metaverse: How the Metaverse Accelerates Economic Development for Emerging Economies

Synopsis

Metaverse as technology can revolutionise the education and training sector. A recent research by the University of Maryland revealed that students can retain more information when it is presented in Virtual Reality (VR) rather than on a static computer screen.

ETMarkets.comSunil Arora, Co-Founder, Trace Network LabsAs economies continue to slump, countries are betting on the concept of digital space, popularly known as ‘Metaverse’. This comes at a time when the inflation rate has reached its peak, due to siloed ecosystems, distribution nightmares, and the rising costs of centralization control— which is pushing the dire need for decentralized architecture.

However, the rising advancement of virtual and augmented reality technologies have made businesses and nations recognize the potential of the virtual worlds. A recent example could be the ‘Shanghai Model’ that is banking on the metaverse to recover from the rampant falling economy. Even countries like South Korea are planning to invest $177 million into projects related to the metaverse.

Metaverse is slowly evolving into a brilliant blend of virtual reality, augmented reality, sensorial tech and spatial computing. It promises to give us new experiences from our bedrooms, couches, cafes and cubicles.

The New Economy
It should be noted that metaverse is promising because it is based on a simple agenda that it is a customer-first economy. Everything in the metaverse is conceived to improve the end consumer experience. For users, you will be able to go shopping, play games, meet friends, attend concerts, work and generally build a virtual life and lifestyle in the metaverse.

Metaverse as technology can revolutionise the education and training sector. A recent research by the University of Maryland revealed that students can retain more information when it is presented in Virtual Reality (VR) rather than on a static computer screen. This eventually leads to more and more students learning in an immersive environment, having better skills, landing up better jobs, and recirculating the economy.

The soft skills of employees can be enhanced four times faster while using VR than in traditional in-personal classrooms, according to a PricewaterhouseCoopers report. Interestingly, in the US, Walmart has already deployed more than 17,000 headsets to enhance the overall employee training experience, and the results have been shocking. The time has been cut from 8 hours to only 15 minutes for training employees effectively. Reducing time and high efficiency of employees will have a direct result in growing the economy at a rampant speed.

An important sector that the metaverse aims to revolutionise is the manufacturing and machinery systems that are complex to build. Metaverse coupled with AR/VR technology can be used in lowering the costs of complex industrial products and machinery. It lowers the costs and potential for human error. Notably, it can also be used to communicate instructions in a step-by-step manner.

Simulation and modelling tools in the metaverse can be used to increase productivity and visibility for stakeholders. Virtual simulation tracks inventory, labour inputs, and cost simulations, all can be done through something called an “enterprise metaverse system” that mimics the physical world and enables better control of design, implementation and execution.

Further, traditional finance will be completely disrupted due to the emerging de-centralised finance (DeFi) world in the metaverse. The metaverse is going to switch the power from centralised banks and financial institutions to the hands of the end users. Borrowing and lending will be much easier, direct and transparent. Overall, payments, investments, trading and lending will soon be possible in the metaverse. Brick-and-mortar banks will be a thing of the past as customer service and interactions move to the metaverse.

The metaverse can also optimize urban development, with several cities like Singapore and Saudi Arabia already creating digital twins to improve operational efficiencies and urban planning. Digital twin enables users to visualise in 3D how the city will develop and evolve as the population of the country expands.

Meanwhile, the metaverse is opening new avenues for creating value and earnings. Brands can produce virtual clothing, objects, and real estate and sell them, just like in the real world. This indicates that a new alternative financial system is going mainstream that involves companies creating new value and earnings, harnessed by the power of cryptocurrencies and NFTs.

“E”-Commerce to Experiential “E”-Commerce
People don’t want to visit an e-commerce platform and buy the product as seen in the photos. They want to experience it, and engage with it—this is only possible in the metaverse through digital avatars which can become your digital twin, all fueled by the rising interest in NFTs. What pushes metaverse to cater for a larger audience is that it works without the need for a central regulatory.

The online shopping experience has its own set of issues. This includes no touch and feels like in the real world, the problem of returns and cost of returns, long service cycles, which makes an overall dip in customer satisfaction.

Metaverse brings the experience into online e-commerce, possible through the combination of AR/VR with conversational commerce. It also enables the creation of a new purchase experience in a virtual store with no geographical limitations, meaning unlimited access from anywhere in the world for all users.

Further, real-time use and feedback of virtual products make purchase decisions better along with brand loyalty. Users get a personal experience without having to step out of their comfort zone or even compromise their privacy.

Conclusion
Business leaders should start considering metaverse to build brand connections with communities. Web3 has the potential to revive the sinking economy because it is going to change the world that we see today. Metaverse will be a haven to inspire trust and loyalty for industries. Adopting an immersive style of conducting business, will enrich client and employee interactions.

Metaverse will only boost global economic development, increasing purchases, and language, as the lines between real and virtual get blurry. A virtual economy will preserve society’s experiences with virtual professions that bring profound value.

Despite the current hype and backlash, the metaverse has the potential to change the world that we see today, albeit digitally. In the future, it will only add more ways to increase revenue and add to the growing global economy.
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    Updated: 08/05/2022 — 11:00