The opportunities and risks of Metaverse for small businesses

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The opportunities and risks of Metaverse for small businesses
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Metaverse has become one of the biggest buzzwords in the blockchain and crypto space as it promises to provide a more immersive, interactive and collaborative experience than the internet has achieved so far.

This commitment from the New World has seen large corporations such as Meta (officially known as Facebook) invest heavily in the nascent field. When most people hear the name Metaverse, a few things come to their minds: a way for the global conglomerate to demonstrate its tech-forward leanings, for the few to showcase the esoteric product or game development of non-fungible tokens (NFTs). new frontier. However, a deep dive into Metaverse reveals a whole new world, one full of new opportunities and risks for consumers and businesses alike.

While the current Metaverse ecosystem may be filled with large corporations, ultimately, small businesses will have to transform for wider adoption. Looking at the historical patterns of adoption of new technologies such as the Internet and mobile payments, it is clear that small businesses have played a huge role in attracting mass participation.

One of the key insights from Facebook’s Connect 2021 is that the emergence of the Metaverse is imminent, but the timeline for widespread adoption is at least a decade away. A study conducted by the Pew Research Center found that approximately 54% of the top technology innovators, developers and businesses. Meanwhile, policy leaders believe that by 2040, Metaverse will become a functional aspect of the daily lives of 500 million or more people around the world.

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The urgency to transition to Metaverse may not be immediate, but businesses should consider the technology at least on the periphery. By strategically using resources now, businesses will be able to improve the customer experience in the future.

To understand the opportunities and risks that Metaverse brings to enterprises, it is necessary to understand the infrastructure of Metaverse. Jon Radoff, CEO of 3D gaming company Beamable, breaks it down into seven layers:

Infrastructure: This layer is the semiconductor, materials science, cloud computing, and telecom networks upon which layers can be built. Human Interface: The Human Interface layer refers to the hardware that will be used to access the metaverse. This includes everything from mobile devices to VR headsets. Decentralized: Build everything on a permissionless, distributed and democratized structure. Spatial Computing: This layer refers to the software that brings objects into 3D and allows the hardware interface to interact with it. Creator Economy: Make it easier for creators to make and monetize Metaverse projects. Discovery: Discover ways to experience. Experience: Users can participate in games, social experiences, live music, and more.

Most small businesses will likely be involved in bringing the Metaverse experience to their customers. Speaking to Cointelegraph about the disruptive potential of the Metaverse, Naveen Singh, co-founder and CEO of decentralized data management network Inery, said:

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“It is no longer an issue that Metaverse will be a major disruption to the digital economy. The real focus now is which industries are most important to Metaverse. As the gateway to a new digital economy, Metaverse opens up new possibilities for multiple fields.”

“The industries most likely to transform and feel the direct impact of Metaverse are gaming, fashion, entertainment, media and retail. At the same time, for the Metaverse to reach its full potential, one of the most decisive attributes will be the interoperability of its structure sex,” he said.

Metaverse is reshaping the industry

The gaming industry has traditionally been a trailblazer in adopting cutting-edge technology, and Metaverse is no different. Many gamers already see Metaverse as the next frontier in gaming. Games today can often feel lonely, developers say. While multiplayer tackles isolation to some extent, Metaverse takes immersion and community to a whole new level. Communities created by Metaverse projects like Decentraland, Axie Infinity, and Sandbox provide not only social benefits, but monetary benefits as well.

However, the current Metaverse gaming space is dominated by big companies. Metaverse games are often developed beyond the budgets of small businesses. Besides gaming, real estate is another industry that could be an early adopter of Metaverse, according to Nikita Sachdev, founder and CEO of Luna PR. Sachdev told Cointelegraph:

“For real estate, companies and institutions are always looking for ways to tour and visualize properties for pre-sale and foreign investors. Imagine if you could even tour the entire compound before development? Investing in real-world properties would become even more personal. Immersive, no more ‘open house’.”

The global real estate market is estimated to be worth more than $3 trillion, and any potential impact in this area could have huge economic and social implications.

Fashion is another area that could be upended by Metaverse. In fact, Metaverse Fashion Week has been successfully held, including fashion shows, parties, immersive experiences, shopping, panel discussions, and more.

Since Metaverse and fashion are ultimately about identity, they must complement each other, argues Wahid Chammas, co-founder of open-source design platform Faith Tribe. Speaking to Cointelegraph, he said:

“People venture into the metaverse and do all kinds of things to live and portray their identities that may not be in the real world. Wearables are undoubtedly the best at showing your personality and identity. This connection between physical and digital stands out. Given your perceived identity, we believe there will be further disruption in both the physical and metaverse fashion worlds for brands that are serious about digital fashion.”

Risks associated with Metaverse

Exposure to Metaverse may be more risky for small businesses. The ecosystem is still being formed, and the uncertainty and nascent nature of the Metaverse may lead some companies’ roadmaps astray. This was explained by Jake Fraser, head of business development at Mogul Productions, who told Cointelegraph:

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“Technical expertise and knowing how to virtually build environments for users is a fluid space that requires people to keep their pulse on the best possible user experience. There is also a need to provide value to users and what they can’t get from your brand elsewhere Unique stuff. It’s hard to drive enterprise adoption without a clear ‘hook’.”

However, it is clear that venturing into Metaverse for related companies not only helps companies prepare for the future, but also makes their current offerings more profitable. The benefits far outweigh the risks. Aurora42 CEO George Narita told Cointelegraph:

“The biggest risk is not going into the virtual world. I see a lot of opportunity, especially for early adopters, like in the early days of the internet age; many people don’t understand how to communicate. It’s not enough to be in the metaverse. Those who have disruption Those who have a sexual vision and provide experiences and emotional connection through co-creation with their followers will be ahead. Today, people don’t want to be passive, they want to be part of the building of this universe.”

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