READ: 4 Minutes
When someone mentions the metaverse, the concept almost always brings confusion and fear, but no one can deny that it’s a fascinating subject. Nebulous as it still is, many people see the metaverse as the next big thing, but how does it apply to everyday life?
By future estimates, the metaverse represents a massive opportunity for any business, no matter the size. But how does a company operate inside this new space?
Metaverse Projects on the Rise
The metaverse is a network of virtual worlds on the internet. They make use of Virtual or Augmented Reality, creating a place with land, society, and economy of its own. After creating a virtual identity, users can socialize, trade with cryptocurrencies, and do many things as in real life.
The newest metaverses rely on blockchains like Ethereum that allow users to own, create and monetize content securely. The most popular are Decentraland, The Sandbox, and NFT Worlds, with many others coming up.
Metaverse Projects on the Rise
There are several metaverse projects in development, all focused on delivering the best experience for as many users as possible. Star Atlas, Ertha, and Metacity are only a few of these promising projects.
While virtual worlds have existed for years, only now have big businesses taken the concept seriously and started developing their platforms.
Innovations in the Space
The most important innovation brought by the newest metaverse projects is their reliance on blockchains. They allow transactions of goods without depending on central authorities, all while providing a secure way of proving ownership.
In this line, tokenization has allowed users to buy virtual lands in these internet worlds, which no one can take from them as they exist as NFTs in the blockchain.
Latest Scams
Phishing scams have been going on for a while, and cybercriminals are using them to steal virtual goods —such as land— from small investors. Robbers create websites posing as the login pages to the metaverses, using them to steal user credentials.
In addition, there have been warnings of potential scams made by fraudsters raising funds in the name of another or a non-existent project. These scams are likely to become a norm, so you should take precautions when considering an investment.
Market Outlook
Depending on the source, by 2024, the metaverse is expected to become a market of between $400 to $800 billion. More and more companies are pouring capital and resources into new virtual worlds or buying space inside them.
Despite risks, metaverse-related companies have raised billions to fund their projects. And the opportunities don’t stop there. As in the real world, advertising and marketing will represent a considerable part of the metaverse value by 2030, expected to be in the trillions.
Conclusion
Though it’s still in its infancy, the metaverse is expected to become the next step of the Internet. Talk of virtual worlds will be commonplace within a few years, and you shouldn’t underestimate their potential value.
Investing in new or existing metaverse projects is a sound idea, but it doesn’t come without risks. If you have any questions related to this or getting insurance on your move, please contact an IMA Select representative in your area.
At IMA select, our mission is to change the way people think and feel about insurance. If you have any questions on more information on getting insurance, please contact an IMA Select representative in your area.
Have questions? Want to know more?
Reach out! At IMA, we’re here to help safeguard your future!