The Metaverse Handbook summary

In 2020, something exciting happened. During mandatory lockdowns and stay-at-home orders, digital experiences were flourishing. And, importantly, they were generating profit. The young and young at heart alike sought out escape and connection in the virtual world. For instance, Nintendo Switch’s Animal Crossings: New Horizons was released in March 2020. In it, players build and upgrade houses and befriend local animals. In just two years, it sold 37 million copies.

But it’s not just games that people were buying. Combat game Fortnite has grown its user base to 350 million since 2017. In 2020 alone, these users generated $5 billion in revenue from the sale of digital accessories. That means accessories you buy for your in-game character – not physical items you can use or wear yourself.

Fortnite has digital concerts for its users too,which have attracted over 10 million attendees. They’re not alone in creating major events. In 2021, Paris Hilton hosted a digital New Year’s Eve party that attracted more than twice the number of people who were in Times Square. That’s right – more people went to a virtual party than to see the ball drop in person. Take a moment to think about your audience reach if your brand sponsored an event that size. This is the potential of the Metaverse.

Now, you’re probably either impressed by these figures, or you’re feeling a little cynical. After all, not every brand is about fun and games. But that doesn’t mean there isn’t a place for you and your brand in the Metaverse. In fact, as the Metaverse develops, there’ll be opportunities for all sectors and brands to participate, whether that’s using it as an immersive digital workplace or allowing customers to test out real-world products digitally first using simulation technology. Maybe your brand will host a social space that’ll provide you with market feedback. Or perhaps you’ll be using the Metaverse in a way we can’t even imagine yet.

So, what exactly is this Metaverse?

Simply speaking, the Metaverse is a virtual realm made up of worlds that are created by builders. Confusingly, these worlds are also called “metaverses,” but to simplify here, we’ll use the term “Metaverse” to refer to the whole virtual universe that contains these different worlds.

Some worlds use a web browser as their point of access, like Decentraland. Some use gaming consoles – you can enter Fortnite’s world using the PlayStation. And some use virtual reality headsets for a deeply immersive experience. This is the direction that Mark Zuckerberg’s company Meta will be using in its VR experience – Horizon Worlds.

Meta’s goal is to create a virtual reality where people can meet, collaborate, and share experiences like going to a conference. Essentially, it sees the Metaverse as a sophisticated communication tool where you can fully immerse yourself socially, professionally, and commercially. For instance, you might end up not only working remotely, but working virtually. Your office could be in the Metaverse, your commute as simple as donning your VR headset. As soon as you’re in, you’ll be able to walk around, attend meetings, sit at your desk and work, even chat with colleagues as you pass them in the corridor. Because of this complete immersion, many people believe that the Metaverse will supersede the internet as we currently know it.

The concept of these virtual realms isn’t new. In fact, author Neal Stephenson’s novel Snow Crash depicted the Metaverse, and it was published way back in 1992 – long before the internet had made its way into our homes. This novel coined the term Metaverse and also avatar – which means the digital version of you that exists in virtual worlds. But what’s really given the Metaverse its momentum is a shift in attitude toward digital assets.

Digital assets refers to anything that exists in the digital world – files, emails, videos. Essentially, it means bundles of data. Until 2021, these assets rarely had a defined monetary value attached to them. But all that changed in the second year of the pandemic.

You might have heard of non-fungible tokens – or NFTs. These little bundles of data form something tangible – a unique avatar, an artwork, a song, a trading card, even virtual furniture to kit out your virtual house. NFTs are coded in a way that they can’t be copied, making them exclusive. And in 2021, they became a must-have Metaverse item, so much so that $11 billion worth of NFTs were traded in that year alone.

Suddenly, owning an NFT was like owning a Rolex or a Porsche. The advent of NFTs had given digital assets value in the eyes of society. And that value creates huge earning potential for companies who are making digital assets, along with the architects and designers who create virtual spaces for people to house their digital collections.