In November, Mark Zuckerberg announced that Facebook was renaming itself Meta, emphasizing that his company woulddeveloping your own metaverse.But Facebook is far from the only company betting on virtual worlds. In addition to tech giants such as Microsoft, Google, Samsung, Sony, Epic Games and Roblox, Adidas, Nike, Gucci, Balenciaga, Hyundai and Dyson are experimenting with metaverses and NFTs.
At the same time, a list of brands that are far from the crypto world,which launch representations in metaverses are constantly growing. We figured out why large companies are entering this new sector, how the new metaverse market will develop, and what role cryptocurrencies will play in all this.
What is the metaverse?
The Metaverse is a virtual world in which users can interact with each other, own digital property, work and have fun.
For the first time the term "metaverse" appeared in 1992year in Neil Stevenson's science fiction novel Snow Catastrophe. There, people interact with each other and with artificial intelligence in a virtual 3D space. The ideas of a single virtual space for all have been discussed since the 1970s.
You can get into the metaverse usingpersonal computer and browser, as well as virtual reality (VR) and augmented reality (AR) devices: virtual reality headsets, augmented reality glasses and smartphone applications. Users can create their own digital avatars and develop them, such as buying them new clothes or changing their appearance. Metaverses are considered the next stage in the development of the Internet.
The role of NFTs and cryptocurrencies in the development of metaverses
Metaverses are a potentially huge marketfor cryptocurrencies and NFTs. Each virtual world will have its own economy, and cryptocurrencies are much better suited for this than fiat money. After all, metaverses will need financial instruments that will allow users from different countries to interact with each other.
In particular, they will play a special role in metaversesNFTs are non-fungible tokens. They allow users of virtual worlds to truly own their avatars, digital items and real estate, and provide content creators with a convenient tool for monetizing their creations.
This point of view is shared by the Bank ofAmerica Chaim Israel. In comments to Insider, he noted that metaverses are a huge opportunity for adapting blockchain technology and crypto assets. It is this new market that will lead cryptocurrencies to mass adoption, and they will finally be used as a currency. However, the analyst expects that existing digital currencies may prove too volatile for the metaverse, and they will likely be dominated by stablecoins.
How is the metaverse sector evolving?
Many elements of metaverses already existseveral decades in game projects at studios such as Epic Games, Roblox and Linden Lab. For example, the game Second Life, launched in 2003, has its own virtual world with its own economy and in-game currency, and users develop their characters and live an entire virtual life with them. However, interest in metaverses has grown sharply this year - after Facebook's recent rebranding as Meta. We previously took a closer look at what the Meta metaverse will be like.
In short, Mark Zuckerberg's companyhas been developing VR and AR technologies for about seven years and investing billions of dollars in this area. In the next 5-10 years, Meta hopes to make these technologies available to the masses and change the way people now work, learn, communicate and have fun. Together with Meta, all these processes will be available in the future virtual space. In the metaverse, people will be able to hold work meetings, party with friends, go on dates, attend concerts, watch movies and shop.
Meta is not the only large company thatsees the potential of metaverses. Google, Apple, Samsung, Sony, PlayStation, Alibaba, Qualcomm, Valve, Magic Leap, Matterport, Immersion, Unity, TikTok and Snapchat are working on similar projects and VR and AR technologies.
There are also several largeprojects that are focused on launching their own decentralized metaverses. Previously, we have already talked in detail about projects such as Decentraland, The Sandbox and Alien Worlds - users of these worlds on the blockchain can buy digital real estate and in-game assets in the form of NFTs.
Let's look at a few examples of how IT companies are developing metaverses.
Roblox.Roblox is a platform where userscan both create their own games and play games created by other users. In-game purchases are popular in Roblox games, and all transactions take place in the in-game Robux currency.
The project was launched in 2006 - and now226 million people play (last year - 150 million). Interestingly, in the US, almost half of all children under the age of 16 play Roblox. This summer, the company announced plans to create a metaverse.
Epic Games.Fortnite is the company's most popular game,launched in 2017, is in fact already a metaverse. In it, users can not only fight monsters, but also throw parties, and also dress up avatars in different clothes - the so-called skins. Fortnite has even hosted virtual concerts from the likes of pop star Ariana Grande and rapper Travis Scott.
In April of this year, the company raised $1 billion fordevelopment of the metaverse. The money will be used to develop the Fortnite ecosystem and develop VR and AR projects. At the same time, the head of the company, Tim Sweeney, said in 2020 that the key task facing the sector is the development of a single standard for the metaverse, in which disparate products will be combined into one ecosystem. Such a virtual space, in his opinion, can eventually replace the traditional Internet Web 2.0.
Nvidia.Californian graphics developerprocessors and microchips is developing Omniverse, a virtual space for collaboration and 3D modeling. For example, Omniverse users can create a digital replica of a real location to host events there.
In November, the company introduced the Omniverse platformAvatar, which allows you to create virtual avatars with artificial intelligence and a facial and speech recognition system. Such avatars can interact with users, for example, taking orders at self-service checkouts or acting as a consultant when choosing a product.
Microsoft.In November, the tech giant added to its serviceTeams video conferencing technology Microsoft Mesh. In it, users using a HoloLens 2 VR headset, PC or smartphone can enter a virtual workspace as their avatar.
Microsoft named the project"The gateway to the metaverse is a sustainable digital world inhabited by digital twins of people, places and things". Note that Microsoft is developing a corporate metaverse.
Sensorium.Sensorium, a Russian-owned companybillionaire Mikhail Prokhorov, is developing the Sensorium Galaxy entertainment metaverse project. It will host virtual concerts, film screenings, exhibitions, master classes, parties, meditations and other leisure activities.
The project is being developed in partnership with Epic Games.Concerts by David Guetta, Carl Cox and Armin van Buuren are scheduled to take place at Sensorium in the near future. All transactions in Sensorium are paid with the native SENSO token.
Why are big companies interested in metauniverses?
Companies far from the IT industry are increasinglyexperimenting with metauniverses and NFTs. For them, this is additional advertising on the trend, an attempt not to miss a promising niche, as well as the search for a new form of monetization. Consider a few recent examples of large companies collaborating with the metaverse.
Adidas.On December 2, the company announced cooperation withNFT projects Bored Ape Yacht Club (BAYC), GMoney and PunksComic will all be collaborating within the same metaverse. It is not yet clear what exactly this cooperation will be like. It may be linked to the Confirmed app, through which you can purchase Adidas products.
Adidas also bought one from Bored Ape - #8774 -for 46 ETH, or $156,000 on the day of purchase. The NFT monkey was named Indigo Hertz, and his image in an Adidas jacket appeared on the company’s Twitter avatar. The wallet where the token is stored contains another 13 different NFTs from 11 unique collections, including the PunksComic token.
Today we leap Into The Metaverse with @BoredApeYC, @gmoneyNFT & @punkscomic.
It's time to enter a world of limitless possibilities.https: //t.co/LmgtrRn20c pic.twitter.com/40kU8tayrS
- adidas Originals (@adidasoriginals) December 2, 2021
“Today we are jumping into the metaverse with Bored Ape Yacht Club, GMoney and PunksComic. It's time to enter the world of endless possibilities "- said in a tweet from Adidas, accompanied by an animated video in which three branded monkeys fly to Earth from space and land on the site with the Adidas logo
Adidas' interest in the NFT market was first reportedknown in November of this year - the company released a collectible NFT, entered into a partnership with Coinbase and bought a virtual plot of land in the game The Sandbox - it is not yet clear what it will be used for.
However, the partnerships are already known to be part of the company's digital apparel strategy for the metaverse:
"The Metaverse is one of the most exciting digital advancements right now - making it an exciting platform for Adidas.", the company recently said.
Nike.In early November, the company submitted applications forregistration of the trademark “virtual goods” and patents for them. Virtual goods are “computer programs depicting shoes, clothing, and hats for use on the Internet and in virtual worlds.”
November 18th the company announced the creation of a virtualNikeland spaces in Roblox. Nikeland will consist of stadiums, fields and arenas where players can compete in dozens of virtual games such as taggers and bouncers.
Nikeland users will also be able to dress their characters in a variety of company-branded clothing purchased from the virtual store at Roblox.
Nike also released an NFT version of its iconic Air Jordan IX Cool Gray for Fortnite in December as part of its partnership with gaming company Epic Games.
Balenciaga.In late November, fashion house Balenciaga and Epic Games announced a collaboration to bring couturier clothing to Fortnite.
Gucci.In May, another fashion house launched the “Garden” locationGucci" in the Roblox metaverse. Then users could get acquainted with the history of the company, as well as buy or receive free digital clothing and accessories from the company. And in December 2020, Gucci, together with Roblox, created virtual copies of its famous items - players could choose them for their avatars.
Hyundai.In October, the car manufacturer launchedRoblox Hyundai Mobility Adventure is a collaborative virtual space where user avatars can explore Hyundai's offerings and interact with each other. Users can test new Hyundai vehicles and transportation solutions, as well as participate in several public events.
Tencent.In November, the Chinese tech giant revealed thatintends to develop metaverses in China, relying on video games and social networks. Company representatives are not afraid that the authorities will ban the sector in the country, just as they did with mining, but they are confident that it will be subject to stricter regulation than in the rest of the world. Tencent is one of the largest video game companies, its portfolio includes stakes in such large game studios as Epic Games and Activision Blizzard, and the WeChat social network. The company has registered more than two dozen metaverse-related trademarks this year.
Dyson.In November, the British household appliance manufacturertech has launched the Dyson Demo VR virtual environment, which allows users to test their products in virtual reality using a VR headset. Users can use the devices to test hair dryers, stylers and hair straighteners at home. Soon the service will add support for other company products, the ability to invite a virtual consultant or make a purchase.
It is worth noting that brands are experimenting withdecentralized metaverses. For example, the auction house Sotheby’s opened a virtual gallery in Decentraland, and the gaming giant Atari opened a quarter of virtual casinos and playgrounds. And at The Sandbox, investment firm Republic Realm will open its own trading area for purchasing virtual items. Coca-Cola held an auction of its NFTs, which included a collectible branded jacket for the Decentraland metaverse.
At the same time, the volume of transactions with virtualreal estate is growing. At the end of November, the Canadian investment company Tokens.com bought 116 plots in Decentraland for a total of $2.4 million. On The Sandbox, plots worth over $70 million were sold over the past week, with the largest transaction costing $458,000.
Metaverse perspectives
The development of metaverses may change the way weNow we work, have fun and study. This is probably the future of the Internet and virtual space. But for now, this is still at least 5–10 years away—full-fledged metaverses will require revolutionary breakthroughs in VR and AR technologies and artificial intelligence.
The pace of development of metaverses will largely bedepend on investment in a new sector - and tens of billions of dollars are needed here. Meta will invest $10 billion in the construction of the metaverse in the coming years. But in the future, even more investments will be required. At the same time, there will not be any noticeable profit at first, so it will be even more difficult for smaller companies.
For example, Roblox, launched in 2006, is stillstill does not bring stable profits. The company is worth $41 billion, in 2020 annual revenue was $920 million, but the net loss exceeded $253 million. If metaverse platforms want to make money, they need to increase the volume and size of in-game transactions, including by attracting more people to their virtual worlds. But we need to enter the market now, otherwise the first movers will get too many advantages.
There is a lot to compete for in the metaverse market.According to a forecast by Bloomberg Intelligence, the metaverse sector could reach $800 billion by 2024, and by 2030 it could increase to $2.5 trillion. According to investment company Grayscale, the sector will reach $1 trillion in annual revenue in the coming years.
This forecast is supported by the fact thatat the beginning of 2020, the number of accounts in Decentraland increased 10 times. So far there are only 50,000 of them, but if the growth rate continues, then soon metaverses will begin to provide real competition to the current Web 2.0 Internet. Looking at these numbers, it becomes clear why large companies see metaverses as the future of the Internet and are actively investing in them. At the same time, not only tech companies are entering the sector, but also clothing manufacturers and media giants - they understand that selling NFTs can become an important source of income.
Metaverses are not just about commerce andentertainment. These technologies can also change the way we interact with municipalities and government agencies. Thus, South Korean Seoul invested $3.16 billion in the “Seoul Vision 2030” project, which involves the use of VR technologies to communicate with city officials, provide services and hold public events. Also, augmented reality technologies can be used to control production and construction, and medical examination.
Where is it more profitable to buy cryptocurrency? TOP-5 exchanges
For a safe and convenient purchase of cryptocurrencies with a minimum commission, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support deposits and withdrawals of funds inrubles, hryvnias, dollars and euros.
The reliability of the site is primarily determinedtrading volume and number of users. By all key metrics, the largest cryptocurrency exchange in the world is Binance. Binance is also the most popular crypto exchange in Russia and the CIS, since it has the largest cash turnover and supports transfers in rubles from bank cardsVisa / MasterCardand payment systemsQIWI, Advcash, Payeer.
Especially for beginners, we have prepared a detailed guide: How to buy bitcoin on a crypto exchange for rubles?
Rating of cryptocurrency exchanges:
| # | Exchange: | Website: | Rating: |
|---|---|---|---|
| 1 | Binance (Editor's Choice) | https://binance.com | 9.7 |
| 2 | Huobi | https://huobi.com | 7.4 |
| 3 | Exmo | https://exmo.me | 6.9 |
| 4 | OKEx | https://okex.com | 6.5 |
| 5 | Bybit | https://bybit.com | 6.3 |
The criteria by which the rating is set in our rating of crypto-exchanges:
- Work reliability— stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
- Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
- Additional features and services— futures, options, staking, NFT marketplace.
- Feedback and support– we analyze user reviews and the quality of technical support.
- Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
- final grade– the average number of points for all indicators determines the place in the ranking.
Finally
The development and launch of metaverses should givea major boost to cryptocurrencies and NFTs. The news of Facebook's rebranding into Meta has already become a driver of token growth for projects such as Decentraland, Axie Infinity and The Sandbox.
There is every chance that cryptocurrencies will become the backbone of an important part of the metaverse economy.
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