Blockchain and non-fungible tokens (NFTs)
Blockchain technology, a distributed ledger technology, that permanently records transactions in independent computer nodes, enable the democratisation and decentralisation of the internet. Decentralisation is the vision of Web 3.0 and blockchain components such as NFTs will fuel this change. FMCG and luxury brand companies are already exploring extended reality experiences in the metaverse with the NFTs powered by blockchain technology. For instance, “Into the Metaverse” is an NFT collection by Adidas that gives holders the privilege to access exclusive Adidas merchandise in real and digital goods.
Virtual Reality (VR) and Augmented Reality (AR)
VR and AR are the building blocks of the user experience in Web 3.0. For the metaverse to be successful, it needs to create a compelling realm outside of the real world. AR and VR are the technologies that enables us to create metaverses that are three-dimensional and immersive. VR creates an immersive experience for users within a virtual environment, while AR adds virtual elements to the existing real world.
We see multiple use cases emerging in this area. For example, various home designer outlets now have AR-enabled visualisers for customers to envisage the product in their home environment before buying it. IKEA’s AR app called IKEA Place allows customers to get the look and feel of their home transformation when they buy a product.
5G and edge computing
5G and future generations of mobile networks are key enablers of the metaverse. Reportedly, 5G increases speed up to 20 times that of 4G and edge computing reduces the latency below milliseconds. Edge computing will distribute the infrastructure closer to the end user and this will enable faster data movement between AR/VR devices and cloud at low latency. 5G and mobile edge computing will be the cornerstone of the metaverse experience.
Artificial Intelligence
AI and deep learning are already key pillars of many businesses’ digital strategies. AI will enable the immersive user experience and simulated realities built in the metaverse world. Natural Language Processing (NLP) and Machine Learning (ML) will be used in the computer vision, speech recognition, object detection, tracking and graphics rendering in the metaverse.