activision will only make it easier for Microsoft to achieve its goal of making gaming more affordable and more accessible for consumers.
A Boost For Microsoft’s Metaverse Ambitions?
While Microsoft’s acquisition of Activision boosts the potential for cloud-based gaming, Activision’s virtual worlds do not yet comprise a metaverse play as they still largely depend on various platforms, including consoles and mobile platforms, and are not yet fully immersive. However, Microsoft’s technological push in cloud computing and virtual reality could see it become a metaverse play over time.
Last week, Bernstein analyst Mark Moerdler said that "over many years [Microsoft has] built what we would argue is the largest breadth and depth of functionality that will be required to deliver the metaverse platform." Meanwhile, despite Meta having purchased 8 of the 13 firms that currently work in AR and VR, Microsoft CEO Satya Nadella insisted that “there won't be a single centralized metaverse.”
Some experts view Microsoft’s ambitious move to enter the gaming scene alongside one of the leading gaming giants as its first major step to position itself at the forefront of the Metaverse race, ready to compete against big names such as Meta and Apple.
Final Thoughts
The news of the Microsoft-Activision deal was followed by a tidal wave of speculation, though only time will tell what materialises from the largest tech deal in history.
Some employees are now saying they want their bosses to embrace the metaverse to enable more effective hybrid working, a survey suggests.
US technology company Owl Labs recently surveyed 2,000 people in the UK, finding that 52% of participants backed the call for more virtual technologies to be used to support hybrid working.
Just over a third of participants said they believed an “office metaverse” would help reduce bias in favour of those who regularly attend the office. Meanwhile, almost two thirds (65%) of participants said they felt that an “office metaverse” would boost flexibility within their organisation.
“With hybrid work firmly cemented in our work culture, the need for technology that makes the remote working environment more immersive has never been more important,” said Frank Weishaupt, CEO of Owl Labs.
“Through our own experience, we already know how innovative technology can create an environment where everyone feels like they’re in the same room regardless of location. As hybrid work can present potential challenges around presentism and a divide between the in person and remote workforce, immersive technology – like the Meeting Owl, AR and now the metaverse – can be effective tools to boost inclusion and create a more united workforce.”
This week, Republic Realm announced it had spent a record-breaking $4.3 million on digital land through the “virtual world” website The Sandbox, following on from a $2.4 million digital land purchase by crypto company Tokens.com through Decentraland in late November. Such websites are self-labelled as prototypes of the metaverse.
Tech consultant Cathy Hackl says Facebook’s rebrand has “introduced the term “metaverse” to millions of people a lot faster than I would have ever imagined.”
Crypto data site Dapp has reported land worth more than $100 million selling in the past week across the four biggest metaverse sites. These include The Sandbox and Decentraland, as well as CryptoVoxels and Somnium Space.
Hackl says she is unsurprised by the booming market, which is generating huge potential for virtual real estate. Hackl says digital land is already functioning as an asset in the same way that real land does.
In a statement, the company said it was reserving the decision which it made in January 2018 as the crypto landscape continues to “mature and stabilise.” Meta also said that new government regulations had provided clearer rules for the sector.
Crypto companies will now have access to the more than 3 billion people who use Meta’s platforms across the world. These include Facebook, Instagram, and WhatsApp.
Meta also plans to expand the number of regulatory licenses it accepts from 3 to 27, though advertisers still require written permission from the company before moving to promote crypto exchanges, lending and borrowing, crypto wallets, and crypto mining tools.
“These changes will help to make our policy in this space more equitable and transparent and help more advertisers, including small businesses, grow their audiences and reach more potential customers,” Meta said. “Cryptocurrency continues to be an evolving space and we may refine these rules over time as the industry changes.”
The move comes as Meta pushes toward the metaverse, a virtual world in which people can interact via digital avatars. It is hoped that the metaverse will support crypto payments and other blockchain-based technologies.
