The unprecedented takeover of the COVID-19 pandemic caused the downfall of several industries, yet it bloomed the digital world quickly. Humans have created a real-life version of a digital world known as the Metaverse.
Meta, formerly Facebook, aims to extend its services beyond a 2D interface and towards an innovative 3D space to create more meaningful connections. People can experience the Metaverse through various ways, including Virtual Reality (VR), Augmented Reality (AR) and Artificial Intelligence (AI).
Although the online gaming world has dominated the Metaverse, it is much more than that. If executed successfully to the mass audience, Metaverse can change the traditional nine-to-five office lifestyle. It will allow people to free themselves from the shackles of an office routine and let them work remotely.
According to published research in 2023 called “Digital Business Model Innovation in Metaverse: How to Approach Virtual Economy Opportunities”, the change in the name of ‘Facebook’ to ‘Meta’ shows the significance of the digitalized universe.
Meta recently introduced AI versions of known personalities such as Kendall Jenner and Mr. Beast. This feature allows users to chat with these AI bots who have a name, personality and background story. It has met with significant criticism amongst some people on Instagram, who have labelled this as ‘creepy’ and said this further disconnects real and meaningful interactions. Additionally, Meta has accepted that the information provided by these AI characters may be outdated as it is before 2023, and further improvements will be made with time.
However, the Metaverse is not limited to social media platforms. It extends to companies selling physical products, such as Coca-Cola, Dyson and IKEA, who have already invested in the Metaverse. The increased interest of considerable corporations in virtual reality is a good enough reason to understand its impact on our future.
The economic aspects of the Metaverse
Much like the real world, no human being owns the Metaverse. It simply consists of different technologies and companies. People, therefore, are needed to buy, sell, operate and maintain parts of this digital world. In an article published by Gartner, a management consulting company, Jackie Wiles writes that the Metaverse will run on digital currency and non-fungible tokens (NFTs). Unlike Bitcoin or another cryptocurrency, NFTs cannot be replaced with another NFT. Although anyone can access and print the NFTs bought, it gives the owner of NFTs full rights to the original digital work.
Not long ago, some were suspicious of the emergence of digital currency, whereas others quickly invested in it and promoted this idea. Despite the constant change in the economic value of digital currencies, it can be used in the Metaverse. After all, the physical currency we use today also changes in value in the real world.
A while back, Damac, a real-estate company based in the UAE, invested $100 million in the Metaverse. One might think that such a massive investment in a developing idea is a bold step, but not Damac. Upon financial considerations, the company is optimistic about the outcome.
According to their estimations, the current monthly sales of $27.2 million can be multiplied by seven to eight times with this investment. They aim to expand their sales to customers worldwide through the Metaverse. That is, anyone sitting anywhere in the world can experience a virtual property tour and potentially purchase it with NFTs.
Depending on the product or service, respective companies have different plans for fitting themselves into this new universe. So, what is Pakistan’s goal?
Dawn News uploaded paid content on 20th October 2022, which advertised Pakistan’s first ever Metaverse start-up called “The Cloud City Metaverse”, or TCCM. This is a newly launched business, co-founded by Umer Abbas, where users can play in a virtual world free of charge.
A Digitalized Pakistan?
I tried to find research papers to understand Pakistan’s stance on this hot topic. Upon searching, I found zero published research that discusses the Metaverse and Pakistan in the same article; this is concerning. As the world promotes and invests in the Metaverse, Pakistan is not even in the picture’s background.
A 2015 research paper, “Design Consideration of Online Shopping Website to Reach Women in Pakistan”, published in the Procedia Manufacturing journal, shares that Pakistan ranks second as the world’s leisurely adopter of online shopping.
Another research, “Impact of Factors on Consumer’s Decision-Making Process for Online Shopping in Pakistan”, published by Salahuddin and Tahir (2021) in the Journal of Economic Development, Management, IT, Finance and Marketing, informs that the State Bank of Pakistan reported a 93.7% rise in the e-commerce sales of Pakistan as of 2018. This significant increase is due to the availability of the Internet to a larger population.
This country is home to many diverse shops. What if these stores opened up in the Metaverse and ultimately brought in customers in this universe as well? It will also introduce foreigners to famous and unique Pakistani items they can buy. That being said, enabling residents to invest and adapt to the Metaverse before it is too late is an issue that needs to be resolved.
In September 2022, Dawn News published an article titled, “The Metaverse opens up a world of possibilities for Pakistan. Can we take advantage?” The author, Hassan Baig, criticises Pakistan’s non-existent presence in this new era of technology and gives good initiatives it should take in the Metaverse. He emphasizes the government to do its honest part in promoting and establishing services in the Metaverse safely.
Moreover, Baig also shares various ways of utilizing the digital world in Pakistan. He suggests renowned Pakistani universities should offer courses in the Metaverse where world-renowned educators can teach. This approach will prepare undergraduates to tackle the digital world once they enter the corporate world. He also mentioned how Pakistan could effectively use the Metaverse, including investments in real estate, fashion outlets, security, crisis relief and skills training.
Furthermore, Dawn News uploaded paid content on 20th October 2022, which advertised Pakistan’s first ever Metaverse start-up called “The Cloud City Metaverse”, or TCCM. This is a newly launched business, co-founded by Umer Abbas, where users can play in a virtual world free of charge. At the same time, players can customize and own virtual infrastructure if they buy NFTs. Moreover, TCMM has also been invited to attend the Dubai Metaverse Assembly, among other international events, where it has received appreciation for its work.
The End is Near
The reign of the Metaverse is approaching with the introduction of every new technology. On the one hand, business owners and investors are keen on spending millions of dollars to expand and actualize the digitalized universe. Many employees would be happy to return to working from home, which is one of the dreams that the Metaverse aims to meet. An open and easily accessible worldwide market further enhances the available opportunities for merchandisers and consumers.
A 2023 article titled “Digital Business Model Innovation in Metaverse: How to Approach Virtual Economy Opportunities” in the Journal of Information Processing & Management predicted that the metaverse market could be worth $13 trillion by 2030. It would be not very pleasant to know that out of this $13 trillion, not a single penny belongs to Pakistan.
This can be changed if more tech-based start-ups like TCCM are encouraged and funded by the country. Pakistan should adapt its people to the constant change in technology to stay up-to-date and contribute to the advancements in the world.
Amid the rise of the Metaverse, Pakistan must secure its position as a vital member of the virtual world to promote employment and success amongst its citizens. Nonetheless, the Metaverse is still a relatively new concept that needs to be perfected and understood better before people can entirely rely on it.
References:
- https://about.meta.com/metaverse/
- https://doi.org/10.1016/j.ipm.2023.103457
- https://www.gartner.com/en/articles/what-is-a-metaverse
- https://doi.org/10.1016/j.promfg.2015.07.942
- http://0-search.proquest.com.mylibrary.qu.edu.qa/scholarly-journals/impact-factors-on-consumers-decision-making/docview/2464865316/se-2
- https://www.dawn.com/news/1711561
- https://www.dawn.com/news/1715488
Also, Read: Pakistan; The Road towards Digitalization
Sarah Arif is pursuing her Bachelor’s degree in Mechatronics Engineering. Her keenness to share acquired knowledge has led her to publish articles for Pakscience & Scientia. Additionally, she believes in diversifying her experiences for personal & and professional growth.
