Why Silicon Valley Is Betting On Bringing This Dystopian Science Fiction Concept To Life

Why Silicon Valley is betting on bringing this dystopian science fiction concept to life

Facebook faces numerous pressing issues, ranging from proposed antitrust legislation to allegations that the company promotes vaccine misinformation. However, during a recent conference call with analysts to discuss the company's latest quarterly results, much of the focus was on something entirely different: the metaverse. The metaverse was mentioned nearly two dozen times during the hour-long call.

Originally, the metaverse was envisioned as a setting for dystopian science fiction novels in which virtual universes serve as a haven from collapsing societies. Now, the concept has evolved into a Silicon Valley moonshot and has become a popular talking point among startups, venture capitalists, and tech giants.

The goal is to create a space similar to the internet, but one in which users can walk around and interact with one another in real time (via digital avatars). In theory, you could sit around a virtual meeting table with colleagues from all over the world — rather than staring at their 2D faces on Zoom — and then walk over to a virtual Starbucks to meet your mom, who lives across the country.

Zuckerberg has been extolling his vision for transforming Facebook (FB) into a "metaverse company" in recent weeks, claiming that he first considered the concept in middle school. Recently, the company announced the formation of a new metaverse product group, and Zuckerberg described the technology as "the mobile internet's successor."

Satya Nadella, CEO of Microsoft (MSFT), stated last week that his company is working on developing the "enterprise metaverse." Epic Games announced a $1 billion funding round in April to support its metaverse ambitions, boosting the Fortnite maker's valuation to nearly $30 billion. And in June, venture capitalist Matthew Ball co-founded an exchange-traded fund to enable investors to invest in companies operating in the metaverse, such as graphics chipmaker Nvidia (NVDA) and gaming platform Roblox (RBLX).

Despite the current hype cycle, the concept remains amorphous, and a fully functional metaverse is likely years and billions of dollars away — if it ever happens. Large companies joining the discussion now may be attempting to reassure investors that they will not miss out on what could be the next big thing, or that their investments in virtual reality, which has yet to achieve widespread commercial appeal, will eventually pay off. And, particularly in the case of Facebook, exaggerating the long-term potential of the metaverse may be an effective way to divert attention away from growing scrutiny in the here and now.

Whatever the motivations, significant questions remain, ranging from how tech companies will address safety and privacy concerns in the metaverse to whether people want to spend a significant portion of their lives inside an immersive virtual simulation.

"My primary concern with the metaverse is readiness," said Avi Bar-Zeev, founder of the augmented and virtual reality consultancy RealityPrime and a former employee of Apple, Amazon, and Microsoft, where he worked on the HoloLens.

"Are we emotionally evolved enough yet to transcend the safe separation of screens and texting?" he asked. "Are we safe to begin interacting on a more personal level, or will the a**holes ruin it for everyone?"

 

What is meant by the term "metaverse"?

The term "metaverse" was coined in the 1992 cyberpunk novel "Snow Crash." In the novel, main character Hiro Protagonist — a hacker and, for a brief period, pizza delivery driver — uses the metaverse to escape his life in a bleak world where the government has been replaced by corrupt corporations.

In that story, the metaverse serves as a space for virtual creation, but it is also fraught with issues such as technology addiction, discrimination, harassment, and violence that occasionally spill over into the real world.

That is a far cry from the optimistic vision presented by Zuckerberg and others. However, one indication that the metaverse is still a long way off is that no one can agree on a precise definition of what it is or could be.

Experts in the field generally agree on a few key aspects of the metaverse, including the notion that users will feel a sense of "embodiment" or "presence." That is, they will feel as if they are physically present in a virtual space with other people, seeing things in first-person and likely 3D. Additionally, it will be capable of hosting a large number of users who can interact in real time.

"You can think of [the metaverse] as an embodied internet that you are inside rather than looking at," Zuckerberg explained during the call.

As is the case with the internet today, the metaverse will not be a single technology activated at once, but rather an ecosystem built over time by a variety of companies utilizing a variety of technologies. Ideally, the ecosystem's various components will be connected and interoperable, according to Jesse Alton, a leader at Open Metaverse, a group developing open source metaverse standards.

"Someone playing a video game on Xbox could win a flaming sword, store it in their inventory, and then show it to a friend in VR and have them hold it," said Alton, who is also the founder of extended reality firm AngellXR. "It is the capability of [information] to be transported from one world to another, regardless of the platform on which it is stored."

Certain shards of the metaverse have already been discovered. Services such as Fortnite, an online game in which users compete, socialize, and create virtual worlds with millions of other players, can provide users with an early taste of how it will work. And some individuals have already invested thousands of dollars in virtual homes in order to secure their piece of metaverse real estate.

 

Why is it that everyone is suddenly discussing it?

The metaverse is a relatively new concept that appears to gain traction every few years before fading from view in favor of more immediate opportunities. Perhaps predictably, those developing this technology see signs that indicate that this time may be different.

"Many of the people who worked on it previously... are still involved; we've just been waiting for certain technological advancements," Alton explained.

Processors, gaming systems, internet infrastructure, virtual reality headsets, and cryptocurrency are all critical building blocks for establishing the metaverse and ensuring consumer adoption.

Additionally, because the pandemic forced a large portion of the world to work, learn, and socialize from home, many people may feel more comfortable interacting virtually than they did two years ago, a fact that tech companies may be capitalizing on.

"[A change of this magnitude] is invariably a multi-decade, iterative process... and yet, over the last few years, there has been an unmistakable sense that the foundational pieces are coming together in a way that feels very new and very different," Ball, the venture capitalist, explained.

 

Will the metaverse encounter the same difficulties as the internet did?

Proponents of the metaverse assert that it could eventually provide enormous business opportunities — a brand-new platform for the sale of digital goods and services. Additionally, it may have a positive effect on how humans interact with technology.

"What we're really doing is figuring out how to incorporate technology into our lives in order to improve our quality of life and our communication with others," RealityPrime's Bar-Zeev explained. "It is not simply a matter of conquering a new world."

However, there are a number of concerns regarding how the metaverse might be used or exploited.

Zuckerberg stated last week that advertisements will likely continue to be a significant source of revenue in the metaverse, just as they are now. However, some in the space fear that an ad-supported business model will create haves, who can afford an ad-free headset or metaverse experience, and have-nots, who cannot, replicating existing inequalities in the real world.

"I don't want to live in a world where those who can afford it have a better experience and those who cannot afford it have this horrible experience of being exploited for advertising," Bar-Zeev said. He added that online harassment may intensify when users can assault one another's virtual bodies rather than simply exchanging ugly words on a screen.

Data privacy and security may also become more of a concern as "a greater portion of our lives, our data, our labor, and our investments exist in purely virtual form," Ball explained. Additionally, other problems, such as misinformation and radicalization, may deteriorate in the metaverse.

"If you can now substitute an alternate reality for someone's entire reality, you can convince them of almost anything," Bar-Zeev explained. "Everyone in the field has a responsibility to prevent bad things from happening and to promote good things."