The Metaverse has been getting a lot of attention lately, given the rise in VR (virtual reality) headsets. As a result, there is a very real possibility that the Metaverse is the next iteration of the internet, what many people refer to as Web3.
If the Metaverse does rise to prominence, what does that mean for the remainder of 2022 and beyond? Of course, no one can tell the future, but we can make educated inferences about where things are headed. Based on the report, let’s take a look at what 2022 holds in store for the Metaverse.
A Brief Overview
As a concept, the Metaverse has been around for a while. However, it began to gain traction in the market as NFTs started to take off in 2021. With the explosion of popular NFT collections like BAYC (Bored Ape Yacht Club) and CryptoPunks — which have sold for millions of dollars — a sense of legitimacy was brought to Web3 and, by extension, the Metaverse.
The current iteration of the internet and the framework upon which it’s built cannot handle the needs for a truly immersive and seamless Metaverse experience. To make the Metaverse a true reality for everyday users, many within the industry expect to see a significant influx of investments in Web3 and the technology that drives it.
What’s in Store for the Metaverse?
For starters, infrastructure has to be developed and improved. Our current internet framework cannot handle the workload necessary to provide the experience users expect. Network bandwidth has to continue to increase before the market can take the next step.
If and when the necessary latency thresholds can be met, the Metaverse economy could explode. Some in the industry expect the market to be in the range of $8 to $13 trillion. In addition to a massive economy, the Metaverse will support billions of users, either in virtual reality or on a device using augmented reality.
Speaking of markets and economy, what will money look like in the Metaverse? The reality is that currency in the Metaverse will likely be a buffet of various digital coins, tokens, stablecoins, cryptocurrencies, and CBDCs (central bank digital currencies). With these types of digital transactions, cross-border payments can happen in real-time, with traditional and Defi (decentralized finance) systems co-existing within the system.
Additionally, NFTs will see increased usage in the Metaverse as developers and users continue to discover new uses for them. NFTs will become more than just collector’s items. They will be used for in-game purchases, to show ownership of digital assets, and more.
Lastly, a properly functioning Metaverse will draw the attention of governments and regulating authorities. These entities will seek to impose their policies on the Metaverse, just as they are on the current cryptocurrency and Defi markets.
The success of the Metaverse will depend on whether or not the technology can withstand the challenges before it. With organizations like the FFPB (French Federation of Blockchain Professionals), it’s only a matter of time before Web3 and the Metaverse becomes a part of mainstream society.