Building Blocks for the Metaverse: Virtual Worlds, Marketplaces, and Tools

Introduction

The term “Metaverse”, was first coined in Neal Stephenson's 1992 novel “Snow Crash” and has since been used to describe various types of virtual and augmented reality experiences. Over the course of the next two decades, the term was sparingly used, and mostly by sci-fi evangelists. But the concept once again rose to discussion in 2011 when Ernest Cline published his futuristic and best-seller novel - Ready Player One, where the protagonist goes on a search for an easter egg in a worldwide virtual reality game. The best-seller novel later led to a box-office hit movie and a popular game title.

This set the pace for the next decade where many video game companies explored what the metaverse really is. Roblox offered immersive user-generated games, and Decentraland tried creating new virtual experiences, but the term “Metaverse” gained widespread recognition when Facebook renamed itself to Meta in October 2021 and unveiled its intentions to allocate a minimum of $10 billion towards the development of this concept.

The Metaverse holds varying interpretations for different individuals. From its origins in science fiction literature to its recent rise to prominence in popular culture and the technology industry, the Metaverse has captured the imagination of many. For some, it represents a virtual arena for socializing with friends, while others perceive it as a potential commercial arena for businesses and their clients. This chapter explores the concept of metaverse and its core building blocks. The chapter has three major sections: the first deals with an understanding of the emergence and concept of Metaverse with a focus on virtual worlds, the second presents insight into the economy and commercial value generation by this new meta-era, and the third delves into the techniques and tools that enable the metaverse.