What Is the Metaverse Exactly?

What is a metaverse?

The simplest definition: A metaverse is a virtual world where people can interact with each other.

Where one metaverse differs from another is in that one particular word, “interact.” 

Just like in the real world, different people like to be part of different communities. Some like to socialize, some like to play games, some like to create, some like to consume.

What modern metaverses are trying to do is to bring all these different activities into one central place. 

How long have metaverses been around?

This question can be answered in many different ways, depending on what you define as a “metaverse.” 

Most people define a metaverse as a virtual 3D world. So, with that definition in mind, here are just a few of the most popular metaverses from the last 20 years:

RuneScape

RuneScape is a metaverse that was created in 2001 by two brothers, Andrew and Paul Gower. The world is set in medieval times and is considered an MMO, or “massive multiplayer online,” game.

In the game you can go on quests with other players and battle enemies. But, what separates RuneScape from just any other game is that you can also participate in the game peacefully. You can mine for iron ore, for example, and make weapons, which you can then sell to other players, essentially becoming a blacksmith.

Although RuneScape is over 20 years old, it still has over 760,000 players and brings in over 100 Million dollars per year.

World of Warcraft

A more advanced massive multiplayer game that could be considered a metaverse is World of Warcraft, also known as “WoW.” World of Warcraft was created in 2004 by Blizzard Entertainment. 

The game is similar to Runescape in that you can go on quests and fight enemies. What’s interesting about WoW is how immersive and addicting it is. In fact, two people died while playing the game, including one gamer who played for 19 hours straight.

World of Warcraft is still one of the most popular games in the world and today has 26 Million monthly users and has brought in over $9 Billion dollars for Blizzard.

Second Life

Of course, gaming is just one aspect of what a metaverse can do. Some consider Second Life to be the first true metaverse because it goes beyond just gaming.

Created in 2003 by Philip Rosedale, Second Life is exactly like what it sounds like, a virtual copy of real life. The unique thing about Second Life is that it allows you to be almost anything you want to be. Ever wanted to be an architect? A real estate speculator? A tour guide? A wedding planner?

In Second Life you can do it all. Some people have even become millionaires through having a Second Life business.

Second Life is still fairly popular with 1 Million players and brings in $100 Million dollars per year, $60 Million of which it gives to it’s players.

Why are metaverses becoming popular today?

Knowing that metaverses have been around for a while, it begs the question, “why is everyone talking about the metaverse now?”

The increased interest in the metaverse today can be associated with three things:

1. The adoption of NFT technology
2. The adoption of cryptocurrencies
3. The improvement of virtual reality technology

Let’s break down each of these.

How are NFTs related to the metaverse?

One of the reasons that metaverses have grown in popularity lately is because of the rise in NFTs. NFTs are a new technology that allows for the unique identification of digital goods. (To learn more about NFTs, you can join one of our free live NFT workshops.)

This means that when you create something in a virtual world, you can now truly own that object and prove its authenticity.

This is important because it means that the money you put into a metaverse project isn’t just a sunk cost. It also means that if someone tries to copy your virtual object, you can prove that it’s actually yours and report the copy as malicious behavior. 

Another reason that NFTs are important is because they allow you to take your virtual goods from one metaverse to another. For example, if you design a character in a metaverse and decide to sell it in the marketplace, the buyer can then keep that character no matter where they go. They can also sell that character when they’re done with it.

NFTs allow you to invest in virtual land ownership

NFT technology can also be applied to bigger items in the metaverse, such as land. Most metaverses will create a limited supply of land that users can buy. Just like with the character, when you buy that piece of land you have full ownership of it. This means you can sell it or even rent to others who want to use it.

How is crypto related to the metaverse?

Another reason that metaverses are growing in popularity is because of cryptocurrencies. Cryptocurrencies make it much easier to make transactions in the metaverse using a trusted, universal currency.

If I’m logged into the metaverse from the U.S., for example, I can now easily transact with players from India, France, and Japan, without having to convert between U.S. dollars, rupees, euros, and yen. This opens up commerce in the metaverse and makes it much easier for everyone to interact with each other.

Two of the most popular metaverses, The Sandbox and Decentraland, currently use Polygon as their common cryptocurrency, for example.

Do I need to have a VR headset to enter the metaverse?

A common misconception about metaverses is that you need a virtual reality (VR) headset to use them. The truth is that most metaverses can be accessed on your laptop or desktop computer (some metaverses can even be accessed on your mobile phone).

Virtual reality creates a more immersive experience in a metaverse, but if you don’t like virtual reality headsets or simply don’t want to invest in one, you can still participate in the metaverse and have just as much fun without one.

The Oculus Quest 2 allows you to use the metaverse in virtual reality

Unfortunately, at the time of this writing, Facebook’s metaverse “Horizon Worlds” does require the purchase of an Oculus Quest 2 headset. Luckily, the Oculus Quest is on sale right now and once you have the headset, you can get hundreds of different apps and games for the headset, so it may be a worthwhile investment.

What are the most popular metaverses?

The two most popular metaverses at the moment are The Sandbox and Decentraland. Of course there are several other metaverses and new metaverses popping up every year, so this may change in the future, but let’s take a look at these two right now.

The SandBox

The SandBox was created in 2012 and started initially as a popular mobile game. When it launched as a true metaverse in 2021, it had the benefit of marketing itself to it’s millions of mobile users.

The SandBox is focused on becoming a multi-use metaverse, with games, concerts, art exhibits, shopping centers, and social spaces planned for the future.

The interesting thing about the SandBox is that it has a lot of partnerships with big brands that it has invited to create on it’s platform. The SandBox currently has over 165+ partnerships with brands such as Adidas, The Walking Dead, South China Morning Post, The Smurfs, Care Bears, Atari, and even Snoop Dogg.

Another interesting aspect of the SandBox is that it has said it will never create any more land than the 166,464 plots that it plans to release. You can see the current price of Land here and the current price of the Sandbox token (SAND) here.

The SandBox uses a block-style aesthetic similar to Minecraft or Legos (see screenshots below).

Decentraland

Decentraland was created in 2015 as a dedicated metaverse that lets users create their own “micro-worlds.” Decentraland is open-source, meaning anyone can design whatever they want on the platform.

Similar to the SandBox, Decentraland also has partnerships with big brands. Although Decentraland doesn’t have as many partnerships as the Sandbox (only 30+), they do have some big names within their ranks including Samsung, the NBA, Coca-Cola, and the Australian Open.

Decentraland currently has 90,601 parcels of land available and you can see the current price of Land here and the price of Decentraland’s token (MANA) here.

Decentraland uses a more rounded aesthetic which you can see in the screenshots below.

Will we all live in the metaverse in the future?

It’s always fun to make big claims about the future and it certainly does get you more clicks. So,  will we “quit” the real world and live in the metaverse permanently someday? 

I don’t think so.

I believe that the metaverse, just like any other technology, will be something we use when we need it and something we ignore when we don’t. 

When web 1.0 was coming out (also known as the dot com boom), people made the same claims that they’re making right now. This goes for both sides of the argument: 

“The metaverse is just a fad, it’s complete crap!”

“We’re all going to live in the metaverse 24/7 someday!”

☝️ Both of these statements are off base in my opinion.

The metaverse is neither crap, nor is it an end all, be all. I believe that in the future there will be multiple metaverses, just like today there are multiple social networks.

We’ll hang out in these metaverses, chat with friends, maybe even work inside them, but it won’t replace our real lives. It will simply supplement them.

If you’d like to watch a film about the metaverse that paints an interesting picture of it in great detail, I highly recommend watching Steven Spielberg’s version of Ready Player One.