Industrial Metaverse Primed To 3x Consumer, Enterprise Applications

The machine economy will shake the status quo for intelligent device makers, and Web3 make the benefits accessible to all

article-image

ProStockStudio/Shutterstock.com modified by Blockworks

share

In the crypto and blockchain space, the “machine economy” will emerge this year as one of the most promising opportunities for consumers, businesses, and enterprises.

The metaverse is one of the four major machine economy use cases and the one with the most potential to unlock a multi-trillion-dollar economy for users, businesses, and smart device makers.  

Out of the three metaverse sectors — consumer, enterprise, and industrial — the latter has more potential.

The industrial metaverse, a hot topic during this year’s World Economic Forum (WEF) summit in Davos, is set to outgrow the rest by at least threefold due to its wider range of applications, such as advanced training, industrial simulations, medicine and surgery, among many others. It combines immersiveness, real-time data, and digital twins to create new business models and accelerate digitalization.

And while technologists try to figure out how the metaverse will impact businesses and consumers, the industrial metaverse has already transformed how we design, manufacture, and interact with physical entities across industries.

One of the industrial metaverse’s critical applications is digital twins, a virtual replica of a product or process used to predict how the physical entity will perform throughout its lifecycle.

BMW, for example, created a virtual twin of its production plant in Bavaria before building the physical facility. Boeing uses a digital twin development model to design its airplanes. The government of Singapore even created a digital representation of the Southeast Asian nation —  Virtual Singapore — to support its policy decisions and test new technologies.

However, challenges remain. One of the puzzle pieces of the industrial metaverse is to connect edge devices and trusted data flow with the digital twins to create near real-time simulation and prediction for real-world situations.

That’s where Web3 comes in.

Machine economy, the next digital frontier

The metaverse showed tremendous growth in 2022 despite the global economic slowdown. Experts believe it will continue to grow significantly — the WEF, for instance, predicts the market will reach $800 billion in 2024. 

According to Deloitte, the global metaverse market could grow to $13 trillion in the next seven years. McKinsey states that metaverse is a massive business opportunity that companies should pay attention to because it has the potential to grow to $5 trillion by 2030.

The machine economy represents an era of automation driven by billions of intelligent, connected and economically independent machines interacting and transacting with each other on behalf of people and businesses, unlocking trillions of dollars in business value.

Vast amounts of user data — which today has become the most valuable commodity worldwide — are powering this thriving new Internet of Things (IoT) frontier which, according to PwC, will contribute to 70% of the global gross domestic product in the next seven years.

Within that frontier, the machine economy — which combines distributed ledger technology, such as blockchain, with artificial intelligence and machine learning — will transform the IoT industry, according to research conducted by two leading tech firms, IoTeX and Siemens, published by the Industrial IoT Consortium.

Benefits and challenges

While IoT is already a fast-growing sector, blockchain or Web3 democratizes the multitrillion-dollar machine economy, benefiting intelligent device security, scalability, transparency, efficiency, speed and automation.

A chief problem with current IoT systems is their security architecture, with a centralized model managed by a central authority, making it highly susceptible to a single point of failure. Blockchain addresses this problem by decentralizing the decision-making process into a consensus-based network of devices.

The most visible challenges are that Web3 may not be accessible to advanced gadgets, it needs to become more user-friendly, and — due to a lack of understanding and education — it is still difficult for authorities to regulate, potentially leading to an increase in cybercrime.

Other challenges are for countries and organizations with legacy systems, which are difficult and expensive to replace. And social and human labor concerns still loom over the potential for digital automation because it is clear that decision-making AI and machines will be the primary driver of economic growth in the coming years.

Paradigm shift

The machine economy will shake the status quo for intelligent device makers and users. The combination of Web2 businesses and their IoT market footprint, plus a vibrant, ultra-dynamic environment of Web3, creates the perfect ground for significant disruption. In this context, the speed of adoption will once again be the primary driver for success.

However, to embrace the machine economy successfully and build a reliable and sustainable position in the future, business owners should consider several factors, including business model fairness and transparency, as well as the effectiveness of customer engagement strategies. 

Also, the robustness of token economy models is needed — critical for incentivizing all stakeholders in a machine economy ecosystem. With these factors in place, we can ensure long-term sustainability and steady growth of machine economy businesses.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million