FEATURE
CENTURY FINANCIAL
METAVERSE:
THE FUTURE OF INTERNET Written By: Vijay Valecha Chief Investment Officer - Century Financial What exactly is the metaverse? Where does it stand now and how will it look in a couple of years? How can interested investors capitalize on the investment opportunity in the metaverse?
THE METAVERSE: “AN EMBODIED INTERNET”
Vijay Valecha Chief Investment Officer Century Financial
T
he world of immersive technology is undergoing a seismic shift as innovations rapidly alter the digital kingdoms, we live in. One of them is the emergence of the “metaverse,” touted by Big Tech as the inevitable future of the internet. For those who are unaware, the social media giant, Facebook, announced the change of its name to Meta on 28th October 2021, and Meta materials, a Canadian company that has nothing to do with Facebook saw its shares surge as much as 30% after-market, and finally ended with a 4.6% gain in regular trading Friday at $4.70 per share. Meanwhile, Facebook (now Meta) shares gained 2% to end the day at $324. While the term metaverse might sound new to many, it is essentially been around for over three decades. Passionate readers of famous books like Snow Crash or cinematic lovers of films like Ready Player One or The Matrix, know that the metaverse isn’t a new concept. It has been a theme in science fiction for decades. But soon, metaverse won’t be referenced purely in science fiction movies and books. It has already started attracting a lot of buzz in Silicon Valley and aims to become real.
30
MARCH 2022
The term metaverse is a combination of the prefix “meta,” which means beyond, and “universe.” It generally refers to shared virtual world environments which can be accessed by people using different devices. Regarded as the next best thing in technology, metaverse can be considered as a digital space made more lifelike by combining virtual reality (VR) and augmented reality (AR). It can be regarded as an immersive world where millions of users, or their avatars, can slide in and out of a plethora of activities as they socialize, work, and play. It is expected to be the successor of the mobile Internet, similar to how Web 3.0 is expected to become the successor of Web 2.0.
WHY IS IT TAKING OFF? The concept has surged in popularity post the COVID-19 pandemic. As more people function remotely, there has been an increased demand for ways to make online interaction more lifelike. Fans of the metaverse see it as the next stage in the development of the internet.
FROM GAMING TO CONCERTS AND E-COMMERCE Video game platforms are the best representation of proto-metaverse worlds. Roblox, Epic's "Fornite", Niantic's "Pokemon Go", Facebook’s “Horizon” and Microsoft's "Minecraft" all have grown organically to attract millions of users. Some like Roblox and Fortnite are expanding beyond games into other entertainment, social, and e-commerce applications. The world's biggest fashion companies such as Vans (VFC), Gucci have also experimented with making virtual clothing, which people's avatars can wear in metaverse environments.
HOW TO INVEST IN THE METAVERSE While much of what the metaverse is might still be vague, there are already opportunities for people to indirectly invest in the potential success of the metaverse.
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