Part II: Opportunities for a Global Metaverse
For the past week I’ve found myself deleting draft posts and otherwise confounding the efforts of my avatar to publish in this space. No matter how many times I change passwords and credentials, Nakamoto finds a way back into MetaRider. Can an AI be irrational?
What follows are some cursory thoughts on opportunities in the metaverse. I believe the metaverse is a post-nation-state technology, powered by a suite of innovations which will have historic geopolitical significance.
As metaverse markets and blockchain based governance structures evolve, they will rival and replace the crumbling institutions of the West.
Post-Nation State Technology
The CEO of Epic Games had described the metaverse as a “multi-trillion dollar opportunity.” The next-iteration of cyberspace is being built right now, even if it remains decades away.
The big looser will be the nation-state. In my MA Thesis, I defined the nation-state as a physically bounded technology which is slowly being eroded by the spatiality of networks.
If it happens at all, a post Bretton Woods and post Westphalian world-order will emerge online.
The metaverse will integrate this ‘back-end’ infrastructure with an immersive, social and three-dimensional ‘front-end.’
Disruptive IP
The NFL, Fifa, Marvel, Star Wars, DC Comics, Microsoft’s Halo, Sony’s God of War and Capcom’s Street Fighter have all produced experiences and in-game collectibles in Fortnite, including in-game outfits and overlapping marketing activations (source). These collectibles were not virtual assets registered on the blockchain. They could not be transferred out-of-world.
TV industry executives with experience in Maya, Houdini, or other CGI assets will be able to export existing IP directly into metaverse systems, and retain legal ownership. Architects with experience in AUTOCAD can advertise their work to a global virtual community.
Rather than leveraging and incentivising old world brands, emerging online worlds present a historic opportunity for designers, architects, artists, writers and creators to publish and sell their IP in the markets of tomorrow.
Time
Time does not exist in the Metaverse, but it can be coded. This includes perishable goods; a costume, a power-up or the dress of a fairy Godmother, available only until midnight.
This dynamic increases spending, but also has important implications for storytelling, jeopardy, verisimilitude and gamification.
Hard-coded NFTs and the ownership over virtual commodities they represent, have already led to significant consumer spending. This will only grow as niche communities begin to filter into the mainstream (source).
Immersive Services
Renew your UAE residency at the virtual embassy in Decentraland. Register for school and attend some classes in VR.
Connect your fitness watch/app for a health check with a virtual doctor. Explore a mirror of your city in the metaverse, unlocking access or price reductions in the physical universe.
As a big fan of real-life, i think there are many questions to be asked about the desirability of too much screen time. Equally, some of these innovations are near-term and likely inevitable.
The above factors are intended as indicative and non-exhaustive examples. Part I of this essay (Challenges in the Metaverse) can be accessed here.