Why Financial technology will play a key role in the metaverse?
This virtual space of the metaverse, like many other fields, has sparked a desire among financial innovators to learn how financial technology and new financial technology solutions can provide financial services in this completely new world. The use of metaverse technology to create new business models may result in the emergence of cryptocurrency as a large-scale alternative financial system. Other large and small financial technology firms are also attempting to create digital worlds. These types of digital financial ecosystems can support metaverse activities and transactions.
What is the metaverse?
By combining technologies such as virtual reality (VR) and augmented reality (AR), the metaverse (meta + universe) creates a sense of “virtual presence” (AR). The Metaverse is a shared virtual 3D universe that is interactive, immersive, and collaborative. The Metaverse can be viewed as a collection of universes, similar to how the physical universe is made up of planets linked by space. Snow Crash, a Neal Stephenson novel published in 1992, described a vision that went beyond single-game video conferencing software. This concept is exemplified by massive online social games like Fortnite, Battle Royale, and user-created virtual environments like Minecraft and Roblox. Video conferencing techniques were used to connect geographically dispersed workers during the global COVID pandemic, indicating what is to come.
According to Nick Clegg, Facebook’s vice president of global affairs, the introduction of the metaverse—”a new stage of interconnected virtual experiences using technologies such as virtual and augmented reality”—will result in similar consumption. The Metaverse is expected to grow into a significant digital platform for personal and business interaction (including finance). Indeed, financial data management and financial transaction management that match real-life provided by financial technology solutions are expected to be the most important meta-universe, making meta-universe as necessary as real life. The appearance of the meta-universe can be seen in games that sell digital assets, such as World of Warcraft and Habbo Hotel.
Rev Lebaredian, Nvidia’s vice president of simulation technology, stated that “We’re talking about making a reality that’s richer than the real one. Virtual places are permanent objects, and the identities that move between them enable digital goods and identities to move from one virtual world to another, similar to how we do in our augmented reality world.”
However, not everyone believes that the metaverse and digital assets will evolve to the point where financial technology firms will need to manage, sell, or otherwise manage them. It is undeniably true that almost all major tech players, not just Microsoft and Facebook, want to “own” their own unique metaverse.
How will digital platforms contribute to the experience of the digital world?
Social media and video game companies are at the heart of the metaverse’s capability, leveraging their massive user bases, creation platforms, interactive digital events, and cutting-edge hardware to lay the groundwork for the metaverse. While it appears that the focus will be on virtual reality, digital assets, blockchain, cryptocurrencies, and, more frequently, video games, the metaverse will provide much more comprehensive and limitless opportunities for many industries. Whatever shape the metaverse eventually takes, its emergence will necessitate technological advancements in infrastructure, consumer-centric hardware, platforms, and other areas.
The metaverse will be their workplace for these developers, whether they are creating a new game, digital objects, or entire virtual worlds. Digital platforms will make a significant contribution to the digital world’s experience in the metaverse. You can work, play video games, buy digital items, chat with friends, and consume by launching an immersive experience with a virtual reality viewer. You can work, play video games, buy digital items, chat with friends, and consume multimedia content while in the metaverse by launching an immersive experience with a virtual reality viewer. In a nutshell, Facebook CEO Mark Zuckerberg defines the metaverse as a virtual environment in which you can interact with other people in a digital space.
The meta-universe is a virtual world with things similar to what we have in real life, a functioning economy, and places where we can go to communicate with others. This is a shared virtual world in which you can buy and sell land, buildings, avatars, and even names using digital currency. Users in this world can buy and access digital products on any digital platform of their choice. Today, the Apple App Store and Google Play are the closest virtual worlds to us, where you can buy and use various digital products across multiple platforms.
Aside from gaming and video conferencing, shopping and retail may be the most significant appeal of the metaverse to the average consumer. Today, brands and retailers are attempting to stimulate new forms of customer interaction in the metaverse in order to sell more products. Financial technology companies are capitalising on new financial needs, and many startups are developing entirely new virtual products ranging from avatars to cryptocurrencies. The metaverse, as a buzzword, refers to the various virtual events, environments, and resources that have gained traction during the online pandemic change. These new technologies, when combined, provide a glimpse of what the next Internet will be like.
However, technology companies, particularly Facebook, are increasingly employing the concept of a “meta-universe,” a classic science fiction term describing a virtual world in which you can live, work and play. In a nutshell, the Metaverse is a digital world where anything we can imagine can exist. The term “metaverse” refers to the concept of a shared and permanent virtual space, similar to a digital mirror of the real world, but without any constraints. The meta-universe can now be classified as a fusion of virtual reality and physical reality on the new Internet, thanks to the development and dissemination of this concept.
Metaverse is a world that will flourish in the future.
Cryptocurrency and digital art, specifically non-fungible tokens (NFT), are commonplace in this world. Companies and futurists began to imagine what it would be like to shop in the meta-universe as the hype surrounding digital assets and cryptocurrencies grew. While technology enthusiasts, gaming platforms, and social media are busy discussing the extraordinary experience we will have in the metaverse, other gamers are paying attention to other digital possibilities and eager to find new ways to make money and sell goods. In the virtual world. In just a few weeks, Metaverse has become not only the new favourite of large technology companies but also of the investment industry.
Despite being based on a dystopian science fiction novel, the metaverse is the latest obsession in the tech world. At a basic level, the Metaverse combines various technological elements, such as video, augmented reality (AR), and virtual reality (VR), in which users can exist in the digital world. In the metaverse, the lines between media, entertainment, technology, and video games blur.
What would financial technology solutions look like in the metaverse?
Metaverse’s importance as a digital platform for personal and business interactions, including financial transactions, is expected to grow. The ability to manage finances and transactions will be critical in making this new environment as immersive and realistic as possible. People were encouraged to interact and pay digitally more than ever before as a result of the pandemic. As a result, financial technology adoption has skyrocketed around the world. Financial technology solutions are now used by 88 per cent of US consumers.
In reality, the most important indicator of making the metaverse as indispensable as real-life will be financial data management and financial transaction management techniques provided by financial technology solutions similar to real life. A massive economic ecosystem is implied by a virtual world in which you can buy and sell houses, products, clothing, land, and avatars just like in the real world.
Some financial players rush into the meta world to establish themselves as forerunners of the digital finance future. According to the Korea Times in August 2021, brokers and banks in Korea have already begun to build active virtual environments for their clients.
The metaverse – a threat to user privacy?
While it may be a decade before enough core functionality is available to create an immersive metaverse experience, the company formerly known as Facebook has taken the first step in marketing virtual headwear solutions around the world. Oculus was founded seven years ago. However, Zuckerberg and his team are far from the only tech visionaries who have ideas for how to shape a metaverse that combines virtual reality and other technologies. And those who have given it some thought are concerned about the new world associated with the social media giant, which may have access to even more personal data, and are accused of failing to prevent the spread of dangerous misinformation and other harm online.
From the metaverse to financial technology, to the inverse
The investment of massive technology organisations in the virtual world of the metaverse has completely changed the rules of the game. It is nearly impossible for banks and other traditional monetary foundations to remain competitive amid all of the cycles that necessitate quick transformation and creative solutions. It also appears that they will struggle to remain competitive if they do not make the necessary investments in digital transformation as soon as possible. Working with financial technology companies and profiting from financial technology innovations to establish a presence in this new virtual world will be the quickest alternate path to establishing a significant presence in the meta world.