Metaverse

Key points

• Metaverse is the concept of a virtual, three-dimensional and persistent environment where people interact, work and have fun.
• Part of the market associates the metaverse with blockchains and digital assets, such as tokens and items represented by NFTs.
• It is a broad idea still under construction, without a single definition, rather than a finished product with clear boundaries.

What is the metaverse?

Metaverse is the idea of a continuous digital space, in which users, represented by avatars, coexist in three-dimensional environments that persist even when no one is connected. Many see the concept as an evolution of the internet, more immersive. In the crypto context, the metaverse is often linked to owning digital items and land registered on a blockchain.

How it works

In the versions associated with crypto, elements of the virtual world, such as land, avatar clothing or items, can be represented by non-fungible tokens, which register ownership on the blockchain. Specific coins or tokens serve as a medium of exchange within these platforms, and smart contracts can automate rules, such as renting spaces or selling items.

The promise is interoperability, that is, being able to carry items and identity between different environments. In practice, this is still limited: most platforms are closed, and portability between different worlds is more of an aspiration than a consolidated reality. The concept spans everything from games to social and commercial experiences. Besides items and land, it includes digital identity, events and internal economies, in which creators sell goods and services directly to users, although all of this still depends on sustained adoption to stop being mostly a promise.

Interest in the topic fluctuates quite a bit, and many projects launched in waves of enthusiasm failed to sustain activity over time.

Why it matters

Understanding the concept helps interpret the news and separate the long-term vision from exaggerated promises. For companies, the metaverse is above all an experimental field for new formats of interaction and digital ownership, still surrounded by uncertainty about which use cases will actually take hold.

Risks and limitations

The metaverse is a diffuse concept, used for very different things, which generates confusion and exaggerated marketing. Many projects linked to it had low adoption and a sharp drop in interest. Ownership of digital items also inherits the limitations of NFTs, including doubts about content durability and the effective rights associated with each item. For this reason, it is worth separating the long-term vision from the marketing of the moment.