The metaverse meets Web3: the state of convergence in the UK

Changing terminology is not an indicator of progress

Over the course of the last 12-18 months, immersive experiences, visualisation, gaming,
fashion, and virtual goods have evolved into a broader global ambition to build ‘the metaverse’,
even though there has been no sudden change in the technologies being used, or their rate of
adoption.

In reality, significant change to how people access and use online services will not come
simply through increased adoption of virtual reality headsets or augmented reality glasses.
Significant change will happen when (and if) immersive applications converge with deep
technologies, such as blockchain.

Who will innovate and how?

The convergence of cyber-physical infrastructure (CPI) with metaverse and Web3 technologies
promises exciting new business models. This independent Digital Catapult study has looked at
metaverse-Web3 convergence within UK industry, and at how UK companies are exploring
opportunities and perceiving potential risks.

Who is building what?
How are changes being navigated?
And how will those left behind react?

This report presents a neutral assessment of the opportunities and challenges that UK
companies are encountering, and maps out the current state of play of Web3 and metaverse
convergence, including emerging use cases, benefits and potential blockers. It also sets out
our position on the main characteristics of Web3 and metaverse technologies, as they applied
to our research activities.