Blockchain and XR enabled an immersive virtual world in 2023
By Kanav Singla
Ever since digitization became central, new age technologies such as AI, ML, Blockchain and so on have come to the fore. Various new-age concepts have caught on, and the one that has gained the most traction in modern times is XR and Metaverse.
Understanding the Metaverse
When defining Metaverse, it can be put as a virtual 3D world that emphasizes social relationships. It is the fusion of augmented and virtual reality, powered by NFTs and digital currencies. With modern technologies, Metaverse allows people to experience fictional internet avatars and engage in other activities such as meeting people virtually, conducting business operations such as trading virtual and real items, or traveling to fascinating places that replicate the best of the real world and human imagination. .
Revisiting Blockchain Technology
Blockchain is a digital ledger or database that operates freely under the principle of decentralization, differentiating it from the traditional internet. Many Blockchain platforms use cryptocurrencies and NFTs for various services, including the development, acquisition and monetization of digital assets.
Metaverse: Scenario in 2022
2022 has been a year of digitization, which has allowed new age technologies to emerge at the forefront. The emergence of Metaverse and its technological advancements contribute significantly to the world of digitization. It led to masses where organizations using many of its aspects must be made aware that they come from the Metaverse. Therefore, it is fair to state that Metaverse is still being watched and its adoption is poised to grow as we move forward.
Incorporation and growth
There is no denying the fact that many organizations are incorporating the concept of a Metaverse into their business operations. Considering that almost all businesses faced an existential crisis due to the pandemic, more and more companies are gravitating towards the virtual world today – confirming the growing interest in and use of Metaverse. According to the MarketsandMarkets report, the Metaverse global market is projected to grow at a CAGR of 47.2%, from $61.8 billion in 2022 to $426.9 billion in 2027.
What constitutes the metaverse?
Metaverse involves aspects related to personalization, socialization, gamification, NFTs and decentralization, and community, in addition to an expansion of the physical spaces and the digital identities of brands in the form of a website, social media and their various initiatives. The goal is to simulate real environments and go beyond their inherent limitations through extensive user interactions.
Nevertheless, some have foreseen the development of an ecosystem where data, digital goods and commodities can be easily shared and accessed via the Metaverse. Manufacturing facilities and equipment can have distinct digital identities that replicate their states and functionality in the real world by combining Extended Reality (XR) with Blockchain. Customers and stakeholders can use these virtual entities to collaborate on improving production efficiency and developing new products.
The merger: Blockchain and Metaverse
With the introduction of WEB3.0, Blockchain strongly emphasizes the transparency of data management. Alongside a decentralized authority, it enables simple and reliable data transactions. According to the experts, the development of a safe and fair metaverse will be heavily dependent on blockchain technology. Moreover, the ability of artists to sell their creations and be fairly compensated for their work defines the new Metaverse economy that Blockchain is helping to create.
In addition, NFTs emerge as the fascinating component of the Metaverse, as they allow users to sell a variety of items such as data, services, and experiences that generate revenue for the creator community. With the decentralized internet, Blockchain places a strong emphasis on the transparency of data management, authorizing easy and reliable data exchange.
Metaverse: The Next Big Thing in 2023
The idea of Metaverse has recently gained wider acceptance in the world of technology. It integrates immersive technologies to produce an interactive experience with advanced VR and AR collaboration.
For the year 2023, there are several trends that we can foresee as the technology develops and becomes widely used, including an increase in the use of digital avatars, deeper integration with the real world, the rise of virtual influencers, the growth of virtual reality therapy, the expansion of games with virtual and augmented reality, the development of hybrid reality and the rise of virtual education and training.
In another report by Research and Markets, Metaverse in the e-commerce industry is expected to grow by $85 billion in 2022-2027, with a CAGR of 39.65%.
Understanding the Blockchain Network
Blockchain networks are decentralized databases that keep track of all network transactions. This means that every time you buy or transfer a digital asset, the transaction is visible to everyone and recorded on the Blockchain. As a result of the development of blockchain technology and the corresponding Web 3.0, it is now possible to own digital assets in the same way that we own our physical assets.
One of the critical advantages of Blockchain technology is its openness, which allows many systems (and virtual worlds) to communicate with the same decentralized database without claiming ownership. This means that once a digital item has been moved to a new account, no one can take it back or otherwise claim ownership, and the network will immediately capture any effort in that direction.
Last takeaway
From $63 billion in 2021 to over $100 billion in 2022, the expected size of the global metaverse market has increased, with more on the way by 2023. This is a remarkable achievement, especially in light of all the doom and gloom. Additionally, the value of Metaverse could exceed $1 trillion by 2030.
We just know that those who go first will benefit as long as they can create a community and give people a reason to come back. And if their communities can generate income and expand the platform’s economy by helping to create the virtual world, the latter can come to life and develop naturally, adapted to the demands and preferences of its members.
The author is the founder and CEO, Metadome.ai
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