What's Metaverse “So what is the Metaverse?”

The "metaverse" quickly became a buzzword and spread widely. But in reality, the answer to the question, "What is the metaverse?" is still unclear. Some say that it is just an empty buzzword after all.

So we asked writer A, who is knowledgeable about games and Web 3.0, and individual investor B, who suffered a major failure in investing in a metaverse project, to talk frankly about the reality of the "metaverse."

A: Today we are free to discuss the metaverse freely. But first, what exactly is the metaverse? That's the question. It's not uncommon for the word to have completely different meanings depending on who uses it, so I'd like to start by clarifying that.

B: You're right, it's often used with an ambiguous meaning. Personally, I think the word metaverse is used in three contexts.

The easiest to understand is "3D digital games with high-quality games and social network-like human relationships." In this case, the metaverse is an extension of online games such as MMORPGs.

A: This is the pattern where you would think of games like "Final Fantasy 14," "Fortnite," and "Animal Crossing" as the metaverse.

If you use it this way, then all 3D games that multiple people can play and interact with are metaverses. However, it's rare to find online games these days that don't involve other people, so it could just be a cool way of saying the latest online games.

B: Another way it's used is the pattern typified by Meta, a company that changed its name from Facebook. This is a pattern that removes the game element from the "metaverse" mentioned earlier and uses it to mean a 3D space where people can interact, learn, and work.

The current Internet has moved a step forward from text-based communication, and communication using videos such as online meetings has become widespread, but we are trying to take it a step further.

The idea is to use 3D digital space and avatars instead of inorganic backgrounds and flesh and blood to communicate in a more realistic way than we can now. "Virtual Shibuya" is another type of metaverse similar to this one.

The idea that everything in the metaverse is related to blockchain is not correct

A: The two points above have nothing to do with blockchain or NFTs.

B: That's right. The idea that everything in the metaverse is related to blockchain is not correct.

Blockchain comes into play when it is used as a term to describe a 3D digital space that utilizes blockchain, crypto assets, and NFTs.

In this case, the true value of the metaverse is that digital objects in the 3D space have value, and that they can be expressed and exchanged for real-world money using NFTs and crypto assets.

A: This is why people talk about how much a plot of land is priced in the metaverse space. In previous online games, no matter how valuable a weapon was in the game, it was not possible to bring that value into the real world, but with NFTs and crypto assets, you can do that.

B: With the popularity of NFT art, the concept of using NFTs to add value to digital objects has spread rapidly, and the idea is that if that's the case, then we can find value in all things that exist in 3D digital space.

However, there are also cases where Web 3.0 projects tout the term "metaverse" for no particular reason, just to gain buzz and raise funds. It's usually used in blockchain game projects, but games that aren't even 3D to begin with write in their white papers, "We're building a metaverse!"

A: They think it's cool to call it the metaverse (laughs). Even if the game screen is crappy at the moment, it's a word that makes people hope that it might evolve into a game with amazing graphics someday, and gets them to invest.

B: This is a case where "metaverse" is used as a buzzword in a negative sense. There are some projects where it's hard to understand why they're using the keyword "metaverse," so I'd like readers to be careful.

A: By the way, the metaverse is sometimes confused with AR or VR, but I think this is a misunderstanding. AR is different from the metaverse, because it uses digital technology to project CG and other images into the real world.

VR means "virtual reality" and is very similar to the metaverse. However, in the case of VR, human interaction like that of SNS is not a prerequisite, so it is a word with a different nuance. Also, a VR headset is not a metaverse in itself, but just one of the tools to experience the metaverse and VR.

B: For example, enjoying a beautiful girl game while wearing a VR headset would not be called a metaverse experience (laughs). If headsets evolve, the experience you can get in the metaverse may become even more amazing, but a headset is not a must-have for the metaverse.

It's fine to sell land in the metaverse, but I'm not sure what you can do with that land

A: From here, let's talk about the current state of the metaverse, which is mainly used in the context of Web 3.0. B, you've invested in several so-called metaverse stocks, right?

B: I invested in The Sandbox and Decentraland at a fairly early stage. I've also bought land and tokens from other popular metaverse projects, such as NFT Worlds, but to be honest, my investment results are a mess.

For example, there was a time when it was common for land in The Sandbox to cost over 1 million yen, but now you can buy it for 1 ETH (about 200,000 yen).

A: Is that the situation for all metaverse projects?

B: Yes. At first, I was enthusiastic that if the metaverse became popular, the price of land would also rise, but my prediction was wrong. In many cases, land in the metaverse was called "land" and was put up for sale, but the real estate bubble in the metaverse has burst badly (laughs).

A: So does that mean that the Web 3.0 metaverse failed because it was too much of a hype?

B: In terms of the development of games and the Internet, the metaverse as a "rich 3D digital space" is still in its infancy, so it's not time to talk about failure.

However, it can be said that the "Web 3.0 metaverse" involving NFTs and crypto assets was driven by too much expectation. From an investment perspective, both crypto assets and NFTs were first come, first served, so I think it's only natural that a large number of people like me jumped on the metaverse.

A: It's fine to sell land, but to be honest, I don't really know what you can do with that land.

At least at this stage, metaverses using blockchain and NFTs aren't actually moving forward. Looking back, I think selling land was just a way to raise funds.

Just like the real world, land in the metaverse has little value if people don't gather there.

B: There are events that can only be realized in a 3D digital space, such as music festivals, held in Decentraland. However, it is not yet a situation where people live in the metaverse on a daily basis.

If you own land, you can open your own shop there and earn rental income. Just like in the real world, everyone has realized that land has little value if there are no people.

A: Regardless of whether NFTs or crypto assets are used or not, it will definitely take a considerable amount of time before the metaverse actually becomes widespread. There are a lot of problems, as there have been recent news reports about nuisance behavior and sexual assault in the metaverse.

B: The problem is that women who log into the metaverse are surrounded by many male avatars and are harassed or sexually assaulted.

This is already an issue on the internet today, but there are fears that the damage will become even more serious when it comes to realistic 3D space. When the digital space becomes so close to the real world, there will be both good and bad aspects.

The construction of the metaverse will fail if it does not have the appeal to continuously attract people

A: So let's talk about how the metaverse will develop in the future.

B: First of all, I think that the metaverse will be completed after various technologies have developed. In the first place, if you want to do something in a 3D digital space with beautiful graphics, you need a high-spec PC, so it's a high hurdle for most people.

You also need a fast internet connection. I think it's safe to say that the time will come when 5G, which has been a hot topic in recent years, will finally come when everyone can enjoy the metaverse.

Furthermore, if NFTs or crypto assets are involved, users will have to manage their own wallets.

Although crypto assets have become somewhat popular, the majority of people only trade through exchanges and have never even created their own wallets. In that sense, it is also essential to improve literacy regarding Web 3.0.

A: It seems like it's going to be a long road until the so-called Web 3.0 metaverse involving NFTs becomes widespread. Rather than that, I feel that there is much more hope for a metaverse that is an extension of current online games.

B: I agree. Above all, the only thing that seems to be able to solve the problem of "What will you do when you log in to the metaverse?" is games.

However, if that happens, it will be different from the Web 3.0 metaverse, because there will be no point in introducing crypto assets or NFTs to interesting games that are successful as normal online games.

A: There are now more companies and projects trying to create metaverses all over the world, and in Japan, large companies such as NTT Docomo, KDDI, and Gree have begun building metaverses.

However, I don't think any metaverse has been able to provide an answer to the question of "What will you do in that virtual world?" For now, there are only movements to attract people by holding events such as music festivals and fashion shows.

B: That alone won't motivate people to log in on a daily basis. In the end, I think the construction of a metaverse will fail unless it has an appeal that can continuously attract people. I would like to say this to my younger self, but the idea that you can invest in anything in the metaverse is dangerous.

A: At the moment, are there any fields other than games that are expected to use the metaverse?

B: Personally, I think there are things like e-commerce (online shopping) and disaster prevention that can only be done in the metaverse.

With the e-commerce metaverse, I think it will become common to choose products by looking at 3D digital products that look just like the real thing in the metaverse, or by consulting with store clerks in the metaverse.

This is because it satisfies user needs that cannot be met on current online shopping sites.

A: If a metaverse department store were to be built, or if e-commerce sites like Amazon and Rakuten Ichiba were to become entirely metaverses, I think many people would want to try it out.

B: In fact, the use of the metaverse is quietly spreading in the field of disaster prevention. One method is to create a space in the metaverse that is just like a real city, and simulate earthquakes and floods there, or simulate traffic congestion and use the results in city design.

A: I see. It's not from an investment perspective or anything like that, but the metaverse seems promising in the sense that it will improve society.

B: Well, it might be more appropriate to think of the latter as an evolution of VR rather than a metaverse, but in any case, I think that the awareness that "the metaverse is useful" will gradually spread in this way, and beyond that we will finally see the era of a Web 3.0-style metaverse that involves NFTs and other things.

Profile

◉Mr. A

Former game writer who worked at a game company. He is interested in the Web 3.0 industry, blockchain games, and the metaverse, and is following their trends, but feels that they are not as appealing as traditional games.

◉Mr. B

An influencer who loves Web 3.0 and blockchain games. As an individual investor, he invests the same amount of money into blockchain games and metaverse-related projects as he does into cryptocurrency investments.

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