Definition “Metaverse” and what you should know about it as an enterprise

Ever since Facebook founder Mark Zuckerberg announced he was putting his full focus on the Metaverse, it’s been hype. Zuckerberg also immediately renamed his company “Meta”. Yet the metaverse is not new. The idea was inspired by the science fiction novel “Snowcrash” by Neal Stephenson from 1992. It comes from a time when the Internet was not yet known. But for the first time a definition to the Metaverse.

The Metaverse is a three-dimensional virtual world. As an avatar, you move in a 360° environment similar to the real world. You can enter normally via the web browser or use VR glasses for a better experience. Basically it’s like a 3D game, just not a game (?).
The possibilities in the Metaverse are endless. Except for basic physiological needs like eating and drinking, many everyday activities will be possible virtually in the Metaverse:

• Playing
• Sports
• Shopping
• Working
• Events like concerts etc.
• Culture like museums, exhibitions etc.
• Sightseeing in virtual New York or Beijing
• Education and learning
• and much more.

The metaverse is the next logical step of the Internet. After Web 1, where you were only a consumer, and Web 2, where you actively participated via social media, comes Web 3. The 3rd generation of the Internet is decentralized and enabled by technologies such as the blockchain. People log in to platforms with their crypto wallet. Cryptocurrencies will play an immense role. Everything that is always bought, used or sold Metaverse will be paid with cryptos. The Metaverse is its own economic world.

Another important topic in the virtual world are NFTs, so-called non-fungible tokens. They are virtual goods on the Internet that are only available once, which is ensured by the blockchain. NFTs can be clothing, equipment, etc. for avatars, properties in the metaverse or simply images.

The Metaverse offers many business opportunities for companies, e.g.:

• Platform for advertising, marketing and sales,
• Purchase of land and its management,
• Events and shows,
• Sale of virtual goods (NFTs) and physical goods.

The potentials are huge. Already, companies and brands are making millions of dollars on virtual metaverse platforms like Roblox, Decentraland, Sandbox, and Axie Infinity.

Many companies also use the Metaverse for employer branding to attract young talents.

We at Umdasch Group Ventures are intensively involved with the metaverse. There are many questions that concern us all – technically, ethically, and socially.

• Who reacts to and controls the metaverse?
• What impact does it have on the real world?
• How do you secure people’s personal rights in the metaverse?
• Which platforms will prevail?
• The metaverse requires huge computing power and therefore energy. How does one deal with the ecological footprint?

The metaverse is coming for sure. What exactly will come, we cannot say today.
One part is in our hands, namely which platforms we give power to through our participation.
The pandemic has accelerated some things. Remote Working, Remote Beer or Remote Coffee are already very familiar to us. So it stands to reason that we will soon be sitting together at a table as avatars instead of watching video calls on tiles with poorly resolved videos.