Blockchain and the XR enabled immersive virtual world in 2023 | The Financial Express

Blockchain and the XR enabled immersive virtual world in 2023

It is believed that blockchain is a digital ledger or database that operates freely under the principle of decentralisation

Blockchain and the XR enabled immersive virtual world in 2023

By Kanav Singla

Ever since digitalization took center stage, new-age technologies such as AI, ML, Blockchain, and so on have come to the fore. Various new-age concepts have kicked in, and the one that has gained the maximum traction in the modern era are XR and the Metaverse.

Understanding the Metaverse

When defining Metaverse, it can be put as a 3D virtual world that emphasizes social relationships. It is the fusion of augmented and virtual reality, fuelled by NFTs and Digital Currencies. With modern-day technologies, the Metaverse enables people to experience fictitious internet avatars and engagements in other activities such as meeting people virtually, conducting business operations like trading virtual and real items, or traveling to fascinating places replicating best from the real world and human imaginations.

Revisiting the Blockchain Technology

Blockchain is a digital ledger or database that operates freely under the principle of decentralization, setting it apart from the traditional internet. Many Blockchain platforms use Cryptocurrencies and NFTs for various services, including developing, acquiring, and monetizing digital assets.

Metaverse: Scenario in 2022

2022 has been a year of digitalization, allowing new-age technologies to emerge at the forefront. The emergence of the Metaverse and its technological advancements significantly contributes to the world of digitalization. It led to masses wherein organizations using many of its aspects must be made aware that they come from the Metaverse. Hence, it is fair to state that the Metaverse is still being observed, and its adoption is poised to grow as we advance.

Incorporation and Growth

There is no denying the fact that numerous organizations are incorporating the concept of a Metaverse in their business operations. Considering nearly all businesses encountered an existential crisis due to the pandemic, more and more companies are gravitating toward the virtual world today— validating the growing interest in and for the use of the Metaverse. As per the MarketsandMarkets Report, the Metaverse global market is calculated to grow at a CAGR of 47.2%, from $61.8 Billion in 2022 to $426.9 Billion in 2027.

What Constitutes the Metaverse?

Metaverse involves aspects related to personalization, socialization, gamification, NFTs and decentralization, and community, in addition to an extension of the physical spaces and the digital identities of brands in the form of a website, social media, and their various initiatives. The aim is to simulate real-world environments and go even beyond their inherent limitations through extensive user interactions. 

Nonetheless, some have foreseen the development of an ecosystem where data, digital goods, and commodities can be easily shared and accessed via the Metaverse. Manufacturing facilities and equipment may have distinct digital identities that replicate their states and functionality in the real world by combining Extended Reality (XR) with Blockchain. Customers and stakeholders could use these virtual entities to collaborate on enhancing production efficiency and developing new products.

The Merge: Blockchain and Metaverse

With the introduction of WEB3.0, Blockchain strongly emphasizes the transparency of data management. Alongside a decentralized authority, it enables simple and trustworthy data transactions. According to the experts, developing a safe and fair metaverse would depend heavily on blockchain technology. Moreover, the ability of artists to sell their creations and be fairly compensated for their work defines the new Metaverse economy that the Blockchain is helping to create.

Additionally, NFTs appear as the fascinating component of the Metaverse as they let users sell a variety of elements such as data, services, and experiences that generates revenue for the creator community. With the decentralized internet, Blockchain strongly emphasizes the transparency of data management, authorizing simple and trustworthy data exchanges.

Metaverse: The next big thing of 2023

The idea of the Metaverse has recently gained broader traction in the world of technology. It integrates immersive technologies to produce an interactive experience with advanced VR and AR collaboration.

For the year 2023, there are several trends that we can anticipate as technology develops and gets widely used, including a rise in the use of digital avatars, deeper integration with the real world, the emergence of virtual influencers, the growth of virtual reality therapy, the expansion of virtual and augmented reality gaming, developments in hybrid reality, and the emergence of virtual education and training.

In another report by Research and Markets, the Metaverse in the e-commerce industry is expected to grow by $85 Billion in 2022-2027, with a CAGR of 39.65%.

Understanding the Blockchain Network

Blockchain networks are decentralized databases that keep track of all network transactions. It implies that each time you purchase or transfer a digital asset, the transaction is visible to everyone and is recorded on the Blockchain. As a result of the development of blockchain technology and the corresponding Web 3.0, it is now feasible to own digital assets in the same manner we own our physical assets.

One of the critical merits of Blockchain Technology is its transparency, which empowers numerous systems (and virtual worlds) to communicate with the same decentralized database without claiming ownership. It means that once a digital item has been moved to a new account, no one can take it back or otherwise claim ownership, and the network would promptly catch any efforts made in that direction.

Final Takeaway

From $63 billion in 2021 to over $100 billion in 2022, the anticipated size of the global metaverse market has increased, and more is on the way to 2023. This is a remarkable accomplishment, especially in light of all the doom and gloom. Additionally, the Metaverse’s value may exceed $1 trillion by 2030.

We only know that those who go first will benefit as long as they can create a community and give people a reason to return. And if their communities can generate revenue and expand the platform’s economy by aiding in the creation of the virtual world, the latter may come to life and develop naturally, adapted to the requirements and preferences of its members.

The author is founder and CEO,

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First published on: 27-01-2023 at 08:00 IST