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What Is the Metaverse?

The Metaverse is a virtual world independent of the physical one that offers a seemingly unlimited array of social, leisure and business activities. It is supported by a digital economy that includes virtual currency and non-fungible tokens (NFTs).

The metaverse was popularized in the 1992 cyberpunk novel Snow Crash by Neal Stephenson. The book described a shared digital universe that people accessed with virtual reality goggles connected to a shared fiber optic network. The universe contained everything from mundane parks and buildings to fantastical, wildly whimsical spaces that defied the laws of physics.

Gamers are pioneering the metaverse, with online multiplayer games like Roblox, Minecraft and Doom 3D allowing players to interact in virtual worlds. The fusion of NFTs and immersive gameplay provides new opportunities for monetization, socialization and personalization.

In the business world, analysts say that it could take years for the full potential of the metaverse to be realized, but companies are preparing for it. Investment firm BlackRock recently established an exchange-traded fund (ETF) that focuses on a wide range of technology companies seen as linked to the metaverse concept, including chip makers Nvidia and Qualcomm, 3D simulation software maker Dassault Systemes and game developers Activision Blizzard and Ubisoft.

There’s no one definition of the metaverse, but most experts see it as a broad virtual-world platform that connects to the real world and incorporates elements of augmented reality, virtual reality and artificial intelligence. It also can include blockchain, which allows users to store and transact with digital goods and services.

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