Metaverse: and old trend or a silent opportunity?

Introduction

Metaverse has been a hot topic during the period 2020-2022. Now it seems to have been lost its attraction, but people keep building.

Today we are going to analyze the report “Toward a successful metaverse” by Economist Impact in collaboration with Meta (Ex Facebook).

This report is divided into four chapters, each addressing a different aspect of the metaverse.

• Chapter 1 provides an overview of the metaverse and its various definitions.
• Chapter 2 identifies and analyzes the key components of the metaverse, including infrastructure, content, applications, and governance.
• Chapter 3 analyzes the most promising opportunities for the metaverse and the barriers to scaling, including technical, regulatory, economic, and social challenges.
• Finally, Chapter 4 describes and analyzes countries’ progress in scaling their metaverse capabilities and identifies several key factors critical to building a successful metaverse.

Overall, this report provides a comprehensive assessment framework that can help policymakers, business leaders, and individuals interested in the metaverse ecosystem to map the current landscape and identify areas for improvement.

Defining the Metaverse

The metaverse is defined as a virtual world that is accessible to anyone with an internet connection. It is a fully immersive environment that allows users to interact with each other and with digital objects in real-time. However, the definition of the metaverse is contested, and there are various definitions proposed by different stakeholders. Some definitions emphasize the immersive experience, interoperability, digital avatars, and a persistent “always on” virtual world. Others view it as the internet’s next evolutionary step, while some see it as a distinct phenomenon.

The concept of “presence” in the metaverse refers to the idea that users should be able to behave and feel in a virtual digital environment as they would in the real world. The embodied social presence theory proposes that avatars provide users with a sense of embodied presence by forming bonds through avatar interactions, building relationships with others, and ultimately experiencing a sense of co-presence. An enhanced sense of presence is closely tied with enhanced user experience (UX) in the metaverse.

The stakeholders in the metaverse ecosystem range from corporations to startups, users, developers, investors, policymakers, academia, and civil society organizations.

Key Components of the Metaverse

The report draws on existing frameworks proposed by organizations such as Boston Consulting Group, Deloitte, and Huawei. The key components of the metaverse include:

1. Infrastructure: The underlying technology that supports the metaverse, including hardware, software, and networks.
2. Content: The digital objects and experiences that users can interact with in the metaverse.
3. Applications: The software programs that enable users to access and interact with the metaverse.
4. Governance: The rules and regulations that govern the metaverse, including issues such as privacy, security, and intellectual property.

The 3i’s pillars framework for metaverse

The report use the 3i’s pillars framework for assessing the key enabling factors for building a successful metaverse. These pillars are Availability, Affordability, Relevance, and Readiness.

Availability refers to the necessary infrastructure, technology, and hardware required for the metaverse to function, such as connectivity infrastructure (e.g., fixed and wireless broadband, including Wi-Fi, and mobile 4G and 5G), technology (e.g., artificial intelligence and cloud capabilities), and hardware (e.g., headsets, smartphones, and computers).

Affordability covers the costs associated with connectivity and hardware, ensuring that the metaverse is accessible to all users, regardless of their financial situation.

Relevance involves relevant content and user experience and community-building initiatives. This pillar is essential for ensuring that the metaverse is engaging and meets the needs of its users.

Readiness encompasses digital literacy, governance, regulations and standards, workforce readiness, and investment.

All of these factors are essential for stimulating competition and innovation in the technology sector, which powers the development of a successful metaverse.

By assessing these four pillars, we can gain a better understanding of the key enabling factors for building a successful metaverse and identify areas where improvements are needed. However, measuring progress in building the metaverse is challenging due to the complex and rapidly evolving nature of the technology

Opportunities and Barriers for Scaling the Metaverse

The report identifies four areas of metaverse applications that show the most promise:

1. Social: The metaverse can provide a new way for people to connect and interact with each other, creating new social experiences and communities.
2. Commerce: The metaverse can transform the way we shop and do business, creating new opportunities for e-commerce and advertising.
3. Entertainment: The metaverse can provide new forms of entertainment, such as virtual concerts and immersive gaming experiences.
4. Education: The metaverse can provide new opportunities for learning and training, creating new educational experiences and resources.

The report also identifies several barriers to scaling the metaverse, including:

• Technical challenges: The metaverse requires advanced technology, including high-speed networks and powerful hardware, which may not be available in all countries.
• Regulatory challenges: The metaverse raises a number of regulatory issues, including privacy, security, and intellectual property.
• Economic challenges: Building the metaverse requires significant investment, which may be difficult to secure in some countries.
• Social challenges: The metaverse raises a number of social issues, including the potential for addiction and the impact on mental health.

Measuring Progress in Building the Metaverse

The report draws on policy papers and country-specific technology investment strategies to assess progress in building the metaverse. It identifies several key factors that are critical to building a successful metaverse, including:

• Infrastructure: Countries need to invest in the infrastructure required to support the metaverse, including high-speed networks and powerful hardware.
• Talent: Countries need to develop a skilled workforce capable of building and maintaining the metaverse.
• Regulation: Countries need to develop a regulatory framework that supports the development of the metaverse while protecting users’ privacy and security.
• Investment: Countries need to attract investment to fund the development of the metaverse.
• Collaboration: Countries need to collaborate with each other and with the private sector to build a global metaverse ecosystem.

Conclusion

In conclusion, this report provides valuable insights into the key enabling factors for building a successful metaverse. The report highlights the importance of understanding the different definitions of the metaverse and identifies the key components of the metaverse. The report also analyzes the most promising opportunities for the metaverse and the barriers to scaling.

Finally, the report describes and analyzes countries’ progress in scaling their metaverse capabilities and identifies several key factors critical to building a successful metaverse.

Overall, this report provides a comprehensive assessment framework that can help policymakers, business leaders, and individuals interested in the metaverse ecosystem to map the current landscape and identify areas for improvement.