Metaverse Business Models

We have been reading all sorts of reports around Metaverses and the numbenumberr of times that Big Tech Executives have been using this term in their annual reports and investor presentation and public appearances has gone through the roof. This is about time we did a piece around the monetization of the same and the various business models and investment theses involved here.

Before we dive deep into this rabbit hole (literally) it is imperative to understand basics about the IOT, AR, VR, MR and other terms that are building blocks of any Metaverse (yes, there are many) and we will not focus on explaining these terms here. It is highly advisable to go through the building blocks first before moving on!

What is the Metaverse?

Metaverse is similar to a still from Sci-fi movie which is based in some distant future and has people porting themselves from 1 place to another and doing things that we typically would have done in person!

In reality, this is a symbolic representation of the virtual presence of a physical object/being. This is a collective “world” of all things digital or physical being omnipresent i.e. virtually everywhere.

Today’s internet (web2) is in the hands of the user, tomorrow’s internet will be the one that the user is inside of i.e. the Metaverse. The user is interoperable across the metaverse i.e. the user does not require multiple sign ons (identifiers) to access various virtual spaces inside that metaverse.

Summing it up: Metaverse is a collection of all spaces where the user lives i.e. in today terms it is a combination of:

• all social networks the user is on
• all commerce platforms the user has bought from
• all virtual collaboration tools that the user has used to work, study etc.
• all virtual entertainment services that the user has spent TIME (why caps, it’s elaborated towards the end of the article just below the Investment Thesis)
• all virtual payment modes that the user has ever used to make a virtual purchase
• all assets that user holds ++
• & all of the above in their physical forms and so on…..

Components of a Metaverse

Like the current universe that we live in is made up of galaxies, worlds (Planets) stars etc. Metaverses are made of components as below: Metaverse Business Models, Economics & Investment Thesis (unicornomy.com)