Ten things you need to know about the metaverse: The beginners guide

Almost anything you can imagine. Largely stemming out of the gaming industry, the metaverse can be used for wide ranging practical applications for enhancing our physical and digital experiences, including education, concerts, sporting events and even for buying virtual land.

A business could use the technologies for a range of purposes. Digital office buildings could allow global collaboration, on-boarding of employees, and networking opportunities. It could be used for “face to face” customer services and sales. Learning and training environments could be created that reduce physical training costs.

Access to the metaverse can be through familiar technologies, using browsers or mobile apps. At present, the best way to access these fully immersive experiences is through augmented reality (AR), virtual reality (VR) or mixed reality headsets.

In the metaverse you are represented and communicate through an avatar. Once in, users can join the metaverse freely at any time, from anywhere in the world to play games, watch events or to buy virtual land.

You pay for digital assets (land parcels or Non-Fungible Tokens (NFTs)) in the metaverse with digital money such as cryptocurrencies like Bitcoin, Ethereum, Solana and Polygon, which are basically encrypted data strings that denote a unit of currency. You keep your currency securely in your crypto wallet.

There are risks associated with purchasing cryptocurrencies that buyers should be careful of and should conduct their own research.

Blockchain is a type of distributed ledger. In other words, it is a shared database designed to record transactions or digital interactions.

Rather than a centralised system that has traditionally relied on human trust to verify interactions, entries must be confirmed and encrypted by a network. This allows entities to transfer data, money and assets directly, without the need for a middleman.

The blockchain is the enabling infrastructure for creating a fully secure and transparent economic ecosystem in the metaverse and thus a safe space for transactions like metaverse real estate.

A NFT is a unique and non-interchangeable unit of data stored on a blockchain. Serving as a digital one-of-a-kind certificate of authenticity, NFTs signify internet native property rights that can be bought and sold. As a result, this allows composability – the ability to combine and give new rights / access to owners.

Examples of NFTs include:

• A unique digital artwork
• A unique sneaker in a limited-run fashion line
• An in-game item, a digital land
• A ticket that provides you access to in-person / virtual events with corresponding perks
• Land NFTs that provide an ownable piece of land in the metaverse

Just like the internet, no one owns the metaverse. Companies are still in the process of developing it. 

• The big developers seeking to create and lead the metaverse experiences at scale are Meta, Microsoft, Apple, Epic Games and Roblox
• The large platforms offering the chance to purchase, sell and rent land in the metaverse are The Sandbox, Decentraland and Axie Infinity

The most popular way to acquire virtual land (a land parcel) is via an NFT that represents a plot of virtual real estate. You can either develop the site yourself, hire virtual land developers to build it for you, or rent existing virtual land.

Consumers can either purchase a land parcel in one metaverse or across different metaverses (a portfolio type of approach) using the platform’s preferred cryptocurrency. As in the real world, the price of metaverse land can appreciate and depreciate in value, according to the normal principles of demand and supply. Depending on whether you are using the metaverse as a platform or for an experience, most platforms have an imposed restriction on space.

Alternatively, you can invest in the potential success of emerging metaverse platforms through purchasing individual shares or metaverse-specific index funds. Popular metaverse stocks include Meta, Microsoft, Unity Software and Autodesk.

The metaverse will alter existing business models and create new ones entirely. At present, you can develop productive assets or experiences on top of virtual land, as:

Events & Services

• Building leisure venues for virtual social experiences such as concerts, trade shows, conferences, etc
• Fashion and e-commerce companies are designing virtual shopping experiences or fashion shows

Education

• Educators can build virtual rooms adjusted to their specific educational needs, enabling students to learn complex elements through 3D graphics

But also, metaverse properties can be used in innovative ways:

• Developing virtual life science laboratories that in the physical world are extremely expensive to build, maintain and upgrade
• The use of digital twins to create efficiencies
• The medical profession can virtually operate, using digital twin technology, bringing the greatest global minds together to practice complex surgeries, and explore new innovations

Just like the real world there will be business opportunities for real estate developers, land and prime property traders, and for those offering property and facility management, leasing, valuation, etc. service lines too.

At present, a regulatory environment specific to the metaverse is largely absent and is currently being considered. However, the same laws apply in terms of disclosing paid endorsements, false advertising, patent and trademark infringement, providing giveaways and data privacy. Financial transactions are largely recorded in the blockchain and remain a permanent record, so have some form of security protection. However, the wider picture on consumer rights, health and safety, contracting, etc. is still very much in its infancy.

The metaverse provides the opportunity to explore and experiment with virtual real estate in a lower impact, cost, and effort environment than real life, where regulation often restricts innovation. However, there is a balance to be struck and a large question remains on the extent of protection required, and who should be the regulator to enforce this.