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Highlights from McKinsey’s “Value Creation In The Metaverse” Report + Web3 for Skeptics by Brainsy’s CIO

Medium | Lou Kerner | Aug 29, 2022

real business of the virtual world - Highlights from McKinsey's “Value Creation In The Metaverse” Report + Web3 for Skeptics by Brainsy's CIOMcKinsey recently published a comprehensive 77 page report titled “Value Creation In the Metaverse — The Real Business of The Virtual World.” Seven McKinsey partners were credited as the writers of the report, which included interviews with 13 senior “metaverse experts”, input from the 60 members of McKinsey Technology Council, and surveys of more than 3,400 consumers.

The ultimate conclusion of the report is that the metaverse is simply too big of an opportunity for execs to ignore, and too impactful on society for regulators to not start taking action. That said, at 77 pages, most people won’t take the time to read it. So below are my 8 highlights:

The Definition of the Metaverse Continues To Evolve

While the definition is still fluid , McKinsey believes that the metaverse is the next iteration of the internet, where it becomes something we are immersed in, rather than something we just view.  Regardless of one’s exact definitions of the metaverse, it has several foundational characteristics:

  • a sense of immersion
  • real-time interactivity, &
  • user agency

The Value Of The Metaverse Could Equal $5 Trillion In 2030

While others see even a bigger market (e.g. Citicorp sees an $8-$13 trillion metaverse market in 2030), McKinsey estimates a $4-$5 trillion market in 2030 and believes the metaverse represents the biggest growth opportunity in multiple industries including e-commerce ($2-$2.6 trillion), e-learning ($144-$206 billion), and the advertising market ($108-$125 billion).

3. The Technology Required To Realize The Potential Of The Metaverse Doesn’t Exist Yet

  • The report highlighted the significant technological advancements required across multiple technologies, including compute infrastructure, network infrastructure, and devices, for the potential of the metaverse to be realized.
    • For example, today, concurrency limits cap the number of players on gaming platforms. But many more users will need to be able to be online at once for the metaverse to be realized.
  • With regards to network infrastructure, high-latency “lagging” creates a sensation of video and/or audio being slow for metaverse applications that require a high rate of frames-per-second.
  • Finally, the metaverse today is largely accessed through devices with flat screens (i.e televisions, PCs, and smartphones). While McKinsey expects flat screens to continue to dominate for another five years, the metaverse needs AR/VR and eventually extended reality (XR) to achieve a increasingly immersive experiences.
    • Yet significant advancements in AR/VR are required to enable deep immersion.
    • And XR devices like contact lenses and brain-computer interfaces (e.g. Neuralink) are at least a decade away.

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Download the 77 page PDF report --> here


Brainsy | Brian Price | Aug 2022

Web3 defined - Highlights from McKinsey's “Value Creation In The Metaverse” Report + Web3 for Skeptics by Brainsy's CIO

Web3 Defined (for Skeptics) including Web2 vs Web3, Blockchain, DAOs, NFTs, Stablecoins, Crowdfunding and more

View the 54 page doc send report --> here

 


NCFA Jan 2018 resize - Highlights from McKinsey's “Value Creation In The Metaverse” Report + Web3 for Skeptics by Brainsy's CIOThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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