Thinking of jumping into the metaverse with your business? According to Thibault Launay, co-founder and CEO of Exclusible, we must first distinguish reality from enthusiasm.
What is the metaverse? Its meaning can be very different depending on the person. For the older generation, even a call via Zoom can be considered “metaverse”.
The most common answer to this question evokes a kind of wonderland of virtual reality, and which constitutes the next great revolution. This is the new dream in which Meta/Facebook spent 10 billion dollars to restore its image and conceptualize its own metaverse. However, companies clearly do not understand this new digital space, even in its definition.
After studying more than 100 different metaverses that are currently on the market, I limited myself to four concrete misconceptions that newcomers should know about these virtual worlds.
Like many new frontiers, the infrastructure of the metaverse is still under construction. The virtual world is a work in progress. It is only accessible to early adopters, core technology professionals and gamers.
Even the hardware required for a smooth experience is restricted by barriers to access, including the requirement for high-end graphics cards and computer processors. All of this remains constrained by a disrupted global supply chain.
The first ever fashion week in the metaverse started off with a bang, but not without its flaws. In particular, some users report that the experience is “very slow, confusing, or doesn’t work at all.”
The average individual is not necessarily equipped with a gaming computer or even the minimum bandwidth required to run these virtual worlds. Therefore, most people find themselves limited in their ability to actually take advantage of the metaverse as it currently exists.
Now let’s take a look at some other major changes that have taken place on the Internet. It wasn’t until smartphone ownership surpassed traditional cellphones that social media use truly took off. It also wouldn’t be possible without built-in cameras that rival digital cameras, or without the expansion of mobile data networks.
Of course, the metaverse is here and evolving every day. But it just hasn’t touched the mainstream in a meaningful way.
Misconception #2: All companies lose by not participating in the metaverse
As an introduction, there is no doubt that companies can lose their space in the metaverse if they do not act quickly. However, the extent to which sectors should participate in this universe and start touting their products on billboards in the virtual world is limited.
These sectors, at least for now, include the technology, gaming, entertainment industry, and crypto domains. Remember, it’s more than just demographics that have access to most of these metaverses.
The companies that contact us and want to sell their products on metaverse are very different, from fashion houses to insurance companies. We cannot guarantee that active users of virtual worlds will find favorable prices for their car insurance. However, industries such as fashion find themselves better suited to this space, as avatars need clothes and accessories to express themselves.
As the metaverse evolves, new use cases will pave the way for others. However, for now, you can safely count on “fun” industries like sports, art and fashion, or real estate to dominate the space.
Companies reluctant to join the metaverse may be open but skeptical. There is no need to join the virtual world until there is a clear path to follow, with tangible goals that can achieve business goals.
Myth #3: the virtual world is a 4D video game
For starters, there are currently hundreds of metaverses, each appealing to different people. Many virtual worlds today have game elements. However, this does not mean that metaverses are created with players in mind.
For example, The Sandbox has more traditional game mechanics in a pixel art style. This is clearly aimed at people who are familiar with video games. On the other hand, Spatial is more graphically advanced and aesthetically focused. It is perfect for digital art galleries and other events that require high quality graphics.
For more game-focused metaverses, their main difference from traditional video games is ownership. In a video game with its own currency, everything you buy and own is related to the game. And for online games, if the developer decides to shut down the servers, the in-game items you have will be lost.
This is contrary to the idea of true digital ownership. Digital assets are meant to be stored forever, as they are recorded on the blockchain, which is part of the core Web3 ethos. This is another real issue for the metaverse and can pose problems for companies trying to sell a product.
Myth #4: The Metaverse Aims to Change Reality and Destroy Our Future
As with any new technology that emerges in the cultural zeitgeist, there is a lot to be said for the media’s alarmist attitude about the metaverse’s impact on our children’s future. The received idea is that they allow themselves to be absorbed in digital worlds to the detriment of their real life and withdraw from the world around them.
That’s not to say that excessive Internet use isn’t a problem. Young people are more depressed than ever and screen time only makes the problem worse. However, the media may be on the wrong target.
Generation Z lived its formative years against the backdrop of extreme historical events. These include weather events caused by climate change, the recovery of human rights, international wars, widening income inequality, the housing crisis and a series of pandemics. Is it any wonder that escaping the Internet helps them keep going?
Ultimately, the metaverse presents itself not as a new iteration, but as an upgrade to the current internet. This is very similar to social networks and other parts of the Internet that allow everyone to express themselves. Joining the metaverse is simply an extension of our reality.
As a recent VRchat documentary shows, there are already use cases for the metaverse to improve the lives of its users. Even in its oldest form, the basis of the virtual world is to provide a new way for people to connect with each other.
Right now, it’s going to be like the Wild West. It’s up to developers and users to make sure we shape our ideal metaverse with rules and culture that protect and uplift its users and future generations.
Review your approach to the metaverse
Web3 startups continue to build on existing metaverse experiences. There is no doubt that progressive and traditional companies want to take advantage of this new initiative and start to start by joining the virtual world.
However, to fully exploit its potential, companies need to re-evaluate their strategy and question their reasons for joining the metaverse. Are you looking to meet users where they are and improve their virtual experience, or are you joining this project just for the thrill of it?
About the Author
Thibault Launay is the co-founder and CEO of Exclusible, the industry benchmark platform for metaverse and NFT activities. A serial entrepreneur and an angel investor in various industries, he is a member of the NFT Blackpool hedge fund, an advisor to OVR.ai, and a noted collector of NFTs and physical vintage watches.
Thibault is a former student of Paris Dauphine University, Harvard Business School and the Forbes 30 Under 30 association.
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