The metaverse - busting buzzwords
By John Gower. Top image: Adobe stock, MO EID
Metaverse mayhem is pervading the digital world, every brand wants to be in it, everyone is talking about it. But why? And what is the metaverse exactly?
No one seems to be able to agree on the exact definition of what the metaverse is. The concept of the metaverse is one that is continually evolving since the metaverse itself is still in its infancy. Despite infinite definitions flying around the internet, essentially, the metaverse is a vision of the internet as a unified virtual world that is universal and immersive.
The idea of the metaverse is fast pervading our everyday consciousness, and as it becomes more established and accessible, the momentum of commercial interest in the metaverse gathers. Brands are beginning to recognize the opportunities of infiltrating this virtual frontier and building a presence there. If brands want to make an impact, they are going to have to think ahead and start planning a metaverse strategy. The future is coming… and we need to be ready for it.
First things first, in order to understand the metaverse mayhem going on, let’s take a look at the lexicon flying around.
Busting buzzwords
Avatar: a digital representation of you which traverses digital and virtual worlds. We can break down avatars into 2 categories: 2D representations such as social media profile pictures which do not interact with their environment and 3D avatars which are animated. Both are examples of how you can choose to portray yourself in digital spaces.
Augmented Reality aka AR, overlays a digital image on top of a user's view of the real world, using a device like a mobile phone or tablet. Think Instagram and Snapchat filters and Ninantic’s Pokemon Go.
Blockchain is a secure digitized database which keeps records of transactions. New records are added in “blocks” hence the name Blockchain. The database is maintained by a network of computers rather than a centralized body. In this way, it is decentralized. Records on the database are also viewable publicly and are anonymous therefore protecting the privacy of users. Data on the Blockchain cannot be edited, it is immune to hacking since all copies of the data are stored across a network rather than in one place. Blockchain can also be referred to as Distributed Ledger Technology (DLT), and is the technology that underpins cryptocurrencies and NFTs.
Burn: Once an NFT is “minted” and uploaded to the Blockchain, it is immutable, you cannot delete it. But you can burn it. This entails sending the NFT to an inaccessible address, and removing it from circulation. The NFT will be eliminated from the Blockchain, but all transactions leading up to the burn will remain stored on the Blockchain ledger.
Centralized refers to a regulated environment usually governed by mainstream corporations, as opposed to decentralized.
Creator Economy: In the metaverse, the creator economy refers to people and brands who are creating original content and selling that content in a virtual marketplace. It is envisioned that content creators will be key to the metaverse, creating content and experiences for others to interact with. Think of the opportunities here: selling NFTs of fashion, writing NFT songs, collaborating with brands for virtual advertising, hosting events, concerts, fashion shows, and more. The creator economy has the potential to boom in the metaverse.
CryptoCurrency is a type of digital currency. Transactions are verified and records are maintained by a decentralized system (Blockchain) using cryptography, rather than by a centralized authority, such as governments and banks.
Decentralized refers to an unregulated framework where functions are carried out by a network of users. The vision here is to prevent a monopolization of power from a minority.
DeFi aka Decentralized finance is a group of financial services using blockchain technology. They operate without a central authority and are used as an alternative to centralized crypto exchanges, or CeFi, and traditional finance markets, or TradFi.
Digital Assets is the umbrella term for assets that can be created, exchanged and stored digitally on the Blockchain. This includes cryptocurrency, tokens and NFTs.
Digital Goods are assets with monetary value driven by scarcity, but reliant on centralized platforms, brands and businesses.
Digital Ownership is when users have permission and agency to access and or use their own data and digital information about themselves and objects that they may own.
Drop: An NFT drop is the release of a non-fungible token project. A drop refers to the exact date, time, and generally the minting price of the NFT.
Ethereum: A decentralized software platform powered by blockchain technology. It accounts for 80% of the market share. With Ethereum, you can trade digital currency and NFTs too.
Extended Reality or XR is an umbrella term referring to all digital environments that merge the virtual and physical worlds. XR can refer to virtual reality (VR), augmented reality (AR) and mixed reality (MR). If we combine these together, XR can cover an entire scope of opportunities across real and virtual based environments like the metaverse. As the metaverse evolves, the lines between VR, AR and MR may all blur, meaning XR will be more appropriate.
Interoperability is essentially another way of saying transferability. In this context, the ability to transfer digital assets such as avatars and NFTs across different platforms, games and metaverses. Imagine if you could use the same avatar (representation of yourself) throughout the digital worlds, without having to recreate several different personas.
Mesaverse: Mesaverses are what we term the “current state” of metaverses. Think of one of the following like Roblex, Meta, Second Life. Currently you are unable to transfer your 3D avatar and asset between different metaverses.
Metaverse: In a nutshell, a metaverse is a network of 3D virtual worlds, where users can interact with each other, where they can work and play as if they would in the real world. The metaverse is facilitated by the use of technologies like virtual reality and augmented reality, and artificial intelligence. The metaverse is the potential future where you can transfer your 3D avatars and 3D assets between different virtual worlds.
Mint means to create or publish a unique token on a blockchain, to make it purchasable.
Mirrorworld: a digital version of the real world including virtual counterparts of real people, places, objects. Think of the Wachowski’s brothers’ 1999 film, The Matrix.
Mixed Reality fuses elements of VR and AR. A human can interact with both virtual and real objects, while virtual objects can interact with real objects.
Non-fungible tokens (NFTs): Crowned word of the year in 2021 by Collins Dictionary, an NFT is a certificate or record which proves the authenticity and uniqueness of a digital asset. It is not the digital asset but rather the unit of data associated with that asset. Since the data is stored on the Blockchain, the data is immutable. The data of an NFT can be associated with digital files like music, art, avatars, etc. and owners can trade NFTs. Unlike cryptocurrencies (fungible tokens), NFTs are unique and non-interchangeable.
OpenSea: The most widely used marketplace to trade NFTs taking up 60% of the market share.
Open Source: When software is publicly accessible so users can collaborate. Blockchain platforms are one example where code is open source.
Proof of Stake and Proof of Work are two major systems that cryptocurrencies use to verify the validity of new transactions, which are then added to the Blockchain resulting in the creation of new tokens. Whereas Proof of Work uses mining to achieve this process, Proof of Stake uses staking for the same outcome.
Skeuomorphic Design: Where virtual objects are made to closely resemble real-world ones. For instance, the metaverse could resemble the real world (like a mirrorworld) in that the physicality resembles reality but it does not have to be identical.
Smart Contract is a self-executing contract where the terms of the agreement between the buyer and the seller have been written in lines of code. The code and the terms of the agreement it contains exist on the decentralized Blockchain network, and is thereby trackable and immutable.
Utility NFTs: With Utility NFTs, the value lies in more than uniqueness and originality, the buyer receives perks too which can even be tangible and exist in the real world. Examples of Utility NFTs include access to exclusive events, early access to products, dividends, tickets, or memberships.
Virtual Economy: The metaverse is so much more than a 3D virtual world, it is an economy too. In the metaverse, we will see a virtual economy founded on digital assets and NFTs. Brands are already scrambling to monetize in this new economy, selling virtual products, hosting events, concerts and even building virtual restaurants.
Virtual Reality aka VR is an immersive experience where a user enters the digitally generated simulation of a 3D environment / 360 degree virtual world through technology. A user interacts with this world in a way that feels real via VR tools like VR headsets and haptic gloves etc.
Wallet or crypto wallet is a platform which stores your keys to access your cryptocurrency and digital assets.
Web3 is the evolution of the World Wide Web from the current Web2, it is built upon the vision of decentralization. Instead of being governed by a centralized authority that governs the operation of a platform, in Web3 the governance ideal is the concept of a decentralized autonomous organization (DAO). Communities self-govern in a decentralized approach, breaking away from tech giants. In Web2 users generated content, but in Web3 users generate, own and govern content. Web3 is also associated with Blockchain technology, cryptocurrencies, and the metaverse. But Web3 isn’t the end, there are already murmurs of plans to hatch Web5.
Web4 aka the “mobile web” is a version that has the foundations to adapt to the mobile sphere, a web that connects all mobile devices in both the real and virtual worlds, all at the same time. With Web4, the user can interact online and spread information, wherever they happen to be, via mobile devices.
Web5. There are 2 concepts of Web 5 just to confuse matters. In one idea that has been around since 2009, Web5 is the emotional web. In a TED talk, Tim Berners-Lee, who invented the web talked about Web5, an “Open, connected, intelligent Web” which he called the Emotional Web, based on emotional interaction between humans and computers, where users interact with content that interacts with their emotions / changes in facial recognition. However, in June 2022, TBD (owned by Twitter co-founder Jack Dorsey), unveiled their vision to create “Web 5” - “a new evolution of the Web that enables decentralized apps and protocols.” The premise is to create a platform that facilitates the creation of apps that allow users to control and store their own data.
Here’s how to prepare for the metaverse
There are a load of buzzwords flying around and demystifying the lexicon is one step closer to understanding the world of the metaverse, and thereby preparing to build a strategy for this new virtual frontier.
Technology and how we use it is ever changing. Whether you’re catching up with Web3 or reading about Web5, one thing stays the same, our experiences will always need to evolve with it. Irrespective of the buzzwords, you can lead the charge with shaping the future of your brand and customer experience, without sacrificing what you stand for or brand equity.
At Dialect, we’re at the forefront of the latest developments in the metaverse, NFTs and Web3. Our experts are here to help you navigate the uncertainty, make sense of the metaverse mystery and work together in preparing a brand strategy for this new virtual frontier, one that is rapidly-evolving. It’s unprecedented territory, but the metaverse is here. It is now. And it’s developing rapidly.
We can give you everything you need to know to prepare, to lay down the foundations to build your brand presence in the metaverse and ensure it survives the metaverse wave.
Be brave and get ahead of the game. We will help you build your metaverse strategy. Contact us now for an intro strategy session: intothemetaverse@dialectinc.com or download our metaverse and web3 kickstarter here.
If you would like to discover more about our integrated approach and work together on a project, get in touch.
