We have compiled the metaverse glossary to help you understand the metaverse. The metaverse is a buzzword lately. Many companies including Facebook (now Meta) are investing in this emerging technology. But do you know what’s it about? We use the following terms in discussions about the metaverse.
Augmented Reality (AR)
An example of immersive technology. AR overlays digitally-generated images onto the real world. You can use devices like a VR headset, mobile phone or tablet to overlay graphics and sounds onto their real-life environments. Some examples of AR technology include Instagram filters, Google Lens and Pokémon Go.
Avatar
An avatar is a 3D digital character that represents you in a virtual world.
Blockchain
A blockchain is an immutable platform that enables a shared record of information that is maintained and updated by a network of computers instead of a central authority. This distributed ledger uses cryptography to confirm, carry out and secure transactions. Blockchain is the technology that underpins smart contracts, cryptocurrencies, NFTs and decentralised autonomous organisations (DAOs).
Decentralised Autonomous Organisations (DAOs)
A digital organisation that is run on the blockchain through the use of smart contracts. DAOs use these contracts to set the rules for their organisation. Most metaverse projects operate like DAOs allowing users to vote on decisions.
Extended reality (XR)
XR is an umbrella term for computer-generated environments that merge the physical and virtual worlds or create an entirely virtual experience for users. The metaverse is an example of XR.
Immersive technology
Technologies that create or extend reality – an immersive experience in which you feel “in it”.
Metaverse
The metaverse is a computer world built on Web 3.0. It is a set of shared 3D virtual environments or worlds where people can engage in day-to-day activities like working, socialising, exercising and having fun as they would in the real world. The metaverse exists through a combination of a set of technologies like virtual and augmented reality, and artificial intelligence. Generally speaking, you need need a headset (like a Quest Pro or Quest 2) to participate.
Metaverse Wallet
A digital wallet that allows you to hold and make transactions with cryptocurrency. In most digital environments, a wallet will be essential to track the history of metaverse transactions in a safe and transparent environment. Examples of metaverse wallets include MetaMask, Coinbase Wallet and Alpha Wallet.
Metaverse/ NFT Marketplace
A decentralised platform that allows you to buy, sell, and exchange NFTs. Notable NFT marketplaces include OpenSea, Rarible and Nifty Gateway. These platforms are built on the Ethereum or Solana blockchains.
Mixed reality (MR)
This is an emerging technology that uses elements of augmented and virtual realities. The technology aims to blend the real world with virtual reality. People are able to interact with virtual objects using their hands.
NFT
An NFT, or non-fungible token, is a digital certificate that authenticates and establishes the ownership of physical and virtual assets. NFTs are stored on a blockchain. NFTs are unique and non-interchangeable. The inverse is cryptocurrencies, since, like money, they have objective value.
Smart contracts
Self-executing digital contracts that write terms and conditions in code. We use blockchain technology to store smart contracts.
Virtual reality (VR)
VR is an immersive experience within an environment completely generated through computer technology. VR headsets, haptic touch and environmental feedback allow users to immerse themselves in simulated realities. This enables a 360º view in a virtual world which people can move in and interact with.
Virtual World
A virtual world is a simulated version of the real world or an entirely new environment created through computer rendering technology. Virtual worlds have inhabitants and allow users to interact through avatars. Virtual worlds have their own economy. This economy runs on a marketplace. Examples of virtual worlds include Second Life and Sims.
Web 2.0
The evolution from static webpages to user-generated content and the growth of social media.
Web 3.0
The evolution of Web 2.0 and developed concepts like decentralisation, openness and greater user utility. It allows for Internet based on peer-to-peer transactions, transparency and data democracy. Technological advancements like the blockchain, NFTs, decentralised autonomous organisations (DAOs) and the metaverse form part of web 3.0.
Other glossaries
Beyond games.biz and Sensorium have also published Metaverse glossaries.