In a report on the metaverse sector, Coinshare delivers insightful insights into how the metaverse could change society through groundbreaking blockchain technology.
Like many web3 concepts, the definitions and interpretations of certain language elements can still be unclear. The metaverse is one of those terms. It can mean many things. And users don’t always agree on the exact definition.
First of all, if we analyze the etymology of the word, metavers is the contraction of metawhich comes from Greek and means “after, beyond”, and pour for universe in english. We understand that this term therefore means beyond the universes, something more extensive. It is in Neal Stephenson’s “The virtual samurai” that we first find this concept of metaverse, in 1992, long before the creation of Bitcoin.
To give a general definition, the report tells us: In general, we think it’s good to aim for global, interoperable, user-owned 3D virtual worlds built on top of the existing internet. To avoid confusion, the Metaverse is neither a game, nor an application, nor a store. It’s not just virtual reality either. Nor is it a single digital world or space. It won’t replace the internet and won’t (probably) eat up our lives altogether. »
This vagueness around the concept of metaverse will therefore affect investors’ and users’ perceptions of its potential use and how it works.
More and more investors but with different visions
The numbers reported by Coinshare are particularly impressive, the number of companies in the metaverse sector has grown by 20% since 2001, according to the Compound Annual Growth Rate (CAGR) and recorded a rate of 293% per year in 2021 due to its explosion in popularity. ” This is likely due to the excitement surrounding the opportunities and value the metaverse could create. This has led to larger financing rounds, an increase in the number of funds and the nominal value of the capital employed. There are over 455 companies in the metaverse in 2021, just 50 in 2018. Mark Zuckerberg goes so far as to refer to the metaverse as the opportunity of the century.
But this investment has strong territorial differences. According to Coinshare, more than half of the companies in the metaverse sector are in North America, followed by 31% in Asia-Pacific, far behind we find the European Union at 14%, then 3% in the Gulf, despite the hardship. work from Dubai, which plans to change its place on the web3, and 2% in South America, the African continent is currently off the radar.
Coinshare states that this situation is particularly alarming and contrary to the web3 mentality,” Global initiatives need to rebalance metaverse development to avoid a landscape dominated by big tech. This can help reduce Web2-like features, namely data mining and privacy issues. »
This geographic disparity is not the only problem surrounding metaverse expansion.
Lots of problems for users and regulators
The first major obstacle to the development of the metaverse is the lack of advanced technology to take full advantage of these digital worlds. The metaverse will not be lived entirely on a screen, for that it is necessary to be equipped with virtual reality (VR) helmets, augmented reality (AR) glasses, as well as extended reality (XR) handheld devices. All of these tools are the future of the metaverse. But for now, they don’t offer an experience intuitive and immersive enough to be adopted by many.
In addition, developments around the metaverse remain highly dependent on the cryptocurrency market. A big deal when you know the volatility of this market and the possible crashes it can suffer. This therefore has consequences for the growth and sustainability of the development of metaverse projects.
The core of the metaverse is NFT ownership. This market is also evolving and it is still difficult to know what will become of the real value of these digital goods.
” While user ownership is an important characteristic, digital ownership does not guarantee monetary value. Using blockchain technology, one could create a fixed number of NFTs that represent a virtual country. It’s almost the same in the real world, where you can always increase the total physical land supply. But with a lot of effort and money. See man-made countries such as the Palm Islands in Dubai. Scarcity does not always determine the value of a good. It’s the question it does. One could create a fixed number of NFTs representing a virtual country, using blockchain technology. Rarity has value only in desirable places – location, location, location. »
For regulators and users, the major challenge remains data security and management. Because, before it gets to a fully decentralized universe, the metaverse goes through many phases where web2 and centralization remain ubiquitous. In addition, hacks and bugs remain a threat in web3, for example the 600 million stolen with the Ronin Chain.
So we are at the beginning of the real metavers. Just like when one wants to define a new world, a new concept, many questions arise. Despite the difficulties and obstacles ahead, the metaverse is attracting more and more people. Thousands of stakeholders remain convinced that this new digital world with almost infinite possibilities is changing our daily lives. Whether it’s the way we consume, work, live or communicate. The metaverse will be everywhere, so you better understand and master it ASAP.
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