In the context of Web3, Metaverse does not belong to a single corporation. It is decentralized, meaning each user possesses their own assets, identities, and control over them.
The History and Evolution of Metaverse
The concept of a virtual world has actually existed for a while. In the early 2000s, Second Life pioneered the concept of an online world where users can build houses, businesses, and even a simple digital economy.
However, the idea of Metaverse only truly developed after the rise of blockchain technology allowed an authentic form of digital ownership.
When Facebook rebranded as Meta in 2021, the term “Metaverse” became mainstream. Values of token such as MANA (Decentraland) and SAND (The Sandbox) rose sharply, mirroring the enthusiasm towards a virtual economy.
Now, large corporations like Microsoft, Apple, Google, and Nvidia are competing to develop their own Metaverse ecosystem, be it for entertainment, work, or education.
Metaverse is more than a virtual world. It is a combination of multiple interconnected technologies:
- VR (Virtual Reality) — Creates an immersive digital experience.
- AR (Augmented Reality) — Integrates digital elements to the real world.
- Blockchain — Ensures a safe and transparent ownership of digital assets.
- NFT — Represents items, properties, or unique creations in the virtual world.
- AI & IoT — Creates lively interactions, habits, and digital ecosystems.
Every interaction in the Metaverse—from purchasing virtual lands to participating in digital concerts—are registered in a blockchain. This means that ownership is truly in the hands of each user, not a centralized corporation.
As an example, if someone purchases a plot of land in Decentraland using the MANA token, then the ownership data is recorded permanently in the Ethereum blockchain. That asset can be resold, rented, or developed just like a real property.
Main Components of the Metaverse Ecosystem
Metaverse is a complex ecosystem made up of multiple elements that support one another:
1. Digital Avatars
A representation of the user in the virtual world. Avatars are more than just a visual symbol, but a digital identity that can be personalized or even commercialized.
2. Digital Assets and NFT
Digital items such as avatar clothes, houses, vehicles, and virtual artwork that can be bought and sold in the NFT market. B
3. Crypto Tokens
Each Metaverse platform typically has its own utility token—such as MANA (Decentraland), SAND (The Sandbox), or APE (Otherside)—for internal transactions.
4. Virtual World (The Metaverse Platform)
This is where interactions happen. For example: Decentraland, The Sandbox, Meta Horizon Worlds, Somnium Space, and Otherside by Yuga Labs.
5. Web3 Interoperability
The future of Metaverse leads to interoperability—a virtual world that is connected through the same blockchain protocol.
Metaverse cannot exist without blockchain. This technology is the foundation of digital ownership, transparent transactions, and a virtual economy.
Digital assets such as land, NFTs, or virtual currencies are all registered in a blockchain, making it difficult to counterfeit or manipulate.
On top of that, smart contracts function as an automatic controller in the Metaverse economy—they are present in asset purchases, property rent, and even royalty distributions to creators.
Several large crypto tokens that play an important role in the Metaverse ecosystem are:
- MANA (Decentraland) – For transactions of virtual land.
- SAND (The Sandbox) – For development and interaction in the virtual world Sandbox.
- APE (ApeCoin) – The main currency in the Otherside world.
Crypto and Metaverse are now two sides of the same coin; one provides technology for ownership, while the other provides social context and a digital economy that can be owned.
One of Metaverse’s largest selling points is its economic potential. According to a McKinsey analysis (2023), the Metaverse’s economic value can reach $5 trillion in 2030. This number is due to the growth of digital commerce, entertainment, education, and virtual investment industries.
Here are several real-world opportunities in the Metaverse:
Virtual Land Investments
Digital lands in worlds such as The Sandbox or Decentraland hold values just like physical real estate. Investors can rent, build, or resell their virtual projects.
Fashion and Digital Identities
Large brands such as Gucci, Nike, and Balenciaga have released digital collections of Metaverse avatars. Virtual fashion has become the new status symbol.
Entertainment and Virtual Events
Digital concerts, such as Travis Scott’s on Fortnite and Ariana Grande’s on Roblox, are a testament to the unlimited potential of a virtual entertainment market.
Work and Education
Metaverse is being used for training, conferences, and remote work. Platforms such as Microsoft Mesh and Horizon Workrooms create collaborative virtual working spaces.
Metaverse gives everyone a chance to be a part of a new digital economy as developers, creators, designers, and investors.
Behind its infinite potential, the Metaverse also faces many challenges.
Technology Infrastructure
Access to VR/AR equipment is still limited and expensive, slowing down mass adoption.
Privacy and Security
Compilation of biometric data (pupil movements, facial expressions) raises concerns about digital privacy.
Regulation and Ownership
There have yet to be clear global standards about the legalities of virtual asset ownership and user protection.
Financial Risks
Speculation about the prices of virtual land or NFT is highly risky, especially during times of volatility in the crypto market.
These challenges indicate that the Metaverse is still in its early phase—the exploration phase, which requires time and innovation to be fully complete.
Indonesia is starting to take its first steps into the Metaverse. Companies such as the WIR Group introduced MetaNesia, a local Metaverse platform connected with the worlds of business and entertainment.
Additionally, several local brands and institutions have experimented with the virtual world through digital concerts and collectible NFTs.
The Indonesian government has also shown interest towards the Metaverse through digital literacy and creative economy programs that encourage Web3 adoption.
For local crypto investors, the Metaverse is an opportunity to be involved in a digital ecosystem with global potential, without being limited by geographical boundaries.
In the future, the Metaverse will not stand on its own. It will evolve into an interoperable ecosystem, where avatars and assets can seamlessly move between virtual worlds.
Integration between AI, blockchain, and Internet of Things (IoT) will create an even more realistic and efficient digital experience. The concept of “phygital”, a combination of physical and digital, will be a new standard for human interaction.
The future of the Metaverse is a future where boundaries between the real and digital worlds continue dissipating, and the global economy will shift into it.
Metaverse is not just a quick trend. It is a foundation of the next digital transformation: the meeting point of technology, creativity, and a decentralized economy.
From digital avatars to a billion-dollar economy, from social interactions to digital asset ownership, the Metaverse provides a new way for individuals to interact with the digital world.
However, the success of the Metaverse depends on the collaboration between developers, regulators, creators, and the global crypto community in creating an inclusive, secure, and sustainable ecosystem.
Just like internet in the early 1990s, the Metaverse is still young. However, its revolutionary potential can change the way we work, invest, and live in the era of Web3.
