The Metaverse represents a cutting-edge evolution of the digital world, blending various advanced technologies such as virtual reality (VR), augmented reality (AR), blockchain, and artificial intelligence (AI). It’s a dynamic, user-driven environment where individuals can build and shape virtual worlds according to their preferences. The rise of cryptocurrencies and NFTs has introduced new opportunities for users to monetize their experiences in these vast virtual spaces.
One prominent player in this space is Meta (formerly Facebook), which has made significant strides with its Horizon Worlds platform. Mark Zuckerberg describes the Metaverse as “an internet where you're not just watching content, but are fully immersed in it.” Other notable Metaverse projects include Otherside, Decentraland, The Sandbox, and Axie Infinity, each offering unique experiences—whether it's purchasing virtual land or nurturing digital creatures.
The term Metaverse is a combination of “meta” (meaning “beyond” in Greek) and “universe,” essentially describing a world that extends beyond the physical into digital dimensions. While the concept can be complex, it primarily revolves around interactive, 3D virtual environments supported by cutting-edge technologies like VR, AR, and blockchain.
These virtual spaces are often seen as the next generation of the internet, where users can do more than just browse or play—they can create, socialize, work, and participate in digital economies. Each Metaverse platform offers its own features, allowing users to engage in a variety of experiences and activities.
Matthew Ball, an influential figure in the entertainment industry, outlines several foundational principles for the development of Metaverses in his essay, “The Metaverse: What It Is, Where to Find It, and Who Will Build It.” These principles include:
While the Metaverse incorporates gaming elements, it offers much more than a simple game experience. Traditional video games focus on entertainment and often involve players spending money without the possibility of earning. The Metaverse, on the other hand, allows users to create entire virtual economies, facilitating interactions that mirror real-world activities such as socializing, business, and culture.
In the Metaverse, there’s no fixed plot or predetermined game mechanics. Instead, users are free to shape their environments and choose what they want to do—whether it's gaming, creating art, building, or even developing digital real estate. The possibilities are nearly endless.
The Metaverse allows users to seamlessly monetize their virtual lives through NFTs (non-fungible tokens) and cryptocurrencies. NFTs grant users ownership over their digital assets, ensuring they have full control over their creations or purchases within the Metaverse. Since these tokens are recorded on a blockchain, they cannot be altered, deleted, or taken away by developers.
Additionally, these NFTs aren’t limited to a single application, meaning they can be transferred across different Metaverse platforms. Users’ avatars, digital goods, and even virtual land plots can move between virtual worlds, increasing their utility and value.
Cryptocurrencies serve as the backbone of transactions in these digital environments, enabling users to buy, sell, and trade digital assets freely.
In 2021, Facebook rebranded itself as Meta, signaling a shift from its focus on social media to becoming a leader in the Metaverse space. Horizon Worlds is Meta’s flagship project, enabling users to interact in VR environments, create virtual worlds, and participate in digital economies. Zuckerberg describes the Metaverse as “an internet where you are present,” envisioning a digital future where users aren’t just observers but full participants.
Horizon Worlds offers a wide array of experiences, allowing users to create and navigate virtual environments, participate in activities, and even build their own spaces. Users can create anything from virtual yoga studios and cafes to immersive digital landscapes, all with the help of VR tools that allow for dynamic, interactive creations.
By February 2022, over 10,000 virtual worlds had already been built in Horizon Worlds, with an active user base of over 300,000. Additionally, Meta plans to integrate NFTs into Horizon Worlds, enabling users to monetize their creations, while Meta itself plans to generate revenue through commissions on NFT sales.
In addition to Horizon Worlds, numerous blockchain-based Metaverse platforms are emerging:
The Metaverse is already attracting substantial investment, particularly in virtual real estate. Celebrities and major corporations are purchasing land within platforms like The Sandbox, with major fashion brands and entertainment companies also entering the space. Epic Games, for instance, secured $2 billion in funding to develop family-friendly Metaverse experiences in collaboration with Sony and LEGO.
In South Korea, the development of the Metaverse has even been recognized as a national project, with $186 million allocated for its creation.
As the Metaverse continues to grow, financial institutions and tech companies are opening virtual offices, further driving adoption. JPMorgan and Dubai's cryptocurrency regulator have already established their presence in virtual worlds, while Citibank projects that by 2030, the Metaverse market could reach $13 trillion with 5 billion users worldwide.
