The Metaverse Vision

The Metaverse is the vision of a sensory and immersive internet that will connect social media, games and 3D graphics. Instead of browsing the internet, the Metaverse will give us the sensation of being fully immersed within virtual realms.

From Vision to Reality

The vision of the Metaverse is not new. Parallel virtual worlds have been described by technologists, philosophers and science fiction authors for many decades.

The term “Metaverse” originates from the science fiction novel Snow Crash, written by Neal Stephenson in 1992. In the novel, the Metaverse acts as an escape from a dystopian USA where people sought refuge in a virtual reality consisting of avatars (3D models of people) using VR headsets.

However, the current ambition for the Metaverse is not to replace the physical world, but rather to bring the virtual and physical worlds closer together. Many companies are currently competing to build the virtual universe of the future.

Hype and Reality

The Metaverse gained new relevance in October 2021 when Mark Zuckerberg announced that Facebook would change its name to Meta.¹ Meta’s vision is for the Metaverse to become the next generation of the internet. The goal is to create new and more virtual ways to connect people and services. Despite facing financial challenges, Meta intends to invest USD 10 billion in the Metaverse each year going forward.²

Other companies, such as Microsoft, Apple, Google, Amazon and Sony are also investing significant amounts in technology that could make the Metaverse possible. McKinsey estimates that the Metaverse will be worth $5 trillion by 2030.³

Several companies could become key players in the development of the Metaverse. Two examples include Epic Games, which developed the popular online game Fortnite and the graphics card manufacturer Nvidia. Asian companies are also investing in the Metaverse. In 2021, the Chinese company Tencent launched its own version of the Metaverse – “Hyper Digital Reality”. South Korea has created “the South Korean Metaverse Alliance”, which consists of no fewer than 450 technology companies.⁴

Visions of the Future

Tech companies have vested interests in describing the Metaverse in line with their own perception of the future and the products they develop and produce.⁵ The vision for the Metaverse therefore varies depending on who you ask. Nevertheless, some aspects recur in most visions of the future: the Metaverse will connect gaming and social interaction and remove physical limitations.

The Metaverse is often associated with gaming. Today, multiple players can play online games simultaneously and collaborate to solve various tasks in virtual universes. Either in the form of a look-alike avatar, or as a game character of their choosing. However, the vision for the Metaverse includes more than just interactive virtual gaming experiences.

There are many examples of what could become possible in the Metaverse: Going to the cinema, attending lectures and conferences, viewing real estate, exercising, meditation and social interactions. In the healthcare sector, for example, it could become possible to plan and simulate surgical interventions and to offer virtual treatments such as physiotherapy and mental health services.

The vision also entails removing physical limitations. Instead of scrolling through social media on your smartphone, the content could appear in your surroundings. It may even become almost pointless to draw a categorical distinction between the physical and the virtual world.⁶

The Metaverse is also a vision of a 3D version of the internet, allowing for immersive and virtual experiences. Perhaps we will perceive it as a further development or evolution of the current internet. We may not even refer to it as the “Metaverse” if and when the technology is commercialised and adopted.

In summary, we can say that the vision for the Metaverse is not tied to a specific idea, technology or company. Nevertheless, the Metaverse representants a new way for people to use (and take part in) digital services and platforms.⁷

What is the Metaverse?

There are many different definitions of what the Metaverse is and what it will become. Nevertheless, there are some specific characteristics that distinguish the Metaverse from today’s internet and existing virtual worlds.

Matthew Ball, author of the book “The Metaverse and How it Will Revolutionize Everything”, defines the Metaverse as follows:

“A massively scaled and interoperable network of real-time rendered 3D virtual worlds that can be experienced synchronously and persistently by an effectively unlimited number of users with an individual sense of presence, and with continuity of data, such as identity, history, entitlements, objects, communications, and payments.”⁸

Three distinct features can be used to describe the Metaverse:⁹

Presence: The Metaverse is set to invoke a sense of actual physical presence in fully fledged virtual worlds. It will consist of different (and perhaps numerous) virtual environments, both fantasy universes and also so-called mirror worlds – worlds that are similar to our own. A sense of presence will be achieved by connecting our senses online. Being able to see, hear, perceive movements and touch and feel (virtual) objects are therefore some of the key features of the Metaverse. Presence can be experienced through VR headsets and haptic devices, such as gloves with touch sensors, but this is not necessarily a prerequisite (see subchapter “Presence”).
Coherence: Current virtual platforms and existing online games are largely closed universes. However, the virtual worlds of the Metaverse will be interconnected. Your digital representation, whether an avatar or a hologram, should be able to move seamlessly between different universes and services. It should also be possible to transfer 3D objects and models between different services, using data portability. Ideally, the universes would be interlinked through a virtual economy.
Simultaneity: The Metaverse will connect people and must have sufficient capacity for an unlimited number of people to use the Metaverse continuously and simultaneously. Bandwidth, latency and computing power will be key in achieving this. No virtual universes currently have the computing power or network capacity to facilitate such usage.

The Metaverse Today

Today, virtual worlds are often referred to as the “Metaverse” although they do not meet all the characteristics described in the previous chapter. Current virtual worlds are largely closed universes and not interconnected. Existing virtual worlds may be perceived as more or less immersive through VR headsets, but most of these platforms can also be accessed through web pages and apps. These virtual worlds have limited capacity, and both user-friendliness and popularity vary. Nevertheless, they can be viewed as prototypes or beta versions of the Metaverse, and they provide us with some insights as to what the Metaverse could look like in the future.

Game-based Worlds

Currently, the most popular virtual worlds are gaming platforms. These have several characteristics that are similar to the Metaverse. Through gaming platforms people can play games, interact with others and create content simultaneously. Several games also have their own economic systems, including in-game currencies and a set of rules for using such currency and related payment solutions. Most platforms can be accessed without specific VR devices.

They differ from the vision for the Metaverse in so far that they are not interconnected with other virtual worlds and because they have limited capacity. This means that it is not generally possible to move yourself (your avatar), your assets and your history from one gaming platform to another.

Minecraft

Minecraft is an online computer game developed by the Swedish gaming company Mojang. The game has more than 90 million monthly users. The objective of the game is to build structures, houses and tools consisting of LEGO-like cubes or bricks. The game can be played alone or together with multiple players simultaneously and supports various modes – from creative mode where you build structures to survival mode where you fight monsters and zombies. The game can be played on a tablet, PC or a smartphone, and the graphics are relatively simple. Minecraft was one of the very first online games to adopt its own economic system in which players can trade virtual objects with one another.¹⁰

Fortnite

Fortnite, developed by Epic Games, is one of the largest online gaming platforms in the world. It now has nearly 83 million monthly players.¹¹ The online survival game is best known for its “Battle Royale” mode in which up to 100 players compete to be the last person or last team standing. The game also supports other modes where players can interact with others and build virtual environments. It is available on all gaming consoles, as well as smartphones, tablets and PC.¹²

The game is free to download, but the platform uses its own in-game currency (V-bucks), which can, for example, be used to buy clothes and equipment for your avatar. Artists such as Travis Scott and Ariana Grande have staged huge concerts in Fortnite. Both earned nearly USD 20 million from the sale of tickets and virtual concert effects, and the concerts were watched by millions of people in real time. This resulted in more people realising the commercial potential of virtual worlds.¹³

Roblox

Roblox is an online multiplayer gaming platform in which players can develop their own games and play thousands of games developed by others. The platform is particularly popular among children. Roblox has more than 200 million monthly users – more than half of all American children under the age of 16 play games on Roblox and 67 % of all users globally are children under 16.¹⁴

On Roblox, games can be played together with friends, and you can create networks of friends in the same way as you would on social media. Game developers can earn money from the games they have developed (although Roblox also takes a share).¹⁵ Roblox has its own in-game currency – Robux – which can be used to purchase in-game upgrades, perks and other virtual objects.

Today, the popularity of Roblox is touted as one of the driving forces behind the Metaverse. The fact that so many children are used to playing and interacting with others in online gaming worlds could be an indication of a movement towards a more virtual and immersive internet.¹⁶

There are virtual worlds that are not focused solely on gaming. These may be reminiscent of the vision for the Metaverse as they offer a variety of activities and services.

Second Life

Second Life was one of the first virtual 3D worlds to break through in the early 2000s and was not based around gaming. In Second Life, users were able to choose what they would do on the platform without any built-in history or specific tasks to perform. Instead, the platform was able to offer something new – escapism. In Second Life, users were able to create and live an alternative life, similar to the game The Sims. However, unlike The Sims, it was possible to experience Second Life together with other users. Users could socialise, develop their own content and move around freely.¹⁷

The platform also had its own economic system and currency – Linden dollars – that could be used to buy clothes or equipment for your avatar. Avatars could be anything from a representation of the user or a fantasy character of their choice.

At its peak, Second Life had 16 million users. Many institutions and companies created their own office buildings on the platform, including NRK (the Norwegian Broadcasting Corporation), DNB (Norway’s largest private bank) and several Norwegian universities. Sweden even created an embassy in Second Life.

However, building and developing in Second Life turned out to be quite challenging for most people. Many users did not understand what they were supposed to do as there were no clearly defined story line. The number of users dropped drastically over time. The platform still exists but now has far fewer users. Second Life differed from the vision for the Metaverse in so far that it was closed, difficult to use and perhaps not sufficiently immersive for users.¹⁸ Nevertheless, Second Life did provide a taster of what could become possible in a massive virtual universe.

Horizon Worlds

Meta has also launched its own virtual platform – Horizon Worlds. This is essentially a gaming platform, on which players, represented by avatars, can interact with one another, and collaborate to solve tasks. Horizon Worlds combines gaming and social interaction, and aims to connect people in a new way, similar to what Facebook initially did.

The platform is intended to be a sort of prototype for the Metaverse, but its popularity is currently limited. Horizon Worlds has been criticised both for poor graphics and resolution, and there have been claims that not even Meta employees wish to spend time there.¹⁹

Blockchain-based Worlds

A separate category of virtual worlds are the blockchain-based platforms. These differ from other virtual worlds for a variety of reasons.

Firstly, most social and game-based virtual worlds are owned and operated by one central player, usually the company that owns the platform. Blockchain-based platforms, however, are built on decentralised blockchain technology. In short, this means that all information about what the avatars in these worlds build, buy and sell to one another is recorded and stored using encrypted files on various servers including the users’ PCs, instead of being stored in a central database controlled by a single entity.

Secondly, economic activities on blockchain-based platforms are often based on the use of cryptocurrencies and crypto assets. This entails new and different opportunities for users to earn and speculate in virtual assets. In these worlds, users can create assets, but they can also develop their own content, play games and interact with others.

Thirdly, it can be easier to move currency and virtual assets between blockchain-based platforms, than between closed game-based and social virtual worlds. Cryptocurrencies and crypto assets can be exchanged through a crypto exchange, and as such, be transferred from one blockchain-based platform to another. Blockchain-based platforms are therefore less closed and in that sense more similar to the vision of an interconnected Metaverse.

Decentraland

In Decentraland, users can socialise, buy, rent, sell and build self-produced properties and virtual goods using cryptocurrency. Trading takes place using two types of tokens – LAND (for the purchase and sale of crypto assets) and MANA (which is the cryptocurrency of the platform). Decentraland claims to have 8,000 daily users, but, according to the blockchain tracking tool DappRadar, the world may have as few as 34 daily users.²⁰ This could indicate that the presence on the platforms is not as immersive as the vision for the Metaverse sets out or that the social attraction is not sufficiently strong.

The Sandbox

Users of the virtual world The Sandbox can create, buy and sell virtual goods in a virtual marketplace. The platform was mainly an online video game but has since developed into a social 3D universe with economic opportunities. Here, transactions take place using SAND – the platform’s own token. The Sandbox rose to fame when the rapper Snoop Dogg built his own virtual property and held concerts there. The neighbouring property to Snoop Dogg’s sold for nearly USD 500,000.²² Like Decentraland, The Sandbox has limited user numbers – less than 1,000 on a daily basis (and as low as 23 on certain days).²³

In summary, the virtual worlds that exists today have various characteristics that may resemble a Metaverse. However, we are still far away from a fully-fledged immersive and interconnected Metaverse with unlimited capacity.