Image Credit: Getty Images
Check out the on-demand sessions from the Low-Code/No-Code Summit to learn how to successfully innovate and achieve efficiency by upskilling and scaling citizen developers. Watch now.
We can’t truly discuss building the metaverse without addressing the trillion-dollar opportunity that exists in doing so.
The internet as we know it consists of a limited number of centralized platforms that control the majority of traffic and user data. These platforms are designed around maximizing advertising revenue, which puts them in constant conflict with users, who are seen as commodities to be sold.
Of course, as we have already discussed, the metaverse has presented itself with the help of platforms like Meta — as a singular solution to the problem of scarce online space. However, while this is a great start, it is only a fraction of what is possible.
The metaverse has the potential to become a trillion dollar industry because it solves the scarcity problem in a way that no other technology has before. In this article, we will take a close look at the immense economic opportunity that exists in building the metaverse.
Intelligent Security Summit
Learn the critical role of AI & ML in cybersecurity and industry specific case studies on December 8. Register for your free pass today.
The internet today: What is the scarcity problem?
To understand the opportunity that exists in building the metaverse, it is first necessary to understand the scarcity problem. This is best explained with a simple example. Let’s say you have a product that you want to sell online. To do so, you need to find a place to list your product.
The most obvious place to list your product would be on Amazon. However, to listing requires creating an account and paying a listing fee. It might not be immediately obvious what is wrong with this process. After all, if you want to list your product on Amazon, shouldn’t you have to pay?
The problem with this system is that it creates a barrier to entry for new businesses and entrepreneurs. To list multiple products on Amazon, you need to have money.
This might not seem like a big deal, but it actually has a very negative impact on the economy. When there are barriers to entry for new businesses, it stifles innovation and entrepreneurship. This is because the only businesses that can list their products on Amazon are the ones that already have money.
This system also creates a lot of waste. Let’s say you have a product that you want to sell, but you can’t list it on Amazon because you can’t afford the listing fee. So instead you list your product on eBay. However, many potential customers don’t think to search for your product on eBay because they don’t think to look there.
As a result, your product never sells and you end up wasting a lot of time and money. This is just one example of how the current system creates waste.
The metaverse and the scarcity problem
The metaverse has the potential to solve the scarcity problem in a very fundamental way. It is a decentralized platform that is not controlled by any one company or organization.
This means that there are no barriers to entry and anyone can build anything they want. People who would otherwise have had the opportunity can benefit. This includes artists, musicians, freelancers and other creatives who can share their work with a much wider audience. This is a very different model than what we have today, where a few centralized platforms control the majority of traffic and user data.
The metaverse is also designed to be efficient. This means that there is no wasted space and everything is designed to be used. This is in stark contrast to the current internet, which is full of unused or underutilized space. Lastly, the metaverse is designed to be accessible to everyone. Anyone in the world can build something within it.
The combination of these three factors — no barriers to entry, efficiency, and accessibility — makes the metaverse the perfect solution to the scarcity problem.
The opportunity in building the metaverse is vast. The potential market size is in the trillions of dollars and the opportunities are endless. A few key reasons include:
- The metaverse solves the scarcity problem in a way that no other technology has before. This is a fundamental shift that will have a massive impact on the economy.
- The metaverse is still in its early stages of development. This means that there is a huge opportunity for early movers to get involved and build something big.
- The metaverse has the potential to become the platform for the next generation of the internet. This would be a major shift in how the internet is used and would create a whole new set of opportunities.
The current internet is used by billions of people around the world. It accounts for 3.4% of the economies of large countries that make up 70% of the world’s GDP.
The metaverse has the potential to be much bigger. It can become the platform for the next generation of the internet and it could have a global economy of $30 trillion or more. This growth will come from the new applications and experiences that are being built on top of the metaverse.
Some of the most important applications of the metaverse will be:
- E-commerce: The metaverse will enable businesses to sell products and services in a virtual environment. This will allow businesses to reach a global market and to create new types of experiences for their customers.
- Entertainment: The metaverse will provide a new platform for entertainment experiences. This could include movies, games, and other types of content that can be experienced in a virtual environment.
- Social networking: The metaverse will enable people to connect with each other in a virtual environment. This could lead to the development of new social networks and to the creation of new ways for people to interact with each other.
- Education: The metaverse will provide a new platform for education and training. This could include courses, seminars, and other types of educational content that can be experienced in a virtual environment.
This is a trillion-dollar opportunity and it is still early. Now is the time to get involved and build something big.
Daniel Saito is CEO and cofounder of StrongNode.
Welcome to the VentureBeat community!
DataDecisionMakers is where experts, including the technical people doing data work, can share data-related insights and innovation.
If you want to read about cutting-edge ideas and up-to-date information, best practices, and the future of data and data tech, join us at DataDecisionMakers.
You might even consider contributing an article of your own!
Read More From DataDecisionMakers