Spatial Computing Expert: AI Didn't Contribute to Metaverse's Decline

Metaverse, NFT Decline Not a Coincidence

In written responses shared with Bitcoin.com News, Ramirez attributes the diminished interest in the metaverse to a lack of applications demonstrating value to everyday users. He argues that many existing applications have not fully showcased the metaverse’s transformative potential beyond gaming and niche experiences.

Ramirez meanwhile views the simultaneous decline in interest for both the metaverse and non-fungible tokens ( NFTs) as no coincidence. He contends that the two were interconnected, needing each other to demonstrate value. He also argues that their failure to deliver on initial promises resulted in a mutual decline.

When discussing the role of Decentralized Physical Infrastructure Networks (Depins) in virtual and augmented reality, Ramirez praises their new approach, which he says “perfectly aligns with the unique demands of these immersive technologies.” Depin networks, according to Ramirez, not only reduce latency but also improve the quality and responsiveness of spatial computing experiences.

Looking six years ahead, the Mawari CEO predicts spatial computing will become a fundamental aspect of daily life. However, he emphasizes the need for advancements in hardware, such as lighter and more powerful AR glasses. Additionally, software and AI improvements are crucial to creating more intuitive and personalized spatial experiences.

Below are the Mawari CEO’s answers to all the questions sent.

Bitcoin.com News (BCN): Metaverse was the talk of the town around 2021, reaching a peak at the beginning of 2022 before giving way to the rising AI trend. Since then, many industry experts claimed the metaverse is dead. Does the popular perception of the metaverse reflect the builder activity or are the two detached? What is your assessment of the metaverse trend over the past four years?

Luis Oscar Ramirez (LOR): The surge of interest in the metaverse can be traced back to a pivotal moment: Facebook’s rebranding to Meta. Suddenly, every industry and individual sought to define the metaverse for themselves—a concept so broad and abstract that it invited countless interpretations. For the web3 industry, this often meant envisioning virtual worlds accessible through 2D screens, whether on smartphones or computers. In my view, that definition was far too narrow, and it’s easy to see why perceptions shifted towards AI as the next big thing.

To truly understand the metaverse, we need to look back to its origins. The term “ Metaverse” was coined by Neal Stephenson in his 1992 science fiction novel Snow Crash. In that novel, the Metaverse was not just a virtual reality space; it was a successor to the internet—a collective virtual shared space created by merging virtually enhanced physical reality with persistent virtual reality. It encompassed all virtual worlds, augmented reality, and the internet itself. Today, we see this as a continuum that spans Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR), collectively known as “XR,” or more recently rebranded by Apple as Spatial Computing—a term that, interestingly enough, was also coined in 1992.

When people say “the metaverse is dead,” they’re often referring to the overhyped concept of 3D worlds viewed on 2D screens. And yes, many of those concepts failed because they didn’t offer a lasting value proposition or viable monetization strategies. As the initial excitement faded, so did user engagement.

But if we talk about the broader spectrum of XR or Spatial Computing, it’s clear that it’s anything but dead. Major tech firms continue to pour billions into this space, convinced that it represents the next computing platform and a major paradigm shift. Meta has pivoted to the term Mixed Reality, while Apple prefers Spatial Computing. I believe “Spatial Computing” is the more fitting term—it captures the evolution from interacting with 2D screens to engaging directly with 3D spaces and environments in the real world.

Beyond Meta and Apple, companies like Google, Microsoft, Samsung, and Sony have made significant strides in 2024. Meanwhile, the developer community is more vibrant than ever. The recent Augmented World Expo in California saw its largest turnout to date, brimming with energy and discussions about real projects with real monetization potential. The XR industry is a close-knit community that has been quietly but steadily growing, often overlooked but never stagnant.

Regarding AI, I would argue that Spatial Computing and AI are two technologies with significant intersections. Why? Because the best interface for interacting with AI is through Spatial Computing. Imagine digital assistants seamlessly integrated into your glasses—it’s a more intuitive, natural way to engage than using a phone or a computer. Additionally, Spatial Computing is heavily reliant on computer vision and machine learning—which are also forms of AI. In short, just like with any hype, the emergence of ChatGPT has brought AI to the forefront of everyone’s mind, but that’s just scratching the surface—there’s much more to it. As our interactions with AI deepen, so will our adoption of spatial computing.

BCN: Some argue that emerging technologies like artificial intelligence (AI) contributed to the decline in interest and investment in the metaverse. However, others believe the metaverse’s lack of compelling applications was a primary factor. What, in your opinion, is the real reason? What other factors do you think influenced the diminished interest in the metaverse?

LOR: I believe the idea that AI has contributed to the decline in interest and investment in the metaverse is misguided. In reality, AI is a powerful catalyst for innovation within the metaverse, enhancing user experiences and making digital interactions more natural, intuitive, and engaging.

The real issue behind the diminished interest in the metaverse is the current lack of compelling applications that clearly demonstrate its unique value to everyday users. Too many existing applications have yet to fully showcase the metaverse’s transformative potential beyond gaming and niche experiences. They haven’t yet delivered the “must-have” experiences that capture the imagination of the broader public.

But there’s a significant opportunity here. As AI continues to evolve and seamlessly integrate with Spatial Computing, it has the potential to breathe new life into the metaverse—aligning with Neal Stephenson’s original vision. Spatial Computing and AI can make these experiences more accessible, more engaging, and, importantly, more valuable to a much wider audience. This is where we can expect to see the real transformation and renewed interest in the metaverse.

BCN: It is worth noting that the metaverse hype coincided with the hype in non-fungible tokens ( NFTs), as they served to extract value from the emerging metaverse protocols, representing the fuel that powered the metaverse. Considering how both narratives faded simultaneously, which one of the metaverse and NFTs was responsible for the sustainability and subsequent decline? Or was the simultaneous collapse of both technologies a mere coincidence?

LOR: The simultaneous decline in interest for both the metaverse and NFTs was no coincidence; it was the result of interconnected dynamics. The initial excitement around NFTs was largely fueled by speculative investments and the promise of digital ownership within the metaverse. This hype sparked early interest and value extraction from metaverse platforms. However, the lack of compelling, practical applications and sustained user engagement in both arenas led to a rapid decline in interest.

The sustainability of these technologies was inherently linked. NFTs needed the metaverse to showcase their true value, while the metaverse depended on NFTs to establish a digital economy. When both technologies failed to deliver on their initial promises, interest in each began to fade. This decline wasn’t caused by one technology dragging down the other; instead, it highlighted how closely their successes and failures were intertwined.

BCN: What is extended reality (XR) and how does it differ from augmented reality and virtual reality? Could you explain to our readers how XR could help shape the spatial computing of tomorrow?

LOR: XR is a powerful umbrella term that captures the full spectrum of immersive technologies—Virtual Reality (VR), Augmented Reality (AR), and Mixed Reality (MR). While AR adds digital elements to the real world and VR immerses users in entirely virtual environments, XR represents the entire continuum of these experiences and everything in between. It’s about fusing the physical and digital worlds to create experiences that are more dynamic, interactive, and immersive—what Apple has recently called Spatial Computing.

XR is pivotal in shaping the future of spatial computing because it’s not just about seeing; it’s about engaging, interacting, and immersing ourselves in new realities. By bridging the gap between the real and virtual worlds, XR unlocks more interactive and richer experiences that go beyond the flat, limited confines of 2D screens.

As XR evolves, it will redefine the next computing platform, opening up transformative opportunities across industries—from entertainment and education to healthcare and beyond. We’re not just talking about new experiences; we’re talking about a fundamental shift in how we interact with technology and the world around us.

BCN: Your project Mawari is an automated platform that provides simplicity for AR app deployment and scalability. Could you briefly explain the basic functionalities of Mawari, highlighting how the solution can contribute to catalyzing the spatial computing sector?

LOR: Mawari technology is built to revolutionize the deployment and scaling of spatial computing applications, directly driving growth in this transformative sector. We offer a suite of powerful tools and solutions that enable developers and content creators to deliver high-quality, immersive spatial experiences with ease.

At the heart of our solution are two key components: the Spatial Streaming SDK and the Mawari Network. The Spatial Streaming SDK is a robust toolkit designed to integrate seamlessly with popular development environments like Unity and Unreal Engine. It empowers creators to focus on what they do best—crafting engaging and innovative content—while we take care of the backend complexities. This SDK reduces friction in the development process by streamlining workflows and removing the need for deep expertise in areas like cloud streaming and infrastructure management.

The Mawari DePIN Network, meanwhile, is a decentralized, GPU-powered content delivery network specifically designed for spatial computing. Unlike traditional CDNs, our DePIN is optimized for the real-time demands of 3D content streaming. It leverages a globally distributed network of GPU nodes, strategically positioned near end users to ensure low latency and optimal performance. This architecture enables the efficient distribution and scaling of spatial content, delivering seamless, high-quality experiences to users anywhere in the world.

Together, these components provide a powerful platform for developers, simplifying the deployment of spatial computing applications and enabling them to scale efficiently as demand grows. Mawari’s approach doesn’t just tackle the technical challenges—it’s about making spatial computing more accessible and driving its adoption on a global scale. As the industry evolves, we’re positioning Mawari to be at the forefront, shaping the future of spatial computing by fostering innovation and breaking down barriers for developers.

BCN: Decentralized Physical Infrastructure Networks (Depin) are said to offer a promising approach to building a more resilient, efficient, and equitable infrastructure ecosystem. Can you shed light on the role of Depin in virtual reality, augmented reality and mixed reality?

LOR: Decentralized Physical Infrastructure Networks (DePIN) have a transformative role in the realm of virtual reality (VR), augmented reality (AR), and mixed reality (MR)—collectively known as spatial computing. DePIN offers a new approach that aligns perfectly with the unique demands of these immersive technologies.

In our experience with Mawari, we’ve seen that traditional, centralized networks struggle to deliver the high-quality, low-latency experiences required for compelling spatial computing applications. Whether it’s streaming a 3D hologram in real-time or providing an augmented overlay on the real world, these experiences demand a robust infrastructure capable of handling massive amounts of data with minimal delay.

This is where DePIN comes into play. By decentralizing the infrastructure and leveraging a global network of GPU-powered nodes, DePIN allows for the distribution of compute power closer to the end user. This not only reduces latency but also improves the quality and responsiveness of spatial computing experiences.

Moreover, DePIN democratizes access to advanced spatial computing technologies. Traditional models often require significant upfront investment in infrastructure, which can be a barrier for smaller developers and independent creators. With DePIN, we remove these barriers, allowing a broader range of innovators to contribute to and benefit from the spatial computing ecosystem. This fosters a more equitable and diverse development environment, accelerating innovation across the board.

Additionally, DePIN networks offer resilience. By decentralizing the infrastructure, they avoid single points of failure and create a more robust and reliable ecosystem for delivering spatial computing experiences.

BCN: Facebook’s metaverse project faced regulatory challenges following its proposed creation of a cryptocurrency (Diem, formerly Libra) that would also function as a transaction vehicle for its metaverse project. Mark Zuckerberg had to appear before Congress to defend the project before eventually abandoning it. How much impact do you think crypto regulation or the absence of a clear regulatory approach had on the budding metaverse sector?

LOR: It is clear that the lack of defined crypto regulations has significantly slowed the development of the metaverse by creating uncertainty and increasing the risks associated with integrating digital assets into virtual environments. This uncertainty makes it more challenging to achieve the level of interoperability necessary to fully realize the metaverse vision, affecting its early stages.

The challenges faced by Meta’s Diem project and similar initiatives, such as TON, BNB, XRP, and Coinbase’s Lend product, underscore the difficulties companies encounter in navigating this uncharted regulatory landscape. Consequently, businesses must invest heavily in compliance, legal advice, and potentially adapt their business models to comply with various jurisdictional requirements, which can be prohibitively expensive for smaller or newer companies, ultimately stifling innovation.

As the XR and Spatial Computing industries continue to break down barriers in how we experience and consume content globally, it is crucial that this progress happens in a way that respects privacy and security at scale.

BCN: As a matter of projection, where do you see the spatial computing industry by 2030?

LOR: By 2030, I believe the spatial computing industry will have evolved into a fundamental aspect of daily life, much like smartphones and the internet are today. We are moving toward a future where the boundaries between the physical and digital worlds are increasingly blurred, and spatial computing will be at the heart of this transformation.

Several key developments will drive this evolution. First, advancements in hardware—such as lighter, more powerful AR glasses will make spatial computing more accessible and comfortable for everyday use. These devices will integrate seamlessly with other personal technology, creating a ubiquitous computing environment where digital information is contextually overlaid onto the physical world.

Second, improvements in software and AI will lead to more intuitive and personalized spatial experiences. This will enable more natural interactions with digital content, whether it’s through voice, gestures, or even thoughts, making spatial computing a more integral part of our daily routines.

Moreover, the infrastructure supporting spatial computing will be vastly more robust by 2030. Decentralized Physical Infrastructure Networks (DePIN) will play a crucial role in providing the scalability and resilience needed.

What are your thoughts on this interview? Share your thoughts in the comments section below.