Framework to See the Future of Metaverse
The definitions of Metaverse and the framework of our Metaverse research
“I have an idea that the metaverse will be something akin to the internet, where there are protocols that allow users to move back and forth between different virtual spaces in the same way they move between websites. My worry is that this vision is not aligned with the interests of the people who will fund this development.” – Timoni West, Vice President, Augmented & Virtual Reality at Unity Technologies
(Source: The metaverse is ‘particularly hard to predict,’ says Unity’s AR/VR chief, 2022.02.07)
“Metaverse” is one of the most popular topics in the tech community and in the VC world right now. In 2021, the term drew a lot of attention from investors and the market due to the IPO of Roblox and the name change of Meta (former Facebook). However, this word is not new – in Neal Stephenson’s novel “Snow Crash” which was published in 1992, the “Metaverse” has been used to indicate a 3D virtual world that is the successor to the Internet.
The term has been there for almost 30 years, but there is no unified definition of what ‘Metaverse’ is. Looking into the tech companies that are building Metaverse right now, we can clearly see that different companies have different visions about what Metaverse should be. In the following paragraphs, we would like to analyze different imaginations of Metaverse right now in the market.
Web 2.0 vs Web 3.0 Metaverse
Separating Metaverse platforms by Web 2.0 and Web 3.0 is a useful framework to understand different imaginations about Metaverse. For leading centralized tech firms, a.k.a Web 2.0 companies, Metaverse refers to “Embodied Internet” – it is the next generation of the Internet that will bring people an immersive approach to interact with the content on the Internet and in real life. In Facebook Connect 2021, Mark Zuckerberg pointed out that, with 3D and AR/VR technologies, Metaverse can break the limit of current Internet and mainstream hardware devices (e.g. PC and smartphones). And, we can connect with others in a totally different way on Metaverse.
With AR and VR technologies, the boundary between the digital and physical worlds will be more blurry. AR will give users an enhancement to the reality they live in, and VR will let users access an immersive virtual world that is way beyond their living environment.
However, many users have concerns about Metaverse built by traditional tech firms. Just like what the movie Ready Player One depicts, a closed Metaverse virtual world managed by one tech company is a scary concept. The issues about data privacy, single-sided and manipulated content, and improper monetization approaches are especially concerning to users.
As a result, there is an increasing market demand for Web 3.0 Metaverse – “an open and secure virtual world which allows users to decide the direction of the platform development, own their data, and enjoy the decentralized economy”. Companies such as Decentraland, Somnium, and Cryptovoxels have released their version of decentralized Metaverse platforms. Users can transact and display their NFTs and other collectibles in virtual art galleries. Moreover, they can invest in the native tokens released by the decentralized Metaverse platforms.
(The above picture is taken on Somnium, a Web 3.0 metaverse platform)
(The above picture is taken on Horizon Worlds, a Web 2.0 metaverse platform)
Economy-oriented vs People-oriented
Another useful framework to understand different platforms’ visions of Metaverse is to put those platforms on the spectrum of “economy-oriented or people-oriented”. Generally speaking, Web 3.0 platforms are more “economy-oriented” – they mainly focus on the blockchain and trading-related functions (ex: cryptos, NFTs, and virtual real estate) that investors can use on the platforms while Web 2.0 platforms are more “People-oriented”, focusing on attracting and maintaining general users. The core technologies for the Web 3.0 platforms are decentralized technologies such as blockchain, crypto, token, NFT, and DAO. Though users can access some decentralized platforms by VR headsets, Extended Reality technologies seem like a “good-to-have” element for those platforms.
Of course, this framework is not a rigid dichotomy – there are some Web 2.0 platforms that are more focused on the economy. For example, on Roblox, creators can charge users by the game they designed, and it is common that users will get charged multiple times just in a world in Roblox.
The Common Ground: Interoperability and Inclusivity
The overall development of Metaverse requires tremendous resources and is hard to finish by one single tech player. Players with different visions about Metaverse will collectively shape how Metaverse looks in the future.
However, regardless of all the differences, there are some common grounds that those platforms shared – they all want to build a virtual world with great openness, inclusivity, and interoperability. Users nowadays are more aware of the interoperability across different platforms. Instead of locking into one closed system, they want to have more flexibility to experience different content on metaverse. As a result, developing a platform that is inclusive is crucial to engage mainstream users, not just gamers and investors.
Something in Between
Different metaverse companies will eventually work together to fundamentally change the world by building metaverse products. It’s too naive to say Web 3.0 will take over Web 2.0 in all aspects. And, a mature Metaverse platform will likely cover user-oriented functions and economy-oriented functions.
A more practical imagination about the future of Metaverse is to imagine something in between – we have a “Web 2.5” Metaverse in which users can simply enjoy their time on it while having all kinds of transactions. To encourage more creators on their metaverse platforms, Web 2.0 companies may introduce systems that empower the blockchain economy. On the other hand, companies that are working on Web 3.0 metaverse may cooperate with Web 2.0 to bring in Extensive Reality technologies that can significantly optimize the user experience, attracting more users and increasing the time people spend on their platforms.
Our Study Goal: One Step Closer to a Better Metaverse
We believe that how the future Metaverse looks will be defined by users and how different companies in this field cooperate with each other. We know that it is impossible to perfectly predict what metaverse will be in the future from now. However, in this research, we would like to explore the below sectors and provide a holistic view for people who are interested in this field:
Infrastructure
Hardware
Applications
User
Economy
Hopefully, as two users who have explored different metaverse platforms, our research can provide different perspectives to organizations and companies who are building metaverse right now and help the development of metaverse one step closer to a better world.