A metaverse is a digital space where users can interact with each other in real-time. Also, they can you will have real-world experiences in that space. It is is a space just like an amusement park we have in the real world. We can say it is a digital theme park.
The experience you get in a metaverse is like an amusement park but you can say still more than that. A metaverse might look like a game where you create your environment and experience real-world-like feelings. Many features of the metaverse are related to a game called Fortnite. The user will have their own identity in the digital space and gets all the multitude of features offered here.
The Fortnite concept is like a metaverse but it exists and operates within the creator’s boundaries. So, it is hard to define what a metaverse looks like. A working definition of the metaverse is, it is simply a digital space provided for the users to interact with each other in real-time get real-world experiences. The core feature of the metaverse is difficult to explain and looks similar to ‘non-metaverse’.
The world we operate in is limited by physical space. The metaverse is a real-world concept but without boundaries. So, we can say the metaverse extends to infinity. In metaverse, people from around the world can communicate with each other in real-time. This is the potential feature of this metaverse.
As the metaverse is an extension of our real world, people can experience all that we used to do in the real world. Like, one can host parties, events, art shows, meetings, discussions, etc. A token system is implemented here for the exchange of the value.
There is a controversial point here. The metaverse is an extension of our world, then is there any chance of the existence of other such metaverse entities here? Ans the answer would be yes. One character in the metaverse cab is ported to another separate entity easily.
Different entities can have their metaverse. For example, Meta can give its social space for its users and Microsoft can have its space for its users. The idea here is the same but the implementation process is different.
The well-known metaverse we have in the market today is Decentraland. Since its launch in 2016, the money poured on this metaverse is steadily increasing. Bigger brands have started to advertise their products on this platform for their bigger community. This digital space of community is entirely based on blockchain technology. And it is special because it is decentralized.
Some of the cryptocurrencies based on this blockchain can participate in voting events of the platform, such as MANA cryptocurrency. The ownership of in-game items like real estate, clothes, etc was signified by NFTs.
Working of Decentraland
The Decentraland metaverse has two tokens LAND and MANA. MANA is the native token of this platform which gives its users the voting power to participate in digital space events.
MANA – It is used in major governance proposals. You can acquire this digital token in the Decentraland market space by selling any digital items/assets you have.
LAND – This represents the ownership of virtual real estate properties through NFTs. This token also offers voting power to its users.
Just like other metaverses, users can buy/sell assets and create assets in Decentraland. You can easily buy a piece of virtual land in Decentraland. Also, you will need a digital wallet to participate when you navigate through the metaverse.
Why Decentraland is so special?
This metaverse is special because users can connect in real-time and get real-world experiences. Also, can trade on virtual experiences. Since it is based on a decentralized platform, you will have absolute control over the actions in the marketplace. This platform gives you freedom and control over what you want to create and how you maintain the assets you possess in the virtual world.
You can have various smart contracts which give you limitless options to do your wish in the metaverse.
Decengraland has three main layers.
- The first layer records your ownership through smart contracts.
- The second layer is responsible to store your LAND content and all the data you uploaded in the virtual area on the metaverse.
- The third layer is a P2P network which enables the real-time connection between users.
The software language utilized by metaverse helps in creating dynamic 3D models and scenes in the digital area. The crypto market in the virtual area allows you to trade MANA tokens. The MANA token supply here is limited. The healthy price dynamic is achieved in the market by burning a percentage of MANA when the users buy LAND with MANA.
What is the worth of metaverse?
If you want to hear it in simple words, the metaverse could deliver $1 trillion as annual revenue! Facebook has plunged into the virtual world, the metaverse has emerged as ‘internet evolution’ in the investment market.
Web 1.0 has connected us online, Web 2.0 created online communities and now Web 3.0 is offering owned virtual worlds with the help of Decentralized networks.
Web 2.0 has changed the world in terms of products, services, companies which in turn changed business models, our culture, and the political structure. Web 3.0 is also going to do the same with its potential Metaverse power.
As per Grayscale, the metaverse sector can create a market capitalization worth $400 billion in 2025. It is predicted based on the internet/ social platforms used by people these days. More money will be spent on virtual worlds in the coming days to build our social status in online communities.
There will be challenges ahead for Facebook (now Meta) as they upgrade it to Web 3.0. The report from Grayscale said that the used Web 2.0 businesses should remodel their business structure removing their protective castle.
The current market cap of the metaverse is $27.5 billion which is a sharp contrast to the Facebook market cap of $900 billion. Web 2.0 businesses in total have a $14.8 trillion market cap which might be at risk if not shifted for the metaverse.