The #metaverse has been a topic of much excitement and speculation in recent years. But what exactly is it, and why is it generating so much buzz? In this post, we’ll explore the definition and key innovations behind metaverse, why it’s causing such a stir, and what actions business and technology leaders should take to prepare for this next level of interaction between the virtual and physical worlds.
The digital world is constantly evolving, and the latest trend is the emergence of the metaverse. But what exactly is a metaverse? To put it simply, a metaverse is a collective virtual shared space created by the convergence of physical and digital realities.
It is the next iteration of the internet, a shared space that has grown from individual bulletin boards and online destinations to what we have today. The metaverse is not device-dependent and is not owned by a single vendor; it is an independent virtual economy enabled by digital currencies and non-fungible tokens (NFTs).
The concept of the metaverse is a result of a combination of four key innovations: Web3, spatial computing, digital twin of a person (DToP), and digital twin of a customer (DToC). Web3 refers to a new stack of technologies for the development of decentralized web applications that empower users to control their own identity and data. What is the Metaverse?
A metaverse is a shared virtual space where users can interact with each other and digital objects in a near-real-time, persistent, and decentralized manner.
It’s not device-dependent, nor owned by a single vendor. Instead, it is an independent virtual economy, enabled by digital currencies and NFTs.
The metaverse is not a single entity, but rather a collection of emerging technologies that promise the next level of interaction in the virtual and physical worlds.
Key Innovations Driving the Metaverse?
Web3: A new stack of technologies for the development of decentralized web applications that empower users to control their own identity and data.
Spatial Computing: A three-tiered technology stack that enables the intersection of the physical and digital worlds.
Digital Twin of a Person (DToP): A near-real-time, synchronized multipresence that not only mirrors a unique individual but also has the ability to be present in multiple places at the same time.
Digital Twin of a Customer (DToC): A dynamic virtual representation of a customer that simulates and learns to emulate and anticipate behavior.
There is a lot of buzz around the metaverse, with many companies claiming to be metaverse companies or creating a metaverse to enhance or augment digital and physical realities. The metaverse will provide persistent, decentralized, collaborative, and interoperable opportunities and business models that will allow organizations to extend digital business.
Opportunities are already emerging in areas such as finance, automotive, gaming, customer service, and virtual workspaces. For example, J.P. Morgan has become the first bank to establish a presence in the metaverse, predicting a market opportunity of $1 trillion, and eyeing virtual real estate.
Automobile dealerships could keep limited stock of vehicles and use AR cloud to showcase more options by digitally changing interior and exterior attributes in real-time. Games can be created to train employees without exposing them to hazards, and DToCs and digital humans can interact with customers to aid in areas like financial transactions or patient health monitoring.
Virtual workspaces can foster better engagement, collaboration, and connection opportunities for employees, as virtual meetings powered by metaverse technologies are becoming more common in hybrid work.
Why the Hype Around Metaverse?
Excitement around metaverse is being driven by technology companies claiming to be metaverse companies or creating a metaverse to enhance or augment the digital and physical realities of people.
Metaverse will provide persistent, decentralized, collaborative, and interoperable opportunities and business models that will enable organizations to extend digital business.
Metaverse opportunities are already emerging for enterprises and individuals alike.
J.P. Morgan has become the first bank to establish a presence in the metaverse, predicting a market opportunity of $1 trillion and eyeing virtual real estate.
Automobile dealerships could use spatial computing to showcase more options to customers by digitally changing the attributes of vehicles in real-time.
Games can be created to train employees on how to handle hazards without exposing them to those hazards.
DToCs and digital humans can interact with customers to assist in areas such as financial transactions, shopping experiences, or health monitoring.
Virtual workspaces can enable better engagement, collaboration, and connection opportunities for employees.
Actions for Business and Technology Leaders “The next one to three years will be a time of learning, exploring and preparing for a metaverse with limited implementations,” says Resnick. “The financial and reputational risks of early investments aren’t fully known, and we advise caution.”
To get started with metaverse, business and technology leaders can follow these steps.
Explore opportunities where metaverse technologies could optimize digital business or create new products and services.
Build metaverse products and solutions through a pipeline of combinatorial innovation, instead of trying to find a “killer app.”
Identify metaverse-inspired opportunities by evaluating current high-value use cases.