Metavers: Will the future be virtual? Detailed explanatory guide

The metaverse is often described as the next evolutionary stage of the internet. But what exactly is the metaverse and how will it affect the way we live and work? In this article, we explain what the metaverse is, the technologies behind it and its potential applications in various industries.

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What metavers means

In short, the metaverse is a three-dimensional (3D) virtual world, accessible through immersive technologies such as virtual reality (VR) and augmented reality (AR). It is a shared and persistent space where users can create, interact and experience digital activities such as communicating, collaborating, shopping or even working in real life.

While the idea of a parallel digital universe may seem futuristic, the origins of the concept are much older. It was Neal Stephenson’s science fiction novel Snow Crash (1992) that popularized the term “metaverse”, but the founding technologies, such as the first VR interfaces, date back to the 60s. To better understand the concept, here are the main characteristics of the metaverse:

• The metaverse continues to exist and evolve even when we are not connected.
• Users are completely “transposed” into the virtual experience through technologies such as VR and AR.
• The same avatars, assets and virtual identities can be used across different platforms.
• Metaverse offers a completely new way to socialize with friends, colleagues or global communities.

The concept of the metaverse has become increasingly popular over the last decades due to technological development, but also due to significant investments by major companies such as Meta (formerly Facebook) and Microsoft.

Examples:

In November 2021, Facebook changed its name to Meta and announced a $10 billion investment in developing virtual experiences. This excited many users and investors, and the metaverse was heralded as the new primary interface for interacting with technology. Even Bill Gates has joined the wave of enthusiasm, expressing his belief that meetings will move from in front of screens to the metaverse. Unfortunately, the initial enthusiasm has been tempered by the financial and technological challenges.

Fall of the metaverse: hard lessons from 2022

If 2021 and early 2022 represented a period of intense optimism, the end of 2022 brought a significant change, marked by a sharp reassessment of investments and initial enthusiasm. Taking place:

Significant financial losses

A number of large companies that bet on metavers have suffered significant financial losses. One of the most iconic moments heralding the decline of metavers was the massive loss recorded by Meta’s Reality Labs division – $13.7 billion in 2022. The following year, in 2023, the losses increased to $16.1 billion.

These losses sent a clear signal that the technology was nowhere near ready to fulfill its financial promise. Even large companies, like Disney, decided to completely abandon their metaverse-related efforts, disbanding entire divisions.

Backlash against aggressive marketing of metavers

Another important factor was the general negative reaction to the large amount of aggressive marketing that was associated with metavers. Industry after industry rejected the term “metavers” as excessive and misused. Apple, for example, avoided associating its new Vision Pro headphones launching in 2024 with metavers, preferring the term “spatial computing.”

Shifting consumer priorities

After the harsh restrictions during the COVID-19 pandemic, consumers were more eager to resume their physical lives than embrace virtual experiences. Few were interested in spending money on VR or AR devices, and the lack of active users directly affected the sustainability of the metavers model.

Lessons learned from breaking the metaverse bubble

• Hype can’t replace reality: the tech industry has shown time and time again how exaggerated expectations can lead to big disappointments. Metaverse was a clear example where the idea was oversold before the infrastructure was ready.
• Consumers want sustainability and tangible value: Technologies that do not deliver immediate and tangible value to consumers cannot sustain hype in the long term. No matter how impressive the technology is, without a practical and affordable usage model, adoption will remain minimal.
• The need to adapt: Companies like Apple have managed to learn from their competitors’ mistakes and have chosen a more subtle and direct approach, focusing on terms like “spatial computing” that emphasize concrete applications.

How the metaverse works

Underpinning the metaverse are various advanced technologies that contribute to immersive experiences and cross-platform interoperability. Highlights include:

• Virtual Reality (VR): users are fully immersed in a three-dimensional digital world, accessible through VR headsets and other sensory devices (e.g. haptic gloves).
• Augmented Reality (AR): Tranched into the real world, digital elements are added through apps and devices such as AR glasses or cell phone screens (Classic example: Pokémon Go).
• Mixed Reality (MR): combines elements of virtual and augmented reality, allowing digital objects to interact with the real world and vice versa.
• Artificial Intelligence (AI): Advanced algorithms make metaverse experiences smarter, personalized and fluid.
• Blockchain: Enables transparency and security by creating decentralized digital economies, such as using cryptocurrencies and NFTs.
• Digital Twins: Virtual representations of real-world objects used for simulations and testing.

What is Augmented Reality (AR)

Augmented Reality (AR) adds digital elements on top of the real world. Think of games like Pokémon GO, where animated creatures ‘appear’ on the sidewalk or in the park when you look through your phone’s camera. Basically, AR blends virtual components with the real world, using devices such as cell phones, tablets or smart glasses.

Key features of AR:

• Overlays 3D graphics, text or information onto the real environment.
• Requires simple devices such as cell phones or tablets.
• It is interactive and adapts to the real environment.

Practical examples:

• Retail and shopping: AR apps let you ‘try on’ clothes or visualize furniture right in your living room before making a purchase.
• Education: School textbooks come to life with animations and extra explanations when scanned.

Bottom line: augmented reality (AR) excels when it comes to interacting with the real world without replacing it.

What is Virtual Reality (VR)

Virtual Reality (VR) completely transports you into a digital world. Using devices such as VR goggles (e.g. Oculus Rift or HTC Vive), users can experience a completely different reality, completely disconnected from their physical environment.

Key features of VR:

• Creates a fully immersive virtual world experience.
• Requires specialized equipment such as VR headsets and sometimes handheld controllers.
• The real environment is completely replaced by the digital.

Practical examples:

• Gaming: VR games are built to provide an immersive experience where you actually feel ‘in the game.’
• Training Simulations: Used in aviation, medicine or industry to simulate complex and dangerous processes in a safe environment.
• Virtual tourism: Explore the pyramids of Egypt or the Great Wall of China without leaving your home.

VR is ideal for scenarios where reality must be completely replaced, offering experiences that challenge the physical world.

What is Mixed Reality (MR)

Mixed Reality (MR) combines the best elements of AR and VR. With MR, virtual objects are not only superimposed over the real world, but can dynamically interact with the physical environment around them. Technologies such as Microsoft HoloLens are an example of a device that facilitates MR.

Key features of MR:

• Fluid combination of real and virtual elements.
• Bidirectional interactions between physical and digital components.
• Requires dedicated devices such as HoloLens or Magic Leap.

Practical examples:

• Remote collaboration: engineers can work on the same 3D model from different locations, with the object ‘placed’ across the room.
• 3D design: Architects can visualize 3D models of buildings in an environment placed on real ground.

Here is a comparison table for Augmented Reality (AR), Virtual Reality (VR) and Mixed Reality (MR):

Metavers: practical applications in different industries

Although metavers is an evolving field, its first applications and benefits are already visible in different industries.

Customer services and e-commerce

Companies can create virtual shopping experiences such as digital fitting rooms or interactive virtual showrooms. For example, the fashion industry uses AR to allow customers to try on clothes virtually.

Education and training

Virtual reality is used to train employees in risky industrial environments or for training sessions. VR simulations eliminate the need for costly real-world training.

Industry and design

In the sector known as the “industrial metaverse,” organizations are using digital twins and VR to remotely design and monitor products, factories or supply chains.

Health

Through metavers, simulated surgical practices, pain management therapies and immersive medical training are becoming possible.

Gaming and entertainment

Popular platforms such as Minecraft, Fortnite or Roblox have demonstrated the value of immersive technologies in gaming.

Pioneers building the future of the metaverse

Here are a number of notable personalities who, through their work and the companies they run, are playing an important role in the development and promotion of metaverse technologies.

Mark Zuckerberg (Meta)

Mark Zuckerberg captured the world’s attention when Facebook became Meta, a move that symbolized the company’s commitment to explore and dominate the metaverse. Meta has invested billions of dollars in virtual and augmented reality, with the goal of developing a “social metaverse”. Products such as the Oculus VR glasses and the Horizon Worlds platform are just some of Meta’s initiatives transforming digital social interactions.

Jens Bergensten (Minecraft)

Minecraft completely changed the world of video games, giving users the freedom to create and explore open virtual worlds. Jens Bergensten, the key person behind the development of Minecraft, has significantly contributed to the refinement of this platform, which is considered a forerunner and a space of innovation for the metaverse. Minecraft has shown the ability of a virtual world to foster creativity and collaboration among millions of players.

Sam Mathews (Fnatic)

The founder of the eSports organization Fnatic, Sam Mathews, has created one of the most recognizable brands in competitive online gaming. ESports is a natural bridge to the metaverse and already has global communities interacting digitally.

Tim Cook (Apple)

Although Apple avoids using the term “metavers,” the launch of the Vision Pro shows a clear direction toward metavers. This product features intuitive design, advanced technology and has the potential to redefine how virtual interactions are perceived.

Jensen Huang (Nvidia)

Nvidia’s GPUs are essential for rendering complex graphics, while the software platforms developed support industrial metaverse applications and large-scale simulations. Jensen Huang supports the metaverse infrastructure and constantly innovates to raise the level of realism and performance.

Peggy Johnson (Magic Leap)

Magic Leap, under the leadership of Peggy Johnson, redefines user experiences through advanced mixed reality glasses. These devices integrate the real and virtual worlds, enhancing the possibilities for interaction.

Sam Altman (OpenAI)

Sam Altman, through OpenAI, is transforming the way artificial intelligence is applied to populate and animate metaverses. Thanks to OpenAI, we see advances in the creation of intelligent virtual agents, sophisticated non-human characters, and personalized experiences in digital environments.

What’s next for metavers

While the future looks promising, large-scale metaverse deployment comes with significant challenges:

• High technology cost: Developing and maintaining metavers platforms involves massive capital investment.
• Data privacy: Users may be vulnerable to excessive data collection or exploitation of their digital behavior.
• User ergonomics: Devices such as VR headsets can cause physical discomfort after prolonged use.
• Regulations and ethics: Lack of clear regulations complicates the process of protecting users from abuse and misinformation.

As the metaverse goes through what appears to be a “rebranding period,” major companies continue to invest in its infrastructure. For example, Statista estimates project that the metaverse market will grow from $74.4 billion in 2024 to more than $500 billion by 2030.

In short, the metaverse is poised to redefine the way we work, socialize and have fun. However, the success of this concept will depend on how easy and attractive it is made for ordinary users. Metaverse’s experience underlines this simple truth about technology and business in general: adaptability and user-focus are the keys to long-term success.

If you’re interested in cryptocurrencies, blockchain technology and metavers, we invite you to the Abarai blog where you’ll find a number of valuable resources. Editor’s recommendation:

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