Metaverse – the next
A guide to the metaverse: the opportunities for e-commerce; the risks; the technology; and legal/regulatory environment
Ever since Facebook’s October 2021 announcement of its rebranding and name change to Meta not only has the metaverse been one of the most- discussed technologies, but investment in the technology has continued despite a contraction in the cryptocurrency market.
The metaverse, roughly defined as 3-D virtual worlds that mimic the real world, actually comprises many different metaverse ecosystems. Examples include Roblox, Fortnite, Minecraft, Decentraland, The Sandbox, Horizon Worlds. Currently, there is limited interoperability and connectivity across these ecosystems. Several well-known global firms, such as J.P. Morgan, HSBC, Standard Chartered (banking), Samsung (technology), Adidas (apparel) and PwC (consulting) have created a presence on the current metaverse platforms The Sandbox and Decentraland.
Our six Deutsche Bank experts believe that the most likely future scenario in the future is one of multiple metaverse ecosystems, but which allow interoperability through standard solutions and protocols for digital identity, credentials, and asset ownership. The metaverse could usher in the next e-commerce revolution as it gains traction through advances in technology and becomes more mainstream. Financial services firms have a significant role in powering this evolution.
This white paper is structured as a guide to the metaverse and explores the opportunities for e-commerce; the technology; and the legal/regulatory developments. The authors address key questions such as: What is the definition of the metaverse? How does it help individuals and corporates? What value, financially and qualitatively can it deliver? How mature is the technology and when will it be ready for mainstream adoption? What are the main risks and challenges and how can they be mitigated?