Metaverse Review 2022: A Guide for the Enterprising

2022 revealed to me that we inhabit three distinct worlds.

Three groups have different opinions about the metaverse, with different ideas about how the year went. All of them are necessary to get the full picture. We don't know whether it will be great or not, but we need to take a look at all three worlds to find out how to connect in a positive way. Let's come together in 2023, instead of staying separated like in 2022.

Which one are you?

The Big World

The first group believes this is the metaverse. However, there are many misconceptions about it. This group believes the metaverse is a more advanced version of the internet, where we can socialize through VR headsets. This analogy has been used in thousands of articles, often in reference to the book Ready Player One. What is often overlooked is the fact that the metaverse is not just about technology, but about the people and the experiences they share, and the culture it creates. It is a place where people come together from all around the world to collaborate, create, communicate and play.

We know why this happened. In 2022, news sites equated the metaverse to Meta (sometimes simply calling it Facebook), and pinned its entire future on the success of one company. These articles focused on the consumer-oriented fluff that was far removed from reality. They also made a common mistake, assuming that VR would be the only access point and disregarding the potential of desktop and mobile applications. These misgivings led to the idea that the metaverse was only a product of a single company, rather than a multi-faceted platform that could be accessed by anyone with an internet connection.

Why did this happen?

Some of it comes from news that highlight the most exciting developments, but, unfortunately, use outdated terminology that fails to keep up with the rapid evolution of the metaverse. This can create an inaccurate impression of the metaverse, as well as its businesses and the people running them. As a result, trust and understanding can suffer, which can have a negative impact on the decisions made and the overall success of a business. This lack of trust or understanding can be detrimental to the success of any business operating in the metaverse.

How did this happen?

It's a complex issue, but I firmly believe that perception plays a role in this. In a media landscape saturated with false information, it can be difficult to establish a sense of trust and connection. We need to do more to demonstrate the metaverse's value and potential to the public. This is a challenge, but it is one that can be overcome if we work together to create an accurate and honest representation of the metaverse.

We have failed to effectively convey our worth to the industry and make it clear which labels should be linked to the metaverse. Discussions are still ongoing regarding whether platforms such as Roblox or Decentraland should be referred to as micrometaverses, intraverses, or other 'verses' that have been mentioned in LinkedIn comments. This lack of clarity in our messaging has been our undoing, and we have done ourselves no favors by sharing these conversations with journalists.

This poor communication has greatly hindered us in 2022, and we must do better in 2023 if we are to make headway in our mission to bring more clarity to the discussion around the metaverse. If we are to succeed, it is essential that we maintain a clear and consistent message regarding our industry and the labels associated with it. It is up to us to ensure that our message is heard and understood.

The Crypto Believers

Crypto enthusiasts are excited about the potential of the metaverse as a digital future. One that is fully decentralized and allows users to own their work without a centralized entity dictating terms. This future celebrates the power of the individual and their creative potential, as well as the potential of the community to come together to achieve something greater.

It emphasizes freedom over control and creativity over governance. It is a future that celebrates the power of collective action, where everyone has the potential to shape the future through their own actions. It is a future that will be built on the foundations of mutual respect and collective progress.

Today, it's easier to identify top brands that have yet to enter the crypto market.

Since the beginning of 2022 in the US, more than 5364 applications have been filed for trademarks for the metaverse. This has already outpaced the surge of interest and events of 2021, which amounted to only 1798 applications. For comparison, in 2020, there were only 155.

Compared to the figures from 2021, we have seen an impressive threefold increase in 2022, which is a remarkable indicator of growth and success for the metaverse industry. This impressive growth serves as a testament to the interest that companies have in investing in the metaverse space, as the potential for growth and profitability has become more widely recognized.

The surge in activity has been driven by the increasing demand for digital experiences, with more people adopting virtual and augmented reality technology, as well as immersive experiences.

Will the metaverse be centralized or decentralized?

Personally, the conversation is too black-and-white. While it's still difficult to say, it's clear that some level of centralization is necessary to protect users from fraud or malicious activities, and to ensure the safety of their data. At the same time, a decentralized framework could provide a layer of protection, as it would allow for a more distributed network and limit the risk of a single point of failure.

As metaverse conversations gained traction in the news, the crypto community adopted the term and has been using it ever since. Companies based on web3 principles – decentralization coupled with a new perspective on ownership – complicated the discussion on what the metaverse is.

I understand why we should explore how decentralized technologies can build on or even improve the old world at this early stage of metaverse developments. However, I remain wary of NFTs and cryptocurrencies, as many projects fluctuate between nonsense and fraud - the collapse of FTX revealed its shaky foundations.

I am also still wary of the value of metaverse land and real estate. After a year of turbulence, its value has dropped by 80% this year, making it an unstable climate for investing in digital locations.

I understand why we should explore how decentralized technologies can build on or even improve the old world at this early stage of metaverse developments. While there is certainly potential for meaningful advances, I remain cautious of NFTs and cryptocurrencies, as numerous projects in this sector can fluctuate between seeming nonsensical and fraudulent.

This was highlighted by the recent collapse of FTX, which exposed the project’s shaky foundations. This caution is echoed when considering the value of metaverse land and real estate. After a tumultuous year, the value of these digital locations has dropped by an alarming 80%, making it a potentially unreliable investment option. The uncertain nature of these projects and the risk of fraud make it important to tread carefully when considering investing in them.

The Bored Ape Yacht Club (BAYC) is a shining example of the strength and potential of the crypto community. As one of the most recognizable and well-known clubs, it has gathered and fostered passionate members who have found a sense of belonging and camaraderie in this new and exciting space.

Of course, a particularly memorable example is the metaverse from Yugalabs. This project is now the benchmark: out of 10,000 monkeys on the blockchain, it has grown into a whole ecosystem. It has released a token, raised hundreds of millions of investments, built a multi-billion dollar metaverse, and even bought out its main pioneer competitor - the CryptoPunks project.

Although the BAYC is the most notable of the crypto clubs, we are seeing a growing trend of smaller, more localized clubs forming and growing, providing the same sense of community to members. This is a positive trend that will continue to grow and become more widespread in the coming years, and we expect to see more crypto clubs popping up in 2023 and beyond.

But there is a downside. The metaverse is often confused with crypto, linking it to negative events and a controversial term. This is further amplified by crypto enthusiasts who have had financial successes and failures in the past year, and it can be difficult for people to distinguish between the two.

The technologies behind decentralized systems are reliable, however. Blockchain technology is already being used in a variety of industries, from banking to supply chain management, to increase transparency and validate the processing of items. It is an exciting trend that should be pursued further, as it has the potential to revolutionize the way we do business, as well as how we interact with each other.

It is important to remember that while tools can be used for both beneficial and detrimental purposes, the conversations we have about the metaverse should be able to distinguish between the two. Innovation and progress should be encouraged, and not discounted because of past failures or controversies. Understanding how these technologies work and their potential applications is key to creating a brighter future.

The Spatial Adepts

The spatial adepts group is comprised of immersive tech professionals who worked on virtual reality (VR) and augmented reality (AR) before the metaverse adopted their work. Some companies shifted to include blockchain solutions, while others made minor adjustments to join the conversation. Learning platforms quickly became metaverse platforms after making slight modifications to their main websites.

The public wondered what immersive tech professionals do, and many were tinkering with immersive technologies in the background. We saw new AR headset designs by Niantic and Qualcomm; Pico continue its rise as a contender to Meta (outside of the US), and enterprise companies continued their profitable work.

The spatial adepts were key to the development of new, immersive experiences for metaverse platforms, with a focus on marketing. Roblox was particularly popular for brands like Nike and Spotify, and companies raced to create virtual hubs for the younger generation to explore. These hubs often included interactive games and activities that were designed to capture the imagination of the user, while also providing an opportunity to learn more about the brand.

Moreover, these hubs were often tailored to the needs of the younger generation, providing a unique and engaging experience that resonated with them. As a result, Roblox quickly became the go-to home for many brands, with more and more companies looking to make their mark in this growing virtual world.

Taking a wider view on the metaverse

The metaverse landscape grew heavily in 2022, despite the buffeting winds.

We have all heard that Facebook -> Meta, and are investing tens of billions of dollars in the metaverse space, but:

Amazon, Apple, Google, Microsoft, Nvidia, and Tencent are also busy preparing for the metaverse rollout.

The trends will continue into 2023. But what strikes me as the most interesting part of 2022 is the differing levels of government support for metaverse-related companies.

For example, in January, Microsoft announced its largest acquisition in history, paying $75 billion for Big Tech giant Activision Blizzard, which "will provide the building blocks for a metaverse".

• Around $120 billion has been invested in the metaverse by corporations since the start of the year, according to McKinsey & Company.
• The metaverse has big plans and expectations. Citi and KPMG estimate that by 2030, it could generate up to $13 trillion in revenue.
• Morgan Stanley forecasts $8 trillion in the US and China.
• Goldman Sachs predicts a global figure of between $2.5 trillion and $12.5 trillion.
• Finally, McKinsey forecasts $5 trillion worldwide.

Jensen Huang, founder and CEO of Nvidia, which for much of the year was one of the world's largest publicly traded companies, believes that the GDP of the metaverse will eventually exceed the GDP of the "physical world".

There are three scenarios for further development

According to Deloitte's research on the future of development, there are three potential paths that could manifest. These three scenarios are each distinct and have the potential to shape the future of development in various ways:

• The first one states that metaverses will be "toys" for a select group of people, offering a unique virtual experience that can't be replicated by existing technologies. They will be a new form of entertainment, providing an entirely new way to interact with the world. It will be a platform for experimentation and exploration, enabling us to explore ideas and concepts that have never been explored before.
• The second predicts several key metaverses, where the user will have to make a choice to which to be affiliated; the options being between iOS/Android, Microsoft/MacOS, and XBOX/PS. With a large number of users and many potential applications, the market is expected to be very active and dense. It is believed that metaverses will have the potential to replace many technological solutions, offering users a more efficient, versatile, and enjoyable experience.
• The third prediction is that a single, unified metaverse will become increasingly commonplace and will be the dominant platform, allowing people to access an unprecedented level of immersive experiences in both their everyday lives and their professional interactions. This metaverse will be an open environment, providing access to a vast and diverse array of digital spaces, enabling people to communicate, collaborate, and create in entirely new ways. Furthermore, this unified metaverse will be supported by a range of powerful technologies, such as artificial intelligence, virtual reality, and augmented reality, allowing users to explore new worlds, share information, and engage in meaningful interactions.

Far from everyone understanding what a metaverse is, we are only taking the first steps.

This is comparable to the birth of the fourth era, replacing the era of computing machines of the 1950s-1970s, the personal computer and internet era of the 1980s and 2000s, and today's mobile and cloud environment.

Looking back, it's now obvious why ideas like Facebook, Google, and Netflix have generated billions and trillions of dollars in revenue. They not only brought society online and created a library of information but also made video content available in every home, ushering in a new era of unprecedented convenience and accessibility. Their concepts and implementation were revolutionary, and have enabled people and businesses to operate in ways that were unimaginable just a few decades ago.

This new era of innovation has only just begun, and the level of progress that has been achieved in a short time is remarkable. We can only imagine what the future holds, and we can be sure that corporate investments, projects, and innovation will continue to drive the development of groundbreaking solutions. We can also be sure that these solutions will continue to make life easier and more enjoyable for everyone.