As the Internet enters a new era, the concept of the metaverse is gaining traction among crypto projects and public companies. While some companies have embraced the metaverse early on, others have been hesitant despite the clear alignment of their technology. These companies typically specialize in immersive hardware, 3D technology, interactive platforms, connectivity, blockchain, semiconductors, and security – all crucial elements for realizing the metaverse's potential.
The metaverse is poised to disrupt existing market structures and emerge as a significant technological trend. Building the metaverse will open up opportunities for various entities, including new projects, public companies, and individual investors, to actively participate in the next phase of the Internet's evolution.
Reasons for Investing in the Metaverse
The metaverse has rapidly gained popularity, and Facebook's rebranding to Meta has solidified its significance. Major companies are now acknowledging the metaverse as the next evolution of the Internet. The Internet has evolved through Web1, Web2, and is now anticipating Web3, which could bring the metaverse to life.
Web3 aims to offer open, connected, and intelligent websites and applications that empower users with greater control over their data. Technologies like blockchain, cryptocurrency, virtual reality (VR), augmented reality (AR), and artificial intelligence (AI) play crucial roles in Web3's development. These technologies enable decentralization, digital economies, enhanced social interactions, and improved language processing. The metaverse offers opportunities for new projects to address current Internet challenges, for companies to contribute their expertise, and for individual investors to engage through metaverse-related investments.
Large Companies Interested in the Metaverse
Publicly traded companies like Microsoft, Google, and Epic Games are actively exploring the metaverse to meet their specific needs. Microsoft focuses on virtual office spaces, while Google develops AR solutions bridging the digital and physical worlds. Epic Games plans to integrate AR, VR, and 3D content into its platforms. These advancements offer users insight into the companies' objectives, and investing in their stocks allows users to contribute to the progress of the metaverse ecosystem.
Failure to adapt to technological advancements puts businesses at risk of losing their competitive edge. Emerging as the next significant long-term trend, the metaverse has garnered growing interest from companies. Involvement in the metaverse is seen as crucial for future growth and development. This recognition stems from the historical significance of secular trends like personal computers, mobile devices, and e-commerce. Public companies are actively exploring various avenues, including immersive hardware, 3D creation software, interactive platforms, connectivity solutions, blockchain technology, semiconductors, and security measures, to enter and support the metaverse.
Publicly traded companies are venturing into the metaverse with distinct focuses, such as virtual office spaces and AR solutions. Investing in these companies allows users to play a role in advancing the metaverse ecosystem. Embracing the metaverse is critical to maintaining a competitive advantage amidst technological advancements. Recognized as a significant long-term trend, the metaverse appeals to companies seeking future growth. They are exploring diverse avenues to enter and support the metaverse, ranging from immersive hardware to security measures.
Layers of Metaverse Investment
To support the development and functionality of the metaverse, several key components are essential:
- Immersive Hardware: While current consumer products primarily focus on sight and sound, immersive hardware could bring the sense of touch to the metaverse. Haptic devices, for example, have the potential to establish a physical connection with the virtual world.
- 3D Creation Software: Building digital environments that closely resemble the real world can be challenging and time-consuming. However, the use of 3D cameras and specialized software can simplify this process. By capturing natural environments and converting them into 3D spatial data, developers can create a virtual foundation upon which users can build in the metaverse.
- Interactive Platforms: Just as online shopping thrives on interactive tools, the metaverse requires native interactive platforms to facilitate user engagement. These platforms will enable users to interact seamlessly, driving activity and enhancing the metaverse experience.
- Connectivity: Fast and reliable connectivity is crucial for real-time interactions within the metaverse. Users need high-speed internet and powerful computers capable of rendering 3D content to ensure smooth and uninterrupted experiences.
- Blockchain: Blockchain technology can serve as a foundational layer for the metaverse, offering decentralized and transparent solutions for digital ownership, collectibles, and governance. It promotes accessibility, and interoperability, and facilitates transactions using cryptocurrencies. Non-fungible tokens (NFTs) and decentralized finance (DeFi) are additional blockchain applications relevant to the metaverse.
- Semiconductors: As the metaverse demands higher computing power, advancements in semiconductor technology are necessary to meet these requirements. Improved semiconductors will enable efficient data processing and storage within the metaverse.
- Security: Given the vast amount of user data collected in the metaverse, robust cybersecurity solutions are imperative. Protecting identities, finances, and sensitive information from unauthorized access will be crucial to ensure user trust and safety.
Companies Investing in the Metaverse
As the leading provider of 3D software, Unity Software plays a pivotal role in the creation of 3D content, with its technology being used in half of all 3D content produced today. Given its expertise in this area, it is natural to expect that Unity Software would have a significant role in the development of metaverse content.
Shopify, a prominent e-commerce platform, serves as a vital tool for online retailers, offering support for payments, analytics, and order fulfillment. Given its existing software products, Shopify has the capability to influence commercial activities within the metaverse. As evidence of its metaverse involvement, Shopify has developed a beta version of an NFT platform, enabling the sale of non-fungible tokens through its storefront. Additionally, it provides a token-gated commerce platform that allows its clients to engage with fans and boost sales.
Meta Platforms Inc.
Meta, formerly known as Facebook, has made substantial investments, totaling billions of dollars, in the development of metaverse content, software, and AR and VR headsets.
Match Group Inc.
Match Group, the parent company of well-known dating apps such as Tinder and Hinge, expanded its capabilities by acquiring Hyperconnect, a leading South Korean company specializing in social discovery and video technology. This acquisition, which took place in 2021, aims to establish innovative digital platforms that enable individuals to connect and interact with new people across borders and overcome language barriers.
In addressing the cybersecurity demands of the metaverse, CrowdStrike Holdings emerges as a key player. As a leading cybersecurity technology company, CrowdStrike offers cloud-based protection that effectively thwarts breaches. With its robust expertise and solutions, CrowdStrike is poised to meet the critical cybersecurity needs of the metaverse.
The concept of the metaverse has become a prominent subject in the technology industry, prompting significant investments from various companies, despite its current non-existence. With the potential of Web3 to decentralize power from established Web2 giants and empower individuals, it is likely to attract investments from new projects, public companies, and individual investors who recognize the importance of supporting its foundational infrastructure.