What Is Metaverse And How Will It Influence The Economy And Job Market?
January 8th, 2022
Last Updated on January 8th, 2022
This text was fully written by humans.
SUMMARY / KEY TAKEAWAYS
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The topic of Metaverse is hot today. But what is Metaverse — a concept that Russell Brand called “the colonization of consciousness” — exactly?
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In this article, we introduce the two biggest myths about Metaverse. Its impact on society might be different from what you think!
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We also list a number of industries that Metaverse will most likely affect. For readers who want a broader lens on where this is heading, future of work research and insights on virtual economies can help contextualize the trend. Analysts increasingly publish future of work research and insights that track how immersive technologies reshape entire job categories.
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Lastly, we speculate on the possible future influence of Metaverse on labor and the job market.
The Recent Buzz Around Metaverse: How Will It Influence The Economy?
In the past few months, the concept of Metaverse came to the spotlight as the next stage of the evolution of the world wide web. Especially After the CEO of Facebook, the (in)famous Mark Zuckerberg announced the change in Facebook’s core business model.
He subsequently rebranded the company to Meta, then and revealed the plan of becoming the to-go-to Metaverse platform, the amount of interest in Metaverse skyrocketed, both on the media and beyond. To such an extent that the first couple, Dave (60) and Traci (52) based in Florida got married in Metaverse on December 14th.
But, what is Metaverse? Is what Russell Brand once called “the colonization of consciousness” even good for humanity?
Or rather, is it a shameless heist aiming to capture and enslave our minds?
How can it affect the economy and the job market of the future?
How can it affect your professional development and your career path?
Is this a game changer, or perhaps, is it yet another buzzword that will result in a wave of speculative projects resembling the dot-com bubble from two decades ago?
What Is Metaverse?
According to Wikipedia, Metaverse is “a network of 3D virtual worlds focused on social connection.” Or in other words, a digital universe that you can inhabit and explore with others. It is created and owned by its inhabitants. Emerging platforms like this are a clear example of AI and the changing nature of careers, as entirely new professional roles form around virtual environments. Observers who study AI and the changing nature of careers point to virtual-world design and moderation as early examples.
Well, in fact, it is much more than that. Namely, it is a network of virtual worlds that you can explore for just any purpose, from looking for social connection, through traveling, to exploring a remote property before making the decision to purchase or lease it.
Imagine if you had an identity that was entirely digital, start to finish — you could have a job that didn’t require your physical presence at any fixed location, an education that doesn’t require sitting in a classroom for years on end. And, assets that exist purely as bits. That’s what Metaverse is all about — and we’re getting there.
It was first conceived in the 1990s, but the technology wasn’t there yet to make it happen. Now, thanks to blockchain technology, augmented reality, and virtual reality the Metaverse is finally possible.
Metaverse is a digital space, similar to the real world. This kind of rapid technological shift is part of a broader conversation about AI and the evolving skills gap across many industries. Employers report AI and the evolving skills gap as one of the biggest hurdles to staffing emerging tech roles. You can find more information about the history and branches of the Metaverse industry in the book “The Metaverse: Get Ready for the New Virtual World – Learn How to Make Money with NFTs, Crypto Arts, Cryptocurrencies, Tokens, Virtual Lands and Real Estate while Metaverse Revolutionizes Everything”.
Metaverse is commonly associated with web3, the next stage of the development of Internet, which assumes democratization and decentralization of our online activity.
So, what is Metaverse’s market potential, and how much of a revolution it really is? In this article, we would like to first debunk some myths that arose around Metaverse and then talk about its viable scope of applications.
What Are the Two Myths About Metaverse?
Myth #1: Is Metaverse Really a New Concept?
Actually, this is not true. Metaverse is, conceptually, nothing else than making the gaming industry more life-like than it used to be up to this point. Plus, using technological advancements from the past few years to decentralize this industry.
In traditional gaming, digital worlds have been created with ease ever since The Unreal Engine debuted back in 1998. This powerful software for gaming developers by Epic Games allows for creating new online universes from scratch. The change that the Metaverse movement brought, was the scope of applications of this technology that now goes beyond just gaming.
What is more innovative about the technology, is the progressive decentralization that goes along with it. Traditionally, online communities were hosted on centralized platforms run by the gaming giants such as Blizzard Entertainment, Nintendo, or Epic Games.
Now in 2022, Metaverse projects promise to develop online worlds fully hosted, curated. And, managed by their users in a decentralized manner, for instance with the use of blockchain technology. This allows for better private property- and personal data protection. In that sense, Metaverse brings a new business model to traditional gaming using a new methodology. It’s a useful case study in how AI is reshaping tech hiring, since studios now need talent that blends creative and technical skills. Recruiters increasingly describe how AI is reshaping tech hiring across the gaming and immersive-technology sectors.
Myth #2: Will Metaverse Fundamentally Change the Way We Interact With Each Other?
Will Metaverse bring a new quality to interpersonal relations? That’s one of the most commonly mentioned premises behind Metaverse after all, including the recent keynote talk by Mark Zuckerberg.
Well, most likely not! Most probably, our contacts via Facebook or Zoom will get upgraded so that we can meet in 3D online rooms such as spatial.io meeting rooms where you can cast a meeting in a beautiful 3D surrounding of your choice. However, is this a qualitative, or only quantitative change?
When digital cameras replaced analogue cameras, was it groundbreaking for photography? Or, when 3D movies were introduced instead of 2D movies, did it change the cinema?
Not really, because the beauty and the value of cinema are in its content, from the screenplay to the actors’ performance. And the carrier doesn’t determine the overall experience.
Now, most likely, we will meet in 3D instead of 2D. Nothing will change in the terms of the dynamics between people or their work motivation. The boring conversations will stay boring. Likewise, the interesting conversations will stay interesting. And the important relations will stay important. Having online 3D experiences together won’t change the game.
However… Metaverse Will Change The Industry!
If Metaverse is not new and it won’t change much in our social interpersonal relations, how is it going to impact the world? Well, it will contribute to the growth of the economy in many ways! Let’s mention just a few paths of development below.
1. Fashion Industry.
Brands are entering the space in large amounts. Clothing brands now launch their own NFT collections that can be worn in the Metaverse. Burberry recently dropped an NFT collection in the multiplayer blockchain game Blankos Block Party.
Dolce & Gabbana presented their latest “Collezione Genesi” FW2021 collection for Metaverse in September 2021. Adidas has just released an NFT collection in collaboration with the giants of the NFT industry, Bored Ape Yacht Club, on Opensea.
The fashion industry is worth 3 trillion dollars, and the metaverse industry – 500 billion as of 2020. No wonder the sweet spot on the edge of the two attracts thousands of game- and fashion- designers.
According to McKinsey & Company, the metaverse could generate an estimated $4 trillion to $5 trillion in economic value by 2030, with e-commerce, virtual learning, advertising, and gaming among the largest contributing sectors (mckinsey.com).
We can soon expect all the major clothing brands to release collections that your digital identity can wear online. It will also help you try the clothing on and make your purchase without moving out of your home.
2. Entertainment Industry.
Metaverse allows for creating brand new experiences that were out of reach before. For instance, with the use of a headset and a few movement sensors you can create an impression of attending a live event such as a live concert.
Today, companies such as Beemup create hardware and software that allow you to fully immerse yourself in such events and feel like you were attending a live stage. Some superstars of pop music have already cast their fully 3D online concerts! For instance, Justin Bieber’s Interactive Virtual Experience originally aired on Nov 18, 2021.
3. Art Industry.
Metaverse has close ties with digit art, revolutionized due to blockchain technology and the concept of non-fungible tokens (NFTs, also described in the article “What Are Non-Fungible Tokens and What Do They Tell Us About The Today’s Job Market?“). Metaverse allows for better display and uses of digital art, hence, it leverages the value of non-fungible tokens.
4. Recruitment Industry.
More companies now decide to create 3D mockups of their offices, which are then used in recruitment. So the job market organization will change significantly.
This greatly helps job candidates in gaining a feel for the vibe in the office and get familiar with the associated facilities. It also illustrates some of the emerging career opportunities in artificial intelligence tied to building and maintaining these virtual environments. Job seekers exploring career opportunities in artificial intelligence increasingly consider immersive and spatial computing roles as part of that landscape. In the near future, commuting to the job interview will no longer be necessary.
5. The Real Estate Market & Interior Design.
Metaverse makes it possible to visit and explore properties without commuting or meeting the estate agents in person. This will open boundaries and make it much easier for thousands of private and corporate real estate investors to purchase properties all around the world.
Additionally, tokenization of securities, for example, via platforms such as Digishares, makes real estate more affordable as an investment. Overall, the real estate market will change forever. In this new world, you will be able to build a portfolio of (rental) properties all around the world from the comfort of your own home, with as little as 100$ in your pocket.
Similarly, the Interior Design business will change forever. Now, instead of looking at 3D mockups of your future home on the screen of your laptop, you will be able to fully immerse yourself in your future home. And, experience living there before you make your final decisions.
6. Travel Industry.
Does it often happen to you that after booking an exotic trip you feel disappointed about what you see on the site? Well, this question might sound ironic now in 2022, but we all recognize this kind of situation!
Now in times of Metaverse, you won’t need to guess how the location looks when not featured on the cover photo of the magazine. You will be able to make a trial visit and walk around a 3D mockup of the area in Metaverse, freely explore. And, make your decision before you book a flight ticket. And who knows, perhaps this experience will even replace your need to travel.
This is also a chance for disabled and ill people to get familiar with distant, touristic locations such as Manhattan or Machu Picchu and experience traveling without asking about their health.
What Is the Probable Impact of Metaverse on the Job Market?
Of course, Metaverse will have an impact on the economy. Metaverse is supposed to be a virtual world as compelling as the real one. The first step is to digitize the economy, which will give rise to an abundance of new jobs.
These jobs will span from building digital assets to design and engineering. Users will be able to create and develop in-world facilities, like offices, factories, and malls.
According to the World Economic Forum, the metaverse is expected to create demand for entirely new professions, such as construct architects, ecosystem developers, and metaverse designers or operators, alongside its impact on recruitment and staff training (weforum.org).
This will give rise to a variety of new positions, especially in high-tech spaces. Several recent reports frame this shift as part of a broader AI industry job market outlook worth watching closely. Anyone tracking the AI industry job market outlook should keep an eye on how virtual-world roles evolve over the next few years. The next wave of jobs will be in virtual and augmented reality. So, as a consequence, the job market will change,
Furthermore, Metaverse will contribute to the further expansion of gaming and luxurious brands such as haute couture fashion brands and branded car companies. Furthermore, the reduced necessity to travel will allow to massively optimize costs spent on flights and transport.
Lastly, many professions will find themselves in jeopardy. In principle, some intermediaries such as real estate agents might become obsolete as the real estate properties might be traded on decentralized platforms. This will have an impact on the job market obviously.
To learn more about new incoming Metaverse trends, please check our article “3 New Metaverse Trends.”
What Are the Controversies Around Metaverse?
Of course, Metaverse also has its opponents. In a world where everything can be experienced with almost the same intensity as real life, marketing and political/religious propaganda can become even more intrusive and persuasive, especially when it is governed by centralized companies such as Facebook.
This is why one needs to care about ethical standards in this new world — which is a topic that multiple budding Metaverse projects, Your Open Metaverse community, are now tackling.
How is the Metaverse going to pan out. And, is this going to become the Brave New World where everyone can feel equally welcome and entertained? This is what we are about to see in the near future!
Meanwhile, it is worth following new developments in this department. For instance, you could utilize new, AI-powered solutions that will allow you to keep in touch with the developments in your field. Namely, tools such as Deeep can provide you web-based news feed in your discipline of interest curated using AI.
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Ontology of Value (January 8th, 2022). What Is Metaverse And How Will It Influence The Economy? Retrieved from: https://ontologyofvalue.com/what-is-metaverse-and-how-will-it-influence-the-economy/
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