In 2021 the metaverse and virtual reality were the talk of the town. What are the predictions for 2023 after a challenging 2022?
The hype for the Metaverse led to a bull run in 2021, with major tokens like Decentraland (MANA) and Sandbox (SAND) pumping nearly 100X. The excitement among enthusiasts peaked when Facebook rebranded itself to Meta in October 2021.
Studies have estimated the size of the metaverse market to be between $500 million and $1 trillion by 2030. How will the market develop in 2023?
The pillar of the Web3 ecosystem is decentralization. So it would be ironic for a single metaverse to have a monopoly on the market.
Think of it like different social media platforms, be it Instagram, Snapchat, YouTube or TikTok. Each of these platforms provides users with unique use cases. Similarly, multiple metaverses can co-exist, serving particular utilities. For example, one platform offering an extreme shopping experience, another exclusively for gaming activities. Similarly, various platforms can serve utilities for corporate or classroom activities. The potential for multiple metaverses to co-exist is huge.
Platforms can provide interoperability for users to transfer their assets from one platform to another through bridges. If a person buys a hoodie from a metaverse that offers both an offline delivery and a hoodie NFT for an online avatar, they may want to wear that hoodie on a different platform in which they attend a university lecture, for example.
business building on the metaverse
The Metaverse has attracted the attention of major brands and businesses this year. By November, the firms filed 5,364 US Trademark Application to the Metaverse and related services.
The technology has attracted luxury watchmakers such as Rolex and footwear brands such as Nike, Adidas and Reebok.
Virtual worlds may soon give car lovers a thrilling ride. bmw Has applied for Metaverse to trademark its logo. Recently, licensed trademark attorney Mike Kondoudis tweeted that Mercedes has filed a trademark application for NFTs, the Metaverse, and related services.
Jason Warnecke, a senior executive at Accenture, says, “We believe the metaverse will affect every aspect of every business, including how work is done, what products are offered, how products are delivered, and how the business operates.”
Investment firms are booming because of the interest of businesses in the virtual world. Animoca Brands is preparing to fill the metaverse with $2 billion in funding. It has inaugurated its investment wing, Animoca Capital, which will focus on mid- to late-stage metaverse startups.
AI-Powered Virtual World
2022 was a breakout year for artificial intelligence (AI) technology, with platforms such as DALL-E and ChatGPT making headlines.
The notable Metaverse platform has focused on building user-generated content (UGC) experiences. AI technology can make it possible for those platforms to fulfill their vision. According to an article by PwC, AI could make it possible for people with no technical experience to create immersive metaverse experiences.
Sam Hamilton, creative director of the Decenterland Foundation, believes that technology can and should be used to create better metaverse experiences. “AI-generated images can be used to create more realistic and immersive virtual environments.” Community Confirmation AI will be the metaverse narrative of 2023.
But, critics have raised some concerns about using AI in the Metaverse. There are fears of bad actors using AI to commit identity theft in the virtual world. By feeding AI data from certain photographs of a person, criminals can generate a metaverse avatar impersonating that person to commit fraud or other serious crimes. The Chinese government has banned the creation of AI-generated media without watermarks to protect netizens from identity theft.
Metaverse Police to gain popularity
With the rise of new technologies, the chances of criminals using them to fulfill their malicious purposes increase. Before the mass adoption of the internet, few people would have imagined that cybercrime departments would be needed to keep the internet under control.
Similarly, some aspects of society may use the metaverse to commit crimes. As discussed, AI technologies make it easier to commit identity theft in the virtual world. Not just identity theft, there are reports of more serious crimes like sexual harassment.
A 30-year-old South Korean man assumed a false identity in a popular metaverse and sexually assaulted children. Last December, a woman shared through a Medium article that she was sexually assaulted and gang-raped in the Metaverse along with her avatar.
The internet is a hotspot for hate, racial slurs, bullying etc. As well as providing an immersive experience, the metaverse can intensify hatred or emotional abuse for users. With the potential for these crimes, there is a need to police the Metaverse.
Jamilia Grier told Finance Magnates, “It is inevitable that some users will take advantage of others and crimes are committed, and sadly we may be seeing some of them right now. In the same way that there are laws to deal with, it is also important to have laws to deal with crimes committed in the Metaverse.
UAE’s Ajman Police has taken the initiative. it became The first police agency to provide its services through Metaverse technology.
After a spike in Metaverse hype in 2021, buzz slowed in 2022.
Reflecting on the hype and eventual craze in 2021, Nils Pihl, founder and CEO of Aukey Labs, says, “The hype was entirely based on people hoping to make a profit, not live in these virtual worlds. Everyone was betting that someone else would be interested.
Furthermore, Meta laid off 11,000 employees this year, leading to speculation that the Metaverse dream is dead in the water.
What are your metaverse predictions for 2023? Will it survive the impending challenges that crypto winter brings?
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