Is the Metaverse dead? An in-depth analysis

The concept of the metaverse has been around for a while, but it has recently exploded thanks to major promotion from tech companies like Meta, who have framed it as the next evolution.

It is a concept that describes a virtual reality where people can interact with each other and with digital content across different platforms and devices.

The idea is that people will be able to live and work in online worlds that are persistent and interconnected.

However, despite this hype and investment from different big tech companies, the metaverse has also faced many challenges and problems as many of the projects and initiatives that have tried to create and explore it have failed to take off. not meet expectations.

This begs the question: Is the metaverse dead, or will it rise again?

Let’s dive into this article and uncover the misery behind the rise and fall of Metaverse.

The term “metaverse” first appeared in the 1992 novel Snow Crash by Neal Stephenson. In the novel, it was referred to as a massive online simulation accessed by millions of users through virtual reality headsets.

This novel inspired many visionaries and developers to imagine and create their version of the metaverse. Some of these include Second Life, World of Warcraft, Minecraft and Fortnite.

On these platforms, users can create custom avatars, build virtual places, socialize with others, and even participate in a variety of activities and events.

The metaverse became very popular in the mid-2020s for several reasons that will be discussed.

The COVID-19 pandemic era has led to major lockdowns and high demand for online and virtual platforms as people seek new ways to connect, entertain and work from home. The advancement and accessibility of virtual reality and augmented reality devices, such as Oculus Quest, Microsoft HoloLens and Apple Glass, have improved the quality of the metaverse experience, making it more realistic and immersive. The rise of blockchain and cryptocurrency integrations, such as Ethereum, NFTs and DAOs, have enabled people to own digital assets and make real money in the virtual world. The endorsement of major companies and celebrities, such as Facebook, Google, Nike, Adidas, Lady Gaga, Travis Scott, and others, has raised awareness as they have also launched and promoted their virtual content.

But even with all this hype, the metaverse concept did not take off as much as expected due to the failure to face various challenges and limitations that hindered its adoption and development.

Some of the most prominent metaverse projects to emerge in recent years include Decentraland, Sandbox, and Axie Infinity.

Within just a short period of time, the projects attracted millions of users and investors who were excited by the idea as an opportunity to participate in a new and innovative form of entertainment and build an economy.

However, these projects also faced many problems and issues which ultimately led to their decline and demise.

Decentralized

Launched in 2017 and designed to enable users to build their digital world, Decentraland has raised over $20 million in its initial coin offering (ICO).

The project faced several technical and operational problems, such as slow development, high fees, low user engagement, and limited functionality and content.

In addition, the company has been criticized for its impact on the environment, as blockchain technology is claimed to consume a lot of energy and resources.

The Sandbox

The Sandbox began to decline after experiencing challenges similar to those of Decentraland. The project is said to have a very high cost and low acceptance. Its token (SAND) lost 6.7% in the last 24 hours, according to Coingecko.

Moreover, it uses voxel graphics, which does not provide the most realistic experience that people expect. People still wonder how this project could lose its legacy even after the heavy involvement of celebrities like Snoop Dogg aka Cozomo de’ Medici.

Also Read: Snoop Dogg To Launch Snoop Avatars NFTs In The Sandbox

Axie Infinity

Launched in 2028, Axie Infinity has become one of the most successful and popular metaverse projects ever created, with over 2 million daily active users and over $2 billion in revenue as of October 2021.

However, it soon faced several issues and risks as it suffered from regulatory issues and security breaches.

To top it off, the company has been criticized for its addictive nature as users tend to spend an inordinate amount of time and money on the game.

A major problem with current metaverse experiences is that the technology remains limited.

Beyond individual project struggles, users have pointed to larger issues that have hindered mainstream metaverse adoption thus far. Some of these include remaining technical limitations around virtual reality headsets and blockchain scalability.

In addition, cultural and educational barriers mean that much of the wider public still needs to understand and see value in virtual worlds. The high investment costs for companies combined with unproven business models also present a challenge.

Most metaverse platforms have struggled to support sustainable economic growth for developers and users over the long term.

Furthermore, VR headsets are often reported to be bulky, heat up with prolonged use, and cannot perfectly replicate reality.

While virtual worlds hold entertainment potential as an extension of games and social networks, the original far-reaching vision of the metaverse as a substitute for real life remains far-fetched.

Despite recent setbacks, investments by major companies suggest that the metaverse concept may still gain traction. For example, social media giant Meta (formerly Facebook) renamed their entire company to indicate their commitment to leading metaverse development. Microsoft also unveiled ambitious plans for collaborative mixed reality experiences via its “Mesh” platform.

Both companies are funding research into overcoming key technical limitations in areas such as VR/AR hardware, cloud infrastructure and computing, to reach a tipping point where high-quality experiences attract consumers, which in turn attract more developers, fueling further growth.

In addition, this year Apple also announced its first headset for its metaverse, called the “Reality One” or “Reality Pro”. The headset is expected to be a high-end mixed-reality device that will offer both VR and AR functionality.

Rather than just one coherent metaverse, these current trends point to a collection of interconnected virtual worlds created by different platforms.

While increased investment now focuses more on enterprise use cases, niche gaming communities on platforms like Fortnite and Roblox show that deeply engaged user bases are possible when metaverse experiences resonate.

Also read: The potential and possibilities of Metaverse in the coming years

Closure

The metaverse remains more of a theoretical concept than a practical reality. However, decades of experimentation and failure are typical of new technological paradigms before maturity is reached.

Despite ongoing challenges, heavy investments from major tech giants indicate that industry leaders believe that usable metaverse experiences can still become a ubiquitous part of how people interact online.

The question remains whether enough key innovations across areas such as hardware, AI, blockchain and business models will emerge to make this a reality.