Metaverse is the latest hype in Silicon Valley and the tech giants are investing billions of US dollars. But what is the Metaverse anyway? How can you or should you get in now?

Metaverse

Metaverse is a vision for a shared online world that does not currently exist. It merges the virtual world, augmented reality and the real world. Users have a digital identity – an avatar – and move seamlessly between different virtual spaces and applications. These applications can be highly diverse – from health and gaming to shopping, digital events and clubs.

There is not yet a fixed definition of the Metaverse that everyone agrees on. However, there is a much-noted essay by the American investor Matthew Ball, which Mark Zuckerberg has made compulsory reading for his employees. It describes some key points that are emerging as a framework for discussion. These include that the Metaverse functions in a decentralised manner is owned by no one, and cannot be stopped or paused. In addition, it has its own economy and the content is co-created by the users.

The big tech companies see enormous potential in this vision and are therefore investing large sums. They are also interested in securing spheres of influence in this future world – in other words, the question: what will we use to log in? On whose servers will our avatar be stored and who will determine the rules of the game such as standards and interfaces? Because Mark Zuckerberg of Facebook saw such great potential here, he immediately gave his company the name “Meta” in 2021, which is why many now mistakenly equate the US giant with the Metaverse.

A new pair of shoes in the wardrobe and in the Metaverse

However, Metaverse users do not only consume, they actively shape the Metaverse. Anyone can create rooms, events, shops or clubs and help shape them. People live, work and communicate in this digital world. However, it is not cut off from the real world, but the two universes intertwine. Objects, services and places can be transported from one world to the other.

For example, a purchased item such as a shoe can have two manifestations: it exists physically and is sent to the customer, but she also possesses it as a digital image. Her avatar in the Metaverse can wear the shoe or she can resell it in the Metaverse through different channels.

Certain technologies are prerequisites for the emergence of the Metaverse. These include good virtual reality software and hardware, blockchain, artificial intelligence, 5G and much more.

Some of these technologies are not yet sufficiently mature. For example, no one wants to wear huge, heavy virtual reality glasses all day or for several hours a day. They damage the eyes and are uncomfortable to wear because you are cut off from your physical surroundings. However, industry and the military are already working flat out on small, lightweight data glasses to solve this problem.

What does this mean for traders?

Since the Metaverse does not yet exist, traders do not have to do anything in particular in relation to this vision. This digital world will emerge slowly, no one can flip a switch here. However, the foundations for the future are already being laid. In order for companies to keep pace in the future, they need to do two things:

-Keep an eye on developments and learn about new trends and technologies, as well as their impact on their own industry.

-Do your digital homework! Absolute basics like a functioning merchandise management system, a CRM or a good online presence are also crucial for digital evolution. In other words, you don’t enter the future if you have to start with Adam and Eve.