What is the Metaverse and why is it important for entrepreneurs?

In recent years, you've probably heard of something called the "metaverse", along with a host of inaccurate descriptors such as "this will be the next internet" or "this will revolutionize e-commerce ". In truth, the Metaverse is both more and less than many commentators say it is.

So what is the metaverse? What does this mean and why is it so important? Specifically, why is it important for small businesses and entrepreneurs? Read on for answers to these questions and more.

So what is the metaverse?

The metaverse is the interconnected digital world, enabled by virtual reality, which persists thanks to the Internet and cloud technology. Think of it the same way you think of the internet.

Related: Prepare for Impact: It's Time to Usher in the Metaverse

When you create an account on Google, you can take it with you to many other websites, such as YouTube, Facebook, and Instagram. Similarly, you can create an avatar on the metaverse, which you can take with you when visiting different domains, platforms or worlds connected to the metaverse network.

You can, for example:

Create a metaverse avatar for business purposes. Take this metaverse avatar to an all-digital workplace meeting so people around the world can collaborate. Take this metaverse avatar to a game where you play with your friends. Take this metaverse avatar to a digital store to buy digital items for your avatar, like new clothes.

In many ways, the Metaverse is intrinsically tied to Web 3.0: the next "iteration" or version of the Internet. Web 3.0 focuses more on the persistence of user identity across different domains and websites and incorporates more virtual reality and augmented reality technologies, further blurring the line between the online world and the real world.

People often confuse the terms web 3.0 and metaverse; however, they are fundamentally different. Many metaverse platforms are now accessible with Web 3.0 technologies and are integrating decentralized finance (DeFi) into their economies in the form of cryptocurrencies and NFTs.

Web 3.0 is based on the idea of ​​decentralized control and ownership over the Internet. The metaverse is not about ownership of the technology, but rather about creating a shared digital reality.

Related: The New Wave of Web 3.0 Metaverse Innovations

The metaverse as it stands today is partly theoretical and partly accessible: you can, for example, buy a VR headset, create an avatar, and dive into a virtual reality world right now.

However, the metaverse is not yet fully interconnected, and its different platforms or domains are still largely isolated. That said, the metaverse is well on its way to reaching its eventual potential.

How does the metaverse work?

The Metaverse works by combining new hardware technology, such as fully immersive VR headsets that are cheap enough to be commercially available to ordinary people, and cloud technology and improved servers.

In a nutshell, the metaverse is a linked series of digital worlds or realms that people can access using the same user ID. Because the metaverse is powered by VR technology, your user ID is connected to a 100% unique digital avatar.

Related: Why Your Business Needs to Prepare for the Metaverse

What is the history of VR and AR technology?

The first examples of VR and AR technology were...