Blockchain technology serves as the foundation for the metaverse, as many applications within it run on blockchain systems
The metaverse is a rapidly developing technology that has the potential to revolutionise how we live, interact, and work. It is a virtual world, an immersive environment shaping the digital world’s future in ways we never thought possible.
It is a digital universe that is expected to significantly impact various sectors of the economy, including entertainment and gaming.
One technology that intersects with the metaverse is blockchain technology. Together, blockchain and the metaverse have the potential to impact these sectors significantly. These impacts have ramifications across many other industries, not just entertainment and gaming.
Retail, e-commerce, supply chain and manufacturing processes can be radically transformed. Innovations in healthcare and education will not only create economic value, but they may also improve well-being and the human condition.
This article will explore the intersection of cutting-edge technologies shaping the digital world’s future — blockchain technology and the metaverse — and the potential Impact of the metaverse on these sectors.
Technologies involved in the metaverse
The metaverse is a virtual world, an immersive environment, and a rapidly developing technology with the potential to revolutionise how we live, interact and work. It allows for real-time interactions and experiences across large distances from social interactions, shared experience, trading, currency, tokenized assets, and property ownership. Users can interact and engage with each other and with virtual objects.
In a digital world, several technologies come into play in the metaverse development. The metaverse combined mixed reality—virtual reality (VR) and augmented reality (AR), 3D real-time rendering and modelling, and blockchain technology.
How does blockchain enhance the capability of the metaverse?
Blockchain technology serves as the foundation for the metaverse, as many applications within it run on blockchain systems.
This technology offers decentralisation, transparency, digital collectability, and value transfer, which are crucial for the metaverse to function correctly. Other functions of blockchain in the metaverse include verification of digital ownership, accessibility, and interoperability.
Decentralisation allows for the distribution of data and controls across a network of computers rather than being controlled by a single entity. This ensures that any organisation or group does not control the metaverse and that all users have equal access.
It provides a transparent and tamper-proof record of all transactions within the metaverse. This allows for greater trust and security within the metaverse.
In addition, it enables the transfer of value within the metaverse, allowing users to buy and sell goods and services using cryptocurrency.
Cryptocurrency is a crucial technology used in the metaverse. It enables users to convert their real-world currencies to digital form before using them to carry out any transaction in the metaverse.
It allows the user to transact within the metaverse and enable cross-border transactions. It is used to purchase resources such as NFTs, digital real estate, and in-game items. It is a vital aspect of the metaverse, allowing for secure, fast, and cost-effective transactions.
The potential impact of the metaverse on different sectors of the economy
In a report by the global provider of consulting and advisory services, Deloitte, the concept of a “metaverse,” once considered science fiction, is now a reality as millions of people are already using it on platforms like Roblox, Decentraland, Fortnite, Sandbox, and Zepeto for gaming, socialising, attending virtual events, and making purchases. At the same time, governments in Asian countries have included the metaverse in their economic plans.
According to the report, the potential Impact of the metaverse on GDP in Asia could be between US$0.8 trillion and US$1.4 trillion per year by 2035, or roughly 1.3–2.4 per cent of overall GDP.
In his report on how businesses can explore the metaverse, JP Morgan compared the hype with reality, saying, “The metaverse will likely infiltrate every sector in some way in the coming years, with the market opportunity estimated at over $1 trillion in yearly revenues.”
Sectoral impact of the metaverse across industries (adapted from Deloitte)
Entertainment and gaming
The metaverse has the potential to revolutionise the entertainment and gaming industries by providing a more immersive and interactive experience for users. Virtual reality and blockchain technology can enhance the user experience by allowing players to interact with each other and with virtual objects more realistically and seamlessly.
For example, virtual reality games can provide players with a more realistic and immersive experience. At the same time, blockchain technology can create virtual marketplaces where players can buy and sell virtual goods, thus leading to a new revenue stream for the gaming industry.
Retail and e-commerce
Retail and e-commerce are also sectors poised to see a significant impact from the metaverse. The metaverse can change how we shop and purchase goods by providing a more immersive and interactive shopping experience. The use of AI can automate customer service experiences in the metaverse.
One example of virtual stores is virtual reality technology, which allows customers to walk through a virtual store and interact with products, while blockchain technology can create virtual marketplaces. This can significantly impact brick-and-mortar retail and online shopping and create new revenue streams for retailers.
Manufacturing and supply chain
The metaverse can be used in manufacturing processes to improve product design and testing. Virtual reality can be used to create prototypes of products and test them in virtual environments. This can lead to a more efficient and cost-effective product design process and improved product quality. Additionally, blockchain technology can create a more transparent and efficient supply chain by providing real-time tracking and traceability of products.
Metaverse technologies could lead to better real-time monitoring of supply chains, operational effectiveness, and collaboration between stakeholders.
Health care and education
The implementation of immersive technologies has the potential to improve the delivery and quality of education by creating more interactive educational content and curriculum and making it available to a larger audience, including those with disabilities.
Virtual reality and blockchain technology are being used to create new ways of delivering healthcare services, such as virtual consultations and remote surgeries, to provide patients with more convenient and accessible healthcare services.
In addition, it creates new ways of delivering education, such as virtual classrooms and remote learning, as well as new opportunities in medical education and training to provide medical students and professionals with a more immersive and interactive learning experience.
This can significantly impact access to education and the democratisation of knowledge. It is significant not only in terms of monetary value but also in terms of improving well-being and the human condition.
In conclusion, the metaverse and blockchain technology are shaping the digital world’s future in ways we never thought possible. The potential Impact of the metaverse on various sectors of the economy is significant, and it has ramifications across many sectors, not just entertainment and gaming.
Retail, e-commerce, and manufacturing processes can be radically transformed, and healthcare and education innovations will create economic value and improve well-being and the human condition.
Future developments and research in the field are necessary to understand the full potential and the challenges of implementing the metaverse and blockchain technology.