Definitions of the metaverse vary, as do predictions of when it will arrive. Because right now, the metaverse – in the global and unified sense it’s supposed to be based on – isn’t a reality.
What is the metaverse?
As is often the case when discussing a manufacturing IT topic, Gartner’s definition pretty much sums up the main characteristics of ongoing “innovation”. For consulting firm analysts, the metaverse is a 3D environment:
- consistent and immersive;
- collective and shared;
- created through augmented digital and physical reality;
- accessible through any connected device (smartphone, PC, VR headset, tablet);
- powered by a blockchain-based currency.
What are the different definitions of metaverse?
So the metaverse can be interpreted as a completely virtual space where people interact through avatars.
But in a broad sense, the metaverse can also be a mixing real and virtual experiencesfor example spectators who attend a real concert from home and who see, hear and interact (through their avatars) with other people who are on the site or who “visit” the metaverse.
In both cases, the metaverse may include the possibility of making transactions in non-fungible tokens (or NFT for “non-fungible tokens”), cryptocurrencies or with any digital currency that relies on a blockchain. . So a metaverse also makes it possible to buy and sell products and services, and to offer a new customer experience (CX) through 3D reconstruction.
For some, this ability to transact is part of the meaning of the metaverse, but not for everyone.
Ultimately, a fully realized metaverse will rely on major advances in three areas:
- the ability to easily transport and develop in another space;
- a faithful 3D representation of a physical world (even if it is conceptualized);
- and the emergence of the Web3 type economy (web replacement and web 2.0).
Do metaverses really exist?
“These three elements have already appeared, but it is only when they come together that we see a true metaverse,” expected Marty Resnick, VP of the Technology Innovation team at Gartner.
For Jeff Wong, chief innovation officer at consultancy EY, the metaverse we hear about today is neither a destination nor a fully realized specific space. Rather, for him it is a collection of emergent digital worlds, a set of small metaverses, some of which are public and some of which are not, each constructed for its own purposes.
Although the arrival of a unified metaverse is not expected for another decade, several companies are leading versions of what the universe could be.
The giants of IT or video games – such as Microsoft, Apple, Amazon, Google, Meta (ex-Facebook), Roblox, Nvidia, Epic or Unity – are already fighting to get their share of the metaverse and know the axes they can. dominant.
But they are not alone. Manufacturers or distributors – such as Nike, Carrefour, Walmart, Heineken or Ferrari – also cross the presented “new frontier”.
In other words: instead of one metaverse, several metaverse-like projects are being developed.
Marty Resnick compared it to the early days of the Internet, when players each had their own services, companies created their own islands on the World Wide Web, and parts were not interoperable. The fact that the concept of the metaverse has no real unified meaning is a sign of its immaturity.
Today’s technology is also not ready to support a fully immersive and shared metaverse. Interoperability, computing power, protocol, networking capability and degree of sophistication do not create a truly unified space with a successful UX.
An ecosystem of interconnected virtual worlds, powered by cloud computing, will require interoperability and a strong partnership between providers. But now the development of the metaverse looks more like competition than cooperation.
Note that metaverses also present many risks (read below). CIOs who attempt the adventure have every interest in engaging their colleagues from cybersecurity and legal.
What are the technologies of a metaverse?
The most important technologies behind a metaverse are:
3D modeling. More and more companies are working on building 3D environments and virtual objects. Others are already using digital twins for a variety of tasks, from improving supply chain management to predictive maintenance of complex industrial machinery.
Augmented reality (AR) and virtual reality (VR). Both provide a metaverse that is an immersive experience, although AR and VR alone are not a metaverse.
NFT, blockchain and cryptocurrencies. Blockchain is a decentralized technology that makes it possible to dispatch trusted third parties to buy, sell or verify the exchange of an asset. NFTs are based on this blockchain technology. This is a virtual title title for things, usually also virtual. They allow, for example, to certify the identity of the owner of a digital work of art (in JPG or GIF format), of the master of a song (in MP3 or FLAC), and even of a tweet that should have been sold. (like when the Twitter founder sold his very first tweet for $2.9 million).
Artificial intelligence. AI will be used in many ways for the creation of metaverses, including managing non-human characters and to facilitate realistic experiences in digital reality.
The Internet of Things. IoT is already used to connect and share data from a wide range of objects in the physical world. In the metaverse concept, IoT is essential to connect physical places and real objects in 3D simulation, especially for real-time simulations.
What are the use cases and B2B opportunities for metaverses?
The concept of immersive reality, characteristic of the metaverse, also presents different and very different use cases. Some applications, for example, are aimed at employees (immersive hybrid work), while others will target customers. Others help with training and collaborative processes. Others will target income generation.
Because the metaverse is also a way to create, sell and experiment with content and applications. However, the potential seems to be there. “Every year, 54 billion dollars [déjà] spent on virtual goods, almost double the amount of music purchases”, estimated the report from the financial holding company JPMorgan ” Opportunities in the Metaverse: How to explore businesses in the metaverse and navigate the hype vs. reality “.
JPMorgan started positioning itself in the metaverse in February by opening its Onyx lounge in Decentraland – one of the first virtual reality platforms where users can buy virtual land with NFTs (backed by Ethereum). In January 2022, Carrefour bought a piece of land in Decentraland (for €300,000).
As Gartner’s Marty Resnick reminds us, most companies have two presences: one in the real world (stores, offices, etc.) and one online. According to him, “the best possible recommendation for CIOs today is this: prepare to add a third site [le métavers] on your physical sites and on your websites”.
This – still relative – intensification of activity in metaverses groups shows that at least some companies attach importance to them.
Here are some use cases of a metaverse that CIOs may consider in the near future:
- immersive entertainment
- commercial operations (virtual stores, etc.)
- training development
- improved CX
- additional staff
- advertising, branding and marketing (by analyzing metaverse customer data)
- digital locations
- new sources of income (selling virtual goods, etc.)
- immersive hybrid work
What are the risks and limitations of metaverses?
There is no innovation without risk. Metaverses are no exception. Here is a short list of pitfalls to be aware of to avoid them:
- environmental concerns;
- cybersecurity issues;
- legal issues;
- harassment in all forms;
- confidentiality issues;
- scams;
- disinformation;
- mental health effects (decreased self-esteem; increased feelings of isolation).
Likewise, the metaverse creates new considerations in compliance issues, data privacy, risks and security requirements.
At the same time, concerns about environmental sustainability are growing. A metaverse would be computationally intensive to create a large 3D space. And if it is based on a blockchain, some are more energy intensive. These or these new spaces can have a significant carbon impact.