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Facebook Invests $1 Billion Into the Metaverse
The term “metaverse” was first used by novelist Neal Stephenson in 1992 to describe 3D virtual worlds. Since then, the concept has grown, with virtual reality, augmented reality, and cryptocurrency all being part of its evolution. Virtual reality was first introduced in the book Ready Player One by Ernest Cline, which went on to become a popular movie. In 2014, Facebook acquired virtual reality platform and hardware maker Oculus.
The Metaverse is a virtual space that connects people with technology and each other. Users will have avatars that interact with one another and interact with the world. The metaverse uses virtual-reality headsets to connect people, and it must be “decentralized” to be effective. Blockchain technology, for example, has been used to create networks with no central authority. Other metaverses, like The Sandbox, have implemented crypto technology by encrypting transactions to create a permanent storage of ownership rights.
Blockchain-based applications such as Enjin and Decentraland are also aimed at creating the metaverse. However, these have all fallen in price from recent highs, and it’s unclear if these will ever become mainstream. In the meantime, video game developers are leading the way and creating content. The creator of Fortnite, Epic Games, has raised $1 billion and invested in Metaverse, a platform that enables users to create 3D experiences.
Despite the hype, the company’s investment in the metaverse is a huge concern for many people. While Meta has already renamed its social network Meta, Instagram, and WhatsApp, Facebook’s co-founder has hinted that Web3 is being controlled by Andreessen Horowitz, a prominent investor and advocate of Web3 technology. The VC community is not sure that Meta will be able to survive its transition, but the open metaverse is likely to dominate the market. This is similar to the emergence of competing standards in the personal computer industry, which ultimately led to the introduction of the IBM PC.