Insights

Understanding the Metaverse

The Metaverse, a virtual world created by combining different technologies, including virtual real estate and Augmented Reality (AR), is one of the hottest buzzwords of 2022. The Metaverse merger of both virtual and physical worlds has entered our lives like a meteor, and to remain competitive, brands must grasp and embrace this new world as our way of life is poised to experience a monumental paradigm shift.

It is expected that the Metaverse will redefine what it means to spend time in a virtual space and extend our capabilities beyond what is possible in the physical world. One of the most uniqure aspects of the Metaverse is that its constantly expanding, growing, and finding its own place. Currently, people understand the Metaverse as “a collective virtual shared space, created by the convergence of virtually enhanced physical reality and physically persistent virtual space, including the sum of all virtual worlds, augmented reality, and the Internet.”

This “extended reality” blurs the lines between physical and digital and is spreading worldwide, bringing excitement, cocktail party conversation, and many unanswered questions. Companies expect that the Metaverse will become a place where people go to meet, work, play, purchase real estate, and shop.

This convergence of physical and digital worlds wouldn’t be possible without rapid advancements in 3D, Augmented Reality (AR), and Virtual Reality (VR). As with other forms of online interactions, the Metaverse is at its core, place where people can meet, and digital assets—land, malls, offices, products, and avatars—can be created, bought, and sold.

For some, the Metaverse is becoming another source of income. The “creator economy” is growing, and these new play-to-earn, create-to-earn, and learn-to-earn models are turning fun activities into work.

Creators and artists mint digital assets such as photographs, videos, music, and art on non-fungible tokens (NFTs). An NFT authenticates a person’s possession of a digital asset, meaning you can’t copy the deed of ownership. This move creates scarcity and builds desirability into digital items, which we haven’t seen before.

The Metaverse’s future will be interesting to see unfold. We have more questions than answers on what it will ultimately become, but we can be sure that the first vision of the Metaverse will not be the last.

AUTHOR(S):
POSTED:

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome.