A Next Generation Virtual World (Metaverse)

Assignment # 1

Digital and Logical Design

Submitted by:
Muhammad Naveed UL Hassan

Form No:
F22BS026365

Submitted to:
Mr. Usman Ali

Department of Information Technology

UNIVERSITY OF EDUCATION (VEHARI CAMPUS)

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What is the metaverse?
Introduction
Metaverse is a new beginning to create
something new, much like the early days of
the Internet. Billions are being invested in
building metaverse, and tech tycoons call it
the future, but what is metaverse? Its most
basic definition refers to “the concept of a
fully immersive virtual world where
people gather to socialize, play, and
work.” It is a simulated digital environment
that combines augmented reality (AR),
virtual reality (VR), blockchain, and social media principles to create areas for rich user
interaction that imitate the real world.
Metaverse is not a product of Facebook, Microsoft, or Google. It is basically a term
derived from the 1992 cyberpunk novel “Snow Crash,” which implied a world in
which people could interact with each other by using their avatars.
The metaverse concept, recently publicized by Facebook's rebranding as Meta, will
revolutionize how we interact with the world. Facebook's CEO, Mark Zuckerberg, stated
that "the next generation of the internet is metaverse" and that existing social media
will come under the umbrella of this new wave. He describes metaverse as "a virtual
environment where you can present yourself with people in digital spaces. You can
kind of think of this as an embodied Internet that you're inside of, rather than just
looking at."
Definition:
The Metaverse is the post-reality universe, a perpetual and persistent multiuser environment
merging physical reality with digital virtuality. It is based on the convergence of technologies
that enable multisensory interactions with virtual environments, digital objects and people such
as virtual reality (VR) and augmented reality (AR). Hence, the Metaverse is an interconnected
web of social, networked immersive environments in persistent multiuser platforms. It enables
seamless embodied user communication in real-time and dynamic interactions with digital
artifacts. Its first iteration was a web of virtual worlds where avatars were able to teleport
among them. The contemporary iteration of the Metaverse features social, immersive VR
platforms compatible with massive multiplayer online video games, open game worlds and AR
collaborative spaces
The metaverse is a concept of a persistent, online, 3D universe that combines multiple different
virtual spaces. You can think of it as a future iteration of the internet. The metaverse will allow
users to work, meet, game, and socialize together in these 3D spaces.
Users are gain access to it through personal terminals that project a high-quality virtual reality
display onto goggles worn by the user, or from low-quality public terminals in booths.
Metaverse examples:

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While we don't yet have a single, linked metaverse, we have plenty of platforms and projects
similar to the metaverse. Typically, these also incorporate NFTs and other blockchain elements.
Let's look at two examples:

• Second Live
Second Live is a 3D virtual environment where users control avatars for socializing,
learning, and business. The project also has an NFT marketplace for swapping
collectibles. In September 2020, Second Live hosted BNB Smart Chain's Harvest
Festival as part of its first anniversary. The virtual expo showcased different projects in
the BSC ecosystem for users to explore and interact with.

• Axie Infinity
Axie Infinity is a play-to-earn game that’s provided players in developing countries an
opportunity to earn consistent income. By purchasing or being gifted three creatures
known as Axies, a player can start farming the Smooth Love Potion (SLP) token. When
sold on the open market, someone could make roughly $200 to $1000 (USD) depending
on how much they play and the market price.
While Axie Infinity doesn't provide a singular 3D character or avatar, it gives users the
opportunity for a metaverse-like job. You might have already heard the famous story
of Filipinos using it as an alternative to full-time employment or welfare.

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Who owns it?
• Just as no one truly owns the internet, no one person or company owns the
Metaverse. But there are companies and people who hold massive sway and contribute
more to its maintenance and creation than any other company.
• No one owns the entire metaverse network. Metaverse is not a real physical thing that
you can own. It is a virtual 3D world where everyone can participate. There are different
metaverses created by different people or teams.
• Theoretically, the creator of a metaverse is its true owner, but that may not always be
the case. In the case of the Facebook Metaverse, it is owned by the company founder
and CEO, Mark Zuckerberg.
• Decentraland was created by Ari Meilich and Esteban Ordano for a company called
Metaverse Holdings Ltd., which and a number of investors own the rights to the digital
universe.
Which ideas are discussed in metaverse?
Many ideas are discussed in metaverse like:
• Metaverse Decentraland; A Virtual World
Decentraland is a decentralized virtual reality platform where you can purchase virtual
plots of land in the form of NFTs using the Ethereum blockchain's MANA
cryptocurrency. You may also create your own business, shops, and applications on
that land. Its users govern the platform through the Decentraland DAO, a decentralized
autonomous organization

• Governance, Security and Safety System in Metaverse

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What is the role of AI in metaverse?
• The role of AI in the Metaverse is to be the virtual assistant for all human beings in a
virtual world. It can help with anything from navigating and mapping your
surroundings, to provide you with information about certain locations, people, or
objects.
• Artificial intelligence (AI) has been widely applied in our lives in recent years: business
strategy planning, decision making, facial recognition, faster computing, and more.
More recently, AI experts have been studying the possibilities of applying AI to the
creation of immersive metaverses.
• AI has the potential to process a lot of data at lightning speed. Combined with machine
learning techniques, AI algorithms can learn from previous iterations, taking into
account historical data to come up with unique outputs and insights.
• Within the metaverse, AI can be applied to the non-player characters (NPCs) in
different scenarios. NPCs exist in almost every game; they are a part of the gaming
environment designed to react and respond to players’ actions. With AI’s processing
abilities, NPCs can be placed across the 3D spaces to facilitate lifelike conversations
with users or perform other specific tasks. Unlike a human user, an AI NPC can run on
its own and be used by millions of players at the same time. It can also work in several
different languages.
• Another potential application for AI is in the creation of metaverse avatars. AI engines
can be used to analyze 2D images or 3D scans to generate avatars that look more
realistic and accurate. To make the process more dynamic, AI can also be used to create
different facial expressions, hairstyles, clothes, and features to enhance the digital
humans we create.
• AI is one of the most important enabling technology for the foundation and
development of the metaverse, which helps it in reaching its full potential. Based on the
original image or 3D scan, an AI model will analyze user images automatically and
create a very realistic simulated rendition called avatars. In the metaverse, the
representational attributes and features of avatar affect the overall quality of user
experience. Concretely, AI can plot a variety of facial expressions, feelings, fashions,
aging-related characteristics, and so on for the avatar to make it more dynamic [29]. As
a result of significant artificial intelligence training, the metaverse will be available to
individuals all across the world, regardless of their linguistic competence. Making the
metaverse experience that is both entertaining and authentic while salable will be
challenging without the use of AI.
What is the role of blockchain technology in metaverse?
The motivation behind integration of blockchain in the metaverse are summarized below:

• Ensuring Data Privacy and Security: The metaverse collects vast volumes of sensitive information
in order to present the user with the greatest possible experiences. The organizations or the
applications need this data for the successful development of targeting systems. If the information
is leaked into the hands of the wrong people, they might also target users in the real world.
Blockchain, with its authentication, access control, and the consensus mechanisms provide the
users complete control of their data thereby securing the data privacy of the users. The blockchain
uses asymmetric-key encryption and hash functions which ensure security of data in the metaverse.
• Ensuring the Quality of the Data: The metaverse receives data from multiple applications ranging
from healthcare to entertainment. The AI models in the metaverse rely on this data for making key

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 decisions for its stakeholders. The creation of the objects in the metaverse relies highly on the
quality of data shared by the users from the real world. Blockchain, provides complete audit trails
of transactions, allowing individuals and organizations to validate all transactions. This will
increase the data quality in the metaverse.
• Enabling Seamless and Secured Data Sharing: The metaverse depends on AR and VR devices,
resulting in a more connected and immersive world. The metaverse’s real benefit resides in its
integration with AR on digital and physical objects. The metaverse’s success is dependent on the
seamless sharing of AR and VR data, which enables the development of new, advanced
applications that aid in resolving real-world problems. The blockchain’s advanced encoding
information system enables the metaverse’s data sharing to be seamless and secure.
• Enabling Data Interoperability: In the metaverse, stakeholders need to access and hold assets in
different virtual worlds and use a variety of applications. Data interoperability across these virtual
worlds is limited due to the different environments in which they are built. It is possible to exchange
data on two or more blockchains located in distinct virtual worlds using a cross-chain protocol.
Users can migrate more easily between these virtual worlds because of the blockchain’s
interoperability.
• Ensuring Data Integrity: The metaverse’s data must be maintained consistently and accurately. The
stakeholders may lose faith in the metaverse if the integrity of the data is compromised. The
metaverse data is saved as a copy in every block throughout the chain that can’t be amended or
removed without the consent of majority of the participants, due to the immutability provided by
the blockchain. This mechanism of blockchain ensures the data integrity of the metaverse.
• As the metaverse is built on blockchain technology, any items you own or produce are
unique and cannot be replicated or stolen. As with art pieces, blockchain technology
assures that distinct digital goods traded in the metaverse are one-of-a-kind. Furthermore,
cryptocurrencies keep the metaverse running; everything is purchased and sold using
distinctive sorts of cryptocurrency. One of the most used terms in the metaverse is NFTs.
The Non-Fungible Tokens (NFTs) are unique cryptographic tokens and cannot be
duplicated on a blockchain. NFTs can be used to represent real-world items that are
collectible digital assets that hold value in the same way that physical assets do; for
example, a piece of land in metaverse comes under NTF.

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How metaverse carries the idea of cryptocurrency?
Beside AR and VR technology, Blockchain also plays a crucial role in the Metaverse. It allows
you to use cryptocurrencies and NFTs to create a fully functional virtual economy where you
can buy and sell any virtual asset.
Since metaverse is built on blockchain, cryptocurrencies also use the same technology.
Therefore, it will be the most popular form of payment in the metaverse world. Using
cryptocurrency will be the simplest, most convenient, and least expensive method to embark
on a global metaverse shopping trip. You may use your cryptocurrency at any store, regardless
of where it is located. You won't waste money on international communication or transaction
costs if you use crypto, and most stores in the metaverse accept all major cryptocurrencies.

In this way, investment and speculation in the market will continue to flow, and the total value
of the industry related to the Metaverse has now reached about 714 million US dollars. In the
future, running the metaverse will probably need to include a large number of NFTs,
cryptocurrencies and NFT-related products will be used in the future virtual world. It can be
used, leased and bought and sold in the metaverse, which requires the use of a large number of
cryptocurrencies to promote the market’s investment interest in cryptocurrencies.

Which organization adopt this idea?

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