Why the Metaverse is More Than Hype

Yes, there is hype around the Metaverse, and NFTs and Web 3.0. You can read about it here and here.  I’ll also note that the Metaverse is still in the process of being defined. For this post let’s say that the metaverse is an umbrella of virtual worlds, including augmented reality and digital assets, and is not owned by a single entity.  To dig deeper I recommend reading these two posts on types of verses and principles of metaverse.  

There are fundamental reasons why there is more to the current Metaverse enthusiasm than hype. As an angel investor, start-up advisor and fund manager, I’ve been studying this space for almost six years, have ridden the trough of disillusionment, and have seen the shift that promises signs of growth. In particular, it is not fully about the virtual worlds themselves,  although content is very important, it is the growth in the surrounding technology ecosystem that is supporting and signaling an accelerated virtual future. I’ll highlight those building blocks below. 

The innovation in Processors has been key to virtual technologies, from headsets to laptops to mobile phones. At CES 2022, Qualcomm and Microsoft announced a partnership on designing custom AR chips and integrating software platforms for a new generation of AR glasses. Apple’s M1 chip will be a game changer both for the smartphone and the rumored headset (also machine learning). Nvidia, Intel, Samsung and others are creating their own partnerships to support hardware that will enable Metaverse access. 

Depth cameras, used for capturing 3D imaging, are becoming ubiquitous on the latest versions of mobile phones, providing the ability for more people to create 3D models of objects and spaces.  Even more ways to capture holographic and volumetric content are being created from companies like Scatter and Metastage, with a 45% growth in global volumetric capture stages in 2021.  

Critical to content creation, Development Platforms are continually becoming more robust for building realistic 3D content. Companies like Epic, Unity, Meta and Snap continue to allocate billions of dollars of funding into metaverse related creation within and outside of their organizations. New companies enabling content creation continut to pop-up every day, with platforms like ShapesXR enabling content creation in 3D and 8th Wall focused on leveraging the web.

While you can visit virtual worlds in virtual reality using headsets, most, like Stageverse, Altspace, Rec Room, Fortnite are also accessible on mobile and laptops.  Headset sales continue to grow, in part, because the persistence and immersion of virtual reality set those experiences apart from other engagement. With augmented reality, the ‘heads up and hands free’ benefit will drive a whole new computing experience.  ALL major tech companies (and newcomers) are creating some type of hardware wearable to allow users to interact with a digital space.

The increasing rollout of 5G providing faster speed, higher bandwidth and lower latency, is important for Metaverse providing better performance for multiplayer interaction and visual heavy experiences. Think of this similar to 4G enabling video on mobile phones. In theory, 5G speeds could be 20x faster than 4G LTE.

Though not required for Metaverse offerings, the integration and maturity of blockchain and cryptocurrencies is getting common and easy enough to support digital ownership, and is growing in popularity for virtual goods especially in art, fashion and music. Blockchain could be the key to holding and proving one’s identity in the metaverse - across platforms. 

Beyond technological robustness- brands, consumers and Venture Investment, now have an understanding of the value surrounding the metaverse economy, how digital content can be monetized and the potential size of the market.  Both the pandemic and the renaming of Facebook to Meta brought heightened awareness to the Metaverse and opportunities to engage.

Are there challenges to Metaverse growth and scale? Absolutely. Diversity, accessibility, privacy and security will continue to require effort and monitoring while the integration of digital and physical worlds continue to evolve and become more fluidly integrated. However, as in the early days of the internet and mobile, now is the time for innovators, entrepreneurs and brands to explore what can be created as a fundamental computing shift occurs. The possibilities of connection, communication and commerce in the Metaverse are vast, and with the growth of the surrounding ecosystem, the Metaverse is here to stay.

Originally posted January 14, 2022 on LinkedIn