What is Metaverse?
Prior to discussing the Metaverse’s potential to
penetrate the core sectors including finance, one must get a
basic understanding of what the Metaverse is. “Meta”
means beyond, so the metaverse basically promises a
universe that is beyond the real world as we know it today.
The Metaverse can be understood as an innovative way for
people to interact with emerging technologies. These
evolving concepts have led to the creation of a digital
economy, known as the Metaverse, where goods and
services can be created and acquired virtually.
In simple words, a metaverse is a network of 3D
virtual worlds focused on social connection. In futurism
and science fiction, the term is often described as a
hypothetical iteration of the Internet as a single, universal
virtual world that is facilitated using virtual and
augmented reality (VR and AR) headsets.
As per Facebook founder Marc “The metaverse is the
next evolution of social connection, 3D spaces in the
metaverse will let you socialize, learn, collaborate, and
play in ways that go beyond what we can imagine.”
Once this virtual world of the Metaverse comes into
being, this should work like a replica of the real world and
the users in Metaverse should interact, react, and transact
like real-world humans, although this is happening in the
hypothetical world of the Metaverse. The user actions in
Metaverse are expected to generate humongous datasets
related to user behavior, lifestyle, and tractions data.
Typical offerings in Metaverse could be a shopping
mall, gaming, education, news and media, concerts, events
and fashion shows, social interaction, entertainment,
advertisement, etc., etc. All these services would need users
to spend, and this could give birth to another push in the
fintech payments and fintech lending industry with the
evolution of a newer model that need to be explored to get
the Metaverse commerce into action.
Keywords : Metaverse, Fintech, Defi, Banking, Payments, Credit, Neo-banks, AR, VR.