The future of virtual identity in metaverse

By Sriram PH

The metaverse is a term used to describe a highly immersive 3D virtual world experience obtained through the use of a mixture of technologies such as Artificial Intelligence(AI), Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR). It presents an opportunity for leading brands in various domains like retail, banking, automotive, fashion, and home lifestyle to capitalize on new revenue streams.

The Rise of the Metaverse

The concept of the metaverse is not new, but recent advancements in technology have brought it closer to reality. It’s a vast, interconnected digital space where users can immerse themselves in a variety of experiences, from gaming to virtual work environments and social interactions. As the metaverse continues to grow, the importance of a secure and versatile virtual identity becomes paramount.

The Role of 3D Avatars

3D avatars have long been a staple of the gaming industry, allowing players to customize their in-game personas. However, their potential extends far beyond gaming. 3D avatars serve as the digital representation of users in the metaverse. These 3D avatars that are highly realistic can also be used as virtual assistants, replicating the salesperson of a brand in business-customer interactions today. They offer a bridge between the physical and virtual worlds, enabling individuals to engage on digital platforms with a sense of presence and identity.

The avatar economy is emerging as a significant component of the metaverse ecosystem. Users can buy, sell, and trade 3D avatars, clothing, and accessories, creating a thriving marketplace. According to recent data, the avatar market size and growth are as follows:

1. The global digital avatar market was valued at USD 14.34 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 47.1% from 2023 to 2030.
2. The global market for digital human avatars is anticipated to reach USD 527.58 billion in 2030 and grow at a revenue CAGR of 46.4% over that time.

Use Cases and Adoption

The integration of 3D avatars and blockchain technology is already gaining traction in various industries:

1. Gaming: Gaming companies like Unity, Ubisoft are using blockchain to secure in-game assets and allow players to trade avatars and items across different games.
2. Virtual Real Estate: In the metaverse, users can own virtual land and properties. Blockchain technology ensures transparent ownership records.
3. Education and Work: Virtual classrooms and offices are utilizing 3D avatars for lifelike interactions, with blockchain safeguarding identities and credentials.
4. Entertainment and Social Media: 3D avatars and blockchain technology are transforming the way people express themselves and connect with others online. Platforms like Decentraland, CryptoVoxels, and Somnium Space allow users to create and customize their own avatars, explore virtual worlds, and socialize with other users.
5. Healthcare and Wellness: 3D avatars and blockchain technology are enhancing the quality and accessibility of healthcare services. Patients can use 3D avatars to interact with doctors, therapists, and coaches remotely, with blockchain ensuring data privacy and security. Blockchain also enables patients to access their medical records, share them with authorized parties, and monetize their health data.
6. Art and Fashion: 3D avatars and blockchain technology are enabling new forms of artistic expression and creativity. Artists can use 3D avatars to create digital artworks, animations, and performances and sell them as non-fungible tokens (NFTs) on blockchain platforms. Fashion designers can use 3D avatars to showcase their collections, collaborate with other designers, and offer personalized clothing options to customers.

Benefits of Blockchain Integration for 3D Avatars

By leveraging blockchain technology, 3D avatars can become more decentralized, autonomous, and interoperable in the metaverse. Some of the benefits of blockchain integration for 3D avatars are:

1. Ownership: Users can have full ownership and control over their avatars and their data, as they can store them on the blockchain. Users can also prove the authenticity and provenance of their avatars using NFTs, which can certify their uniqueness and originality.
2. Interoperability: Users can use their avatars across different platforms and applications in the metaverse, as they can rely on common standards and protocols that are supported by the blockchain. Users can also transfer their avatars and attributes between different environments without losing their identity or value.
3. Customisation: Users can customize their avatars according to their preferences and needs, as they can choose from a variety of options and features that are available on the blockchain. Users can also create their own avatars using 3D modeling tools and mint them as NFTs on the blockchain.
4. Monetization: Users can monetize their avatars by selling or renting them to other users or by participating in various activities and events in the metaverse. Users can also earn rewards or incentives for using their avatars or for contributing to the development of the metaverse.

Conclusion

The integration of 3D avatars in the metaverse and digital platforms is revolutionizing the way we interact and socialize online. These lifelike representations of users enable a more immersive and personalized experience, blurring the lines between the physical and digital worlds. 3D avatars are enhancing engagement and self-expression, fostering a new era of interconnectedness in the digital realm.

The author is co-founder and CEO, DaveAI

Follow us on Twitter, Facebook, LinkedIn