Metaverse: what it is, how it works and the future of the internet

The metaverse is a persistent, shared three-dimensional virtual universe that fuses virtual reality, augmented reality, blockchain and artificial intelligence. In it, millions of people use avatars to work, play and trade in real time, in an immersive evolution of today's internet.

• What is the metaverse?
• How does the metaverse work?
• How can the metaverse change the internet?
• Which companies invest in the metaverse?
• How to enter the metaverse?
• What are the main metaverses today?
• What technologies are behind the metaverse?
• How does the metaverse crypto economy work?
• How to invest in the metaverse?
• What are the challenges and opportunities of the metaverse?

What is the metaverse?

The metaverse is a shared, three-dimensional and persistent virtual space, where users represented by avatars interact with each other and with digital objects in real time. Unlike the internet of pages and screens, it proposes an immersive layer in which the person feels presence inside the environment, not just observes it.

The term was coined by Neal Stephenson in the novel Snow Crash, published in 1992, in which the metaverse appears as a virtual reality inhabited by millions of people simultaneously. What separates the metaverse from conventional virtual reality (VR) is precisely this collective character: instead of a solitary experience, it is a living and continuous social world.

The metaverse can be accessed by VR devices (such as Meta Quest or Apple Vision Pro) and augmented reality (AR) devices, such as Microsoft's HoloLens, in addition to regular computers and smartphones. It is, therefore, a convergence of immersion technologies with the web infrastructure, not a single product or platform.

How does the metaverse work?

The metaverse works as a constantly evolving virtual environment, sustained by technologies such as cloud computing, artificial intelligence (AI) and the internet of things (IoT). Each user connects their device to servers that render shared 3D worlds, synchronizing avatars, objects and interactions in real time.

The metaverse is a living space, fed by a community of developers who create new digital objects, interactions and scenarios. As more people join, the environment becomes richer and more complex, in a network effect similar to the growth of social networks. Much of this infrastructure runs on scalable cloud services, a topic we deepen in the comparison between AWS, Azure and GCP cloud services.

The metaverse is also a commercial space. It opens opportunities for companies to create products, services and new forms of advertising and marketing within virtual worlds. This economic dimension is one of the engines behind the billions invested in the sector, as we will see below.

How can the metaverse change the internet?

The metaverse can transform the internet by replacing flat interactions with immersive experiences: instead of text, images and videos, we will use avatars and digital representations to move and converse in three-dimensional virtual spaces. This creates a much stronger sense of presence than reading or watching content.

The consultancy McKinsey estimates that the metaverse can generate up to US$ 5 trillion in global economic value by 2030, with electronic commerce accounting for more than half of that total, according to the report Value creation in the metaverse. This indicates why so many companies are racing to occupy this territory early.

For businesses, the metaverse allows creating exclusive products and services, virtual stores and engaging brand experiences. A consumer could try on clothes on an avatar before buying, attend a concert inside a game or participate in a virtual corporate event. Still, the metaverse remains under development and faces technical, social and ethical challenges, such as interoperability between platforms, user privacy and the creation of inclusive spaces.

Which companies invest in the metaverse?

The companies that invest the most in the metaverse are Meta, Microsoft, Epic Games, NVIDIA, Decentraland and Roblox, each with a distinct bet on hardware, social platforms, games or decentralized infrastructure.

1. Meta – Meta, owner of Facebook, is the biggest bettor in the sector. Its Reality Labs division has accumulated more than **US$80 billion in operational losses since 2020**, including US$ 17.7 billion in 2024 alone, according to financial results reported by CNBC. The company develops Horizon Worlds and the Quest headset line.
2. Microsoft – Explores the corporate metaverse through Microsoft Mesh and mixed reality, with a focus on collaboration and immersive meetings.
3. Epic Games – The creator of Fortnite turns the game into a platform for concerts, premieres and social experiences, leveraging its Unreal Engine.
4. NVIDIA – Provides the sector's graphical foundation with GPUs and AI; the role of these cards in immersive computing is detailed in how GPUs shaped the era of Artificial Intelligence.
5. Decentraland – A platform based on blockchain whose land and items are registered as tradable digital assets.
6. Roblox – A true community-driven metaverse, where the users themselves create the games.

How to enter the metaverse?

To enter the metaverse, choose a platform, create an account, customize your avatar and access the virtual world via the compatible device. Some experiences run on smartphones and browsers, while others require virtual or augmented reality headsets for full immersion.

The most popular virtual reality devices today include Meta Quest, HTC Vive, PlayStation VR and Apple Vision Pro. They use motion sensors and tracking to place the user inside the virtual environment, usually with hand controllers. Augmented reality devices, such as HoloLens and Magic Leap, project digital objects onto the real world.

It is worth remembering that some virtual worlds are free, while others charge an access fee or sell items and land within the environment. Check the policies and hardware requirements of each platform before starting. For a step-by-step guide, see our guide on how to enter virtual universes.

What are the main metaverses today?

The main active metaverses are Roblox, Decentraland, Second Life, Fortnite, Minecraft and Meta's Horizon Worlds. Each combines 3D worlds, avatars and its own economy, but differs by audience, base technology and degree of decentralization.

Roblox is one of the most expressive cases of mass adoption: the platform ended 2025 with 127 million average daily active users, spread across more than 180 countries, according to its annual report filed with the SEC. Decentraland uses the MANA cryptocurrency for land purchase and governance, while Second Life, launched in 2003, proved that virtual economies can last decades. Meanwhile, Fortnite and Minecraft show how games can evolve into persistent social spaces.

What technologies are behind the metaverse?

The metaverse is the fusion of several technologies that together create immersive and interoperable virtual environments. The main ones are virtual reality, augmented reality, blockchain, artificial intelligence and cloud computing, each responsible for a layer of the experience.

Virtual and augmented reality

Virtual reality (VR) uses headsets and sometimes gloves to immerse the user in a fully digital environment, creating the sensation of being physically inside the metaverse. Practical applications of this immersion go beyond entertainment, as shown by the use of virtual reality in rehabilitation. Augmented reality (AR), in turn, overlays digital elements onto the physical world via smartphones or headsets, mixing the virtual with the real. You can deepen the concept in the augmented reality glossary entry.

Blockchain, AI and cloud

Blockchain sustains the digital ownership of the metaverse, registering unique assets and guaranteeing authenticity without intermediaries. Artificial intelligence animates characters, moderates environments and generates content, while cloud computing delivers the processing power needed to render 3D worlds on any device. It is this combination that allows the metaverse to scale to millions of simultaneous users.

How does the metaverse crypto economy work?

The metaverse economy is driven by cryptocurrencies and unique digital assets called NFTs (Non-Fungible Tokens), which represent everything from virtual land to collectible items. Users buy, sell and trade these assets, creating a real market within virtual worlds.

Each platform usually has its own currency. Decentraland uses MANA; The Sandbox uses SAND; Enjin uses ENJ; and Axie Infinity uses AXS. An NFT registered on the blockchain works as a token that proves ownership of a virtual good — for example, a plot of land or a piece of digital art — in a verifiable and transferable way.

This economic layer is what sets the metaverse apart from a traditional game: the goods purchased truly belong to the user and can be resold outside the original platform. At the same time, it inherits the risks of the crypto market, such as volatility and scams, and depends on trust in the blockchain networks that support it.

How to invest in the metaverse?

Investing in the metaverse means allocating resources in assets linked to the growth of this market, mainly through three paths: sector cryptocurrencies, thematic investment funds and virtual land. Each option has a different risk and liquidity profile and requires research before any contribution.

1. Cryptocurrencies – Coins like MANA, SAND, AXS and ENJ track the performance of specific platforms. Analyze the project behind each token, its history and the risks of volatility before buying.
2. Investment funds – Thematic funds bring together metaverse companies and projects in a single basket, offering diversification and professional management. Evaluate the performance history and administration fees.
3. Virtual land – Some metaverses allow buying digital plots and reselling them. The appreciation potential depends on the platform's adoption and the virtual location of the land.

Like any investment, the metaverse involves risk of loss. Research, consider your investor profile and seek financial guidance before deciding. At CodeCrush, we reinforce that enthusiasm for technology never replaces risk analysis.

What are the challenges and opportunities of the metaverse?

The biggest challenges of the metaverse are the lack of interoperability between platforms, data privacy and accessibility, while the opportunities range from new forms of education to unprecedented models of entertainment and global social connection.

Interoperability is still limited: an avatar or item bought on one platform rarely works on another. Privacy is a concern because immersive environments collect sensitive data, such as movements and physiological reactions. And accessibility is uneven, since not everyone has VR/AR devices or adequate connectivity, which can deepen exclusions. Solving these issues is a prerequisite for broad adoption.

On the other hand, the opportunities are broad. The metaverse makes immersive education and training, interactive entertainment and new communities that connect people from different cultures in real time viable. It also opens up marketing and commerce fronts, a theme that connects with our article on information technology revolutionizing marketing. The balance will depend on how the industry weighs innovation, security and inclusion.

Conclusion

The metaverse is not a finished product, but a direction of convergence: virtual reality, blockchain, AI and cloud moving toward a more immersive internet. Meta's billion-dollar figures and Roblox's millions of users show that the bet is serious, even though the return is uncertain and the horizon long. For developers and the curious, the moment is to experiment and learn the base technologies — VR, AR and blockchain — without being carried away by the hype. Those who understand the foundations today will be ahead when the metaverse, in some form, consolidates.