BANKING IN METAVERSE

METAVERSE:

The term "metaverse" refers to a virtual world, or a collection of virtual worlds, that exist in a simulated environment and can be accessed and interacted with by users via the internet. The concept of a metaverse is often associated with science fiction, but it is also being explored in the context of virtual and augmented reality technologies. In the metaverse, users can interact with each other, as well as with virtual objects and environments, in real-time. The metaverse is also sometimes seen as a potential future version of the internet, where users can interact with each other and with digital content in immersive, 3D spaces.

EXAMPLE FOR METAVERSE:

One example of a metaverse is Second Life, a virtual world launched in 2003 that allows users to create avatars and interact with each other and with virtual objects and environments in a 3D space. Users can purchase virtual land, build homes and other structures, and participate in a variety of activities, such as shopping, socializing, and attending virtual events. Other examples include online gaming worlds like World of Warcraft, massively multiplayer online games like Eve Online, and virtual reality platforms like VR Chat.

Another example is the metaverse being developed by companies like Facebook, Google and Microsoft, which involve the integration of virtual and augmented reality technology with social media platforms, allowing users to interact with each other and with digital content in immersive, 3D spaces.

VIRTUAL REALITY:

Virtual reality (VR) is a computer-generated simulation of a three-dimensional environment that can be interacted with using specialized equipment, such as a headset with a screen or gloves fitted with sensors. The goal of VR is to create a sense of immersion, or the feeling that the user is physically present in the virtual world. This technology is often used in gaming, education, and training, as well as in various other fields such as art, design, and therapy.

AUGMENTED REALITY:

Augmented reality (AR) is a technology that superimposes digital content, such as images, videos, or animations, on top of a live view of the real world. The goal of AR is to enhance or augment the user's perception of the world around them, rather than creating a completely artificial environment like in virtual reality (VR).

Unlike VR, which requires the user to be fully immersed in a virtual environment, AR allows users to see and interact with the real world while also interacting with digital content. This makes AR a popular choice for applications such as education, gaming, and product visualization.

Examples of AR include Pokémon Go, and IKEA Place where you can see how furniture looks in your room before buying it.

BANKING IN METAVERSE:

Banking in the metaverse refers to the concept of providing financial services within virtual reality or augmented reality environments. This could include things like creating virtual bank accounts, making digital currency transactions, or even applying for loans. As the metaverse becomes more prevalent, it is likely that traditional financial institutions will look for ways to adapt and provide services within this new digital landscape.

METAVERSE BANKING IN INDIA:

The concept of metaverse banking refers to the use of virtual reality and other technologies to provide banking services in a virtual world. In India, it is a relatively new concept, but some companies are exploring the use of virtual reality to create new banking experiences for customers. However, there is no official metaverse banking service yet in India. As of now, it's still in the experimentation phase.

MAJOR POINTS TO BE DECODE IN METAVERSE BANKING:

• The increasing prevalence of virtual reality and augmented reality environments makes these "metaverse" platforms being used for a wide range of activities, including gaming, socializing, and even commerce.
• The traditional financial institutions are starting to explore opportunities to provide services within the metaverse, such as creating virtual bank branches or developing digital currencies that can be used within virtual worlds.
• Some of the potential benefits of banking in the metaverse are stated as increased accessibility, convenience, and security, as well as the ability to reach new customers and markets.
• In order to establish a robust and sustainable banking infrastructure within the metaverse, regulatory and compliance issues, fraud prevention, and building trust with customers are some of the challenges that will need to be overcome.
• The technologies that will be required to enable banking in the metaverse such as blockchain, smart contract and cryptocurrency.