Metaverse: Its Emergence and Financial Examination

Written by Ahmet Tuna Balci

Fundamentally, the concept known as the metaverse is a virtual universe created through the internet, completely detached from the physical world. It is one of the largest ventures in recent years, primarily characterized by a three-dimensional structure. Access and interaction can be facilitated through various devices such as computers, 3D glasses, and mobile devices. Before delving into a detailed examination, let's explore how this virtual but interactive interface came into existence. Looking back at the earliest records, it was first introduced and discussed based on the science fiction novel "Snow Crash" written by the renowned American author Neal Stephenson in 1992, which garnered significant attention like many of his other books. During this period, numerous new companies were established, either working on major digital entrepreneurship endeavors or closely related fields, and according to subsequent studies, some of these new companies took significant steps towards realizing the concept of the metaverse [3,6].

Among the notable developments is Facebook, which, although it may not currently possess the same economic or digital power it had a decade ago, has evolved into more than just a communication application. Through various agreements with other major companies, it now holds the personal data privacy rights of a significant portion of the world's population. Furthermore, a recent addition was made to the Whatsapp application in the form of an extension called "Meta" [1]. Through the contracts made with Meta, efforts were made to protect the entirety of personal information, and Whatsapp made a statement to its millions of users who were concerned about the potential dangers of data sharing: "We are significantly limiting the information we share with Meta. For example, we continue to protect your personal conversations with end-to-end encryption, so neither WhatsApp nor Meta can see them. We don't keep records of whom you're messaging or calling, and we can't see your shared location, so we can't and don't share this information with Meta. While we need to access your contacts to provide the service, we don't share your contacts with Meta" [9]. However, following the public's growing skepticism after the pandemic and associated issues, the company experienced a significant loss of value, mainly due to the lack of trust in Whatsapp, which led to their shift towards alternative communication platforms such as Telegram, which was established in 2013 and resembles Whatsapp and other similar messaging apps. Despite subsequent efforts to rebuild trust and regain confidence, the significance of the "Meta" concept becomes evident when considering all these factors [2,8].

Additionally, various software companies, most notably Microsoft, as well as gaming companies such as Sony and Nintendo, began working on this concept. With the evolving gaming culture, major gaming brands emerged, leading to substantial revenue generation, accompanied by the rise of streaming platforms, making gaming a significant activity. While not directly linked, the most significant development that paved the way for this digital universe was the emergence of different simulations and online interfaces primarily observed in games. Roblox and Minecraft, as the two most popular virtual gaming platforms, serve as the prime examples in this field [7]. These games are played worldwide, actively engaging users in the virtual realm. Moreover, it is not just limited to gaming; investments, particularly the buying and selling of brands among themselves, and company revenues have significantly increased, benefiting not only individuals but also countries, generating substantial amounts of money [4,5].

Apart from all these developments, there are also visionary and somewhat speculative works on what can be done in the future with this virtual universe. Although the depiction of such a virtual environment as seen in the Matrix film may currently seem unrealistic, it remains unknown whether it will remain the same or evolve similarly in the future. Additionally, there are ethical considerations that are crucial, particularly given the ongoing land sales and their significance.

References:

1. Weking, J., Desouza, K. C., Fielt, E., & Kowalkiewicz, M. (2023). Metaverse-enabled entrepreneurship. Journal of Business Venturing Insights, 19, e00375. https://doi.org/10.1016/j.jbvi.2023.e00375

2. Ağırman, E. & Barakalı, O. C. (2022). FİNANS VE FİNANSAL HİZMETLERİN GELECEĞİ: METAVERSE . Avrasya Sosyal ve Ekonomi Araştırmaları Dergisi, 9(2), 329-346. Retrieved from https://dergipark.org.tr/en/pub/asead/issue/69756/1105440

3. Hubbard, T. (2022, October 18). The metaverse is the future of business. here's how to prepare. Entrepreneur. Retrieved March 11, 2023, from https://www.entrepreneur.com/science-technology/the-metaverse-is-the-future-of-business-heres-how-to/435440

4. KUŞ, O. (2021, December 31). Metaverse: 'dijital büyük patlamada' Fırsatlar Ve Endişelere Yönelik Algılar. Intermedia International E-journal. Retrieved March 11, 2023, from https://dergipark.org.tr/en/pub/intermedia/issue/67440/1024127

5. Metaverse nedir? metaverse Projelerine Nasıl Yatırım Yapılır? Midas. (2022, October 25). Retrieved March 11, 2023, from https://www.getmidas.com/midas-akademi/metaverse-nedir/

6. Ravenscraft, E. (2022, April 25). What is the metaverse, exactly? Wired. Retrieved March 11, 2023, from https://www.wired.com/story/what-is-the-metaverse/

7. Staff, E. (2023, January 3). What is the metaverse and why is it important to entrepreneurs? Entrepreneur. Retrieved March 11, 2023, from https://www.entrepreneur.com/science-technology/what-is-the-metaverse-and-why-is-it-important-to/442015

8. Chiradeep is a content marketing professional. (n.d.). What is the metaverse? meaning, features, and importance. Spiceworks. Retrieved March 11, 2023, from https://www.spiceworks.com/tech/artificial-intelligence/articles/what-is-metaverse/

9. YÜKSEL, H. (2022, July 26). Yeni Medya Ve Dijital Dönüşümün ötesi "metaverse". Kafkas Üniversitesi Sosyal Bilimler Enstitüsü Dergisi. Retrieved March 11, 2023, from https://dergipark.org.tr/en/pub/kausbed/issue/71439/1065077