A report from Citigroup estimates that the metaverse economy may reach a global valuation of USD 13 trillion within 2030. The report also forecasts that money will be perceived much differently in the upcoming generation of the internet, fueled by blockchain innovations like Web 3.0.
The Basics of Metaverse
The concept of the metaverse may have leapfrogged into the mainstream followed by Facebook’s rebranding of itself. However, there have been other pioneers of this futuristic technology. A sci-fantasy term that first appeared in Neal Stephenson’s novel Snow Crash, the metaverse concept has been prevalent in the gaming community for quite some time.
In layman’s terms, the metaverse comprises a fully-developed VR environment, an effortless switching system(between VR and the actual world) revolving around a working decentralized economy. Cryptocurrencies are the preferred exchange medium, and users will be also able to preserve or trade their personal avatars or VR possessions as per requirement.
Also Read: Turkey to Set up Committee for Analysis of Metaverse and Crypto
Citi Group Report on Metaverse Development
The 186-page report titled “Metaverse and Money, Decrypting the Future” dives into the progressive technology considering every aspect of its potential contribution to the economy, including in-game tokens, stablecoins, digital assets, CBDCs, NFT, and fiat currency.
The report states “Interoperability and seamless exchange between underlying blockchain technology are critical to ensure a frictionless user experience. Different forms of cryptocurrency are expected to dominate, but given the multi-chain trend in the crypto ecosystem, cryptocurrency will likely coexist with fiat currencies, central bank digital currencies (CBDCs), and stablecoins.”
Also Read: The Metaverse Story: A Trillion Dollar Crypto Economy
Potential Incorporation across Multiple Industries
Advancements in blockchain and crypto development in addition to pandemic lockdowns have propelled forward-thinking organizations towards the possibility of metaverse incorporation. Several of these organizations belong to the BFSI sector contemplating the impact of virtual world migration on business operations and the economy. The possibility of metaverse incorporation is however not limited to these organizations only.
A multi-device compatible metaverse environment can be implemented across countless sectors including commerce, media, art, healthcare, social media, and collaboration. As a result, there is a potential target market with capitalization estimates varying from $8 trillion to $13 trillion within 2030 according to the report. Blockchain development company HashCash Consultants is collaborating with a US metaverse company, offering its blockchain and crypto expertise for further development of the sector.
Metaverse Example
The Citi report includes the futuristic VR environment of Second Life. Launched in 2003, the virtual estate has grown to a fully functional economy with USD 650 million GDP and over 345 million recorded transactions of virtual products, estates, and services. The Linden dollar was introduced as an in-world monetary exchange medium to reduce transaction costs. But unlike Second Life, the metaverse will function as a substitute economy and utilize truly trustless, authorizable, and decentralized currencies.
Wrapping Up
Metaverse development is consistently moving forward with breakneck acceleration. The potential benefits of its incorporation are closely being studied by multiple domains. The future of enterprises leveraging the metaverse to optimize growth is not very far.
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