As explained by Deloitte, “the metaverse is the popular term used to describe what many expect to be the next significant paradigm for how we use digital technologies and networks to interact and collaborate with others and have virtual experiences of all kinds. It’s not a single technology or device, and it’s not a service of any one company. It’s the convergence of several separate technologies, all of which are quickly maturing for mainstream use. Together, those technologies can create the experience of an immersive, three-dimensional environment in which users interact with their surroundings and other users as if they are in a shared space”.
The promise of integrated, interoperable and open economies online will continue to drive consumer interest and activity. And once a critical mass is reached, the branding and sales opportunities in the metaverse are only going to add to that momentum.
As the metaverse grows over time, this can be a critical growth opportunity. The communications industry needs to look at these disruptive times to provide the right services within the home. Expect to see new operational capabilities, private enterprise networks, and the deployment of edge resources for low latency to ensure a consistent experience.
Major investment banks, such as Goldman Sachs, Morgan Stanley and Citigroup, are all predicting the metaverse will represent US$8 trillion to US$12 trillion in value over the next three to 10 years. Morgan Stanley has even issued a note saying the metaverse could be worth US$8 trillion in China alone.
Games and virtual worlds, like Sandbox, Decentraland and Axie Infinity are all attracting new unique users. According to DappRadar’s latest data, blockchain-based gaming is growing at a rate of 2,000% a year, with over 1.23 million wallets interacting daily with blockchain games in April, an all-time high.
Blockchain games are so popular because people like the idea of the decentralized web. They get more control over their identity and their interactions in games and worlds that are both immersive and collaborative, often allowing users to build their own elements or contribute to their design. Add in an element of play time can also be earning time and the proposition for players becomes even more compelling.
As mentioned by Medium “Brands like Walmart, Adidas, Nike, etc. are planning to set up their virtual stores and some are even purchasing virtual land, which also gives rise to the commercial realty sector on the metaverse. The metaverse real estate market is expected to grow with a CAGR of 31% from 2022 to 2028. Last year, the sale of real estate on 4 major metaverse platforms exceeded $500 Mn, and its figure is expected to almost double this year. Apart from gaming, retail and real estate, Metaverse allows immersive experiences for users across many other industry segments, including education, music, aerospace, etc. While they are still in early stage, such segments have the capacity to grow big in the future”.
Already, web3 technologies are opening new avenues for content creation. Despite digital experiences having long existed on traditional web2 platforms, blockchain technologies allow creators to monetize their talent independent of centralized hosting platforms, while NFTs, or non-fungible tokens, allow for authenticity and provable ownership.
Creators are establishing their own business models, transforming marketing paradigms and tapping into new audiences globally. And their industry is only getting bigger.