Nov 24, 2022, 10:00 AM ETOther

How will businesses use the metaverse?

The metaverse is defined as a persistent, 3D virtual plane that mirrors the real world with infinite memory and history, allowing simultaneous global interaction.
While often associated with gaming or VR headsets, the term encompasses a decentralized future internet state and parallel existence where users can perform actions impossible in the physical realm.
The concept originated in Neal Stephenson's 1992 novel Snow Crash but evolved from 1970s gaming software focused on real-time text collaboration.
Matthew Ball characterizes the metaverse for big tech as a 3D simulacra of Earth, whereas others view it as a decentralized evolution of the current web.

Industrial Light & Magic (ILM) developed "Stagecraft," an end-to-end virtual production toolkit using LED walls to display real-time computer-generated worlds directly on set.
ILM's Stagecraft technology reduces post-production workload by allowing approximately 50% of filmed shots to be used in the final show without digital touch-ups.
ILM transitioned from using Unreal Engine to developing its own real-time cinematic render engine, Helios.
The technology was first utilized for Jon Favreau's The Mandalorian to achieve movie-level visuals in a television production format.
The video game industry has driven 3D graphics maturation, growing from a $13 billion market in 1997 to $214 billion in 2021.
Graphics software has advanced to the point where it can simulate complex world rules, logic, and physics for film and television.

Facebook rebranded to "Meta" in 2022, signaling a strategic pivot toward metaverse development.
Meta invested $10 billion in metaverse-related technologies in 2021.
Microsoft acquired gaming giant Activision Blizzard for $69 billion in January 2022 to solidify its position in the emerging market.
Private equity, venture capital, and corporations invested over $120 billion in the metaverse in the first five months of 2022, more than double the 2021 total.
NVIDIA's market value surged from under $18 billion in January 2016 to over $454 billion in July 2022, with revenue growing nearly 536%.
NVIDIA is building "Earth 2," a supercomputer utilizing digital twin technology to simulate global weather and predict climate changes decades in advance.
Intel estimates that a nearly thousand-factor improvement in average computing power is required to support the metaverse at scale.

Roblox serves as a primary metaverse example, launching in 2006 with 58.5 million daily active users in July 2022 and a valuation of $25 billion.
Over 11.5 million people currently develop games for Roblox, utilizing free platform tools to create monetizable experiences.
Developers Max Entwistle and Simon Burgess earned approximately $1 million annually from their game Sharkbite, which has been played over 100 million times.
The platform's currency, Robux, facilitates real-money transactions, enabling economic activity for creators outside traditional tech hubs.
Roblox has achieved mainstream adoption among younger generations, with three out of four Americans aged 9–12 and half of 10-year-olds in Britain using the platform.
Roblox defines itself as a technology platform for creating and sharing imaginative experiences rather than a gaming company.

Lockheed Martin utilizes the "Cognitive Mission Manager" (CMM) on digital twin technology to predict wildfire behavior and optimize fire suppression strategies.
NVIDIA's Omniverse platform enables the creation of "digital twins," precise virtual replicas of physical environments used for planning and operations.
Manufacturing giants including Amazon, Siemens, and BMW use digital twins to simulate factory processes, enhancing efficiency, safety, and productivity.
Military applications of augmented reality (AR) include Microsoft's $22 billion contract to supply US troops with combat goggles capable of night vision and through-smoke imaging.
Johns Hopkins University employs AR-guided computer systems for spinal surgery, achieving a 98% accuracy rate in implant placement across approximately 100 cases.
The technology allows for training robots and performing surgical procedures in virtual environments before physical deployment.

A critical barrier to the metaverse's evolution is the lack of a universal standard for connecting disparate virtual worlds, similar to the HTML protocol for the web.
Pixar developed Universal Scene Description (USD) in 2016 as open-source software to provide a common language for describing 3D environments.
USD is currently being positioned by the industry as the potential "HTML of 3D" to facilitate interoperability and secure information sharing between virtual worlds.
The industry is currently in the early stages of establishing the hierarchies and structures required for seamless travel between virtual worlds.
Experts note that the metaverse is likely to replicate real-world pitfalls, including societal and behavioral challenges.
Predictions suggest that while specific market opportunities are difficult to forecast, the technology will inevitably drive new behaviors and unlock unforeseen markets.