“Virtual worlds expand the realm of experiences” - a Chat With the CEO & Co-founder of Improbable, Herman Narula
Nikolai Kuznetsov
6 min read
The intersection of gaming, technology, and virtual worlds has proven an exciting battleground for developers and a thought-provoking space that asks questions about the future of digital societies, human relationships, and what it means to “experience” something. Also at this intersection is Herman Narula, CEO of Improbable, which he co-founded in 2012. Under his leadership, the company has grown from a small startup into a multinational technology company providing simulation software for virtual worlds, defense organizations, and metaverse environments. Improbable’s latest valuation was over $1bn, giving it the prized “Unicorn” status.
While many tech leaders chase short-term metaverse trends, Narula's vision extends far beyond the realms of gaming and social networks. Virtual worlds are the next frontier of human experience, drawing fascinating parallels between ancient civilizations' conceptual communities and today's digital landscapes. At least, this is the perspective he details in his book Virtual Society, which argues that humanity's search for meaning through virtual spaces is nothing new. It is something deeply woven into our cultural DNA, from Ancient Egyptian concepts of the afterlife to modern fantasy sports leagues.
Now, Narula is putting theory into practice with Somnia, an ambitious new blockchain project that promises to process over 400,000 transactions per second - a quantum leap beyond current capabilities. As the technology partner behind Yuga Labs' “Otherside” platform, Improbable isn't just theorizing about the future of virtual worlds - it's building the infrastructure to support them.
Through both his philosophical writings and technical innovations, Narula has positioned himself as a vocal advocate for community ownership and democratized virtual spaces. His criticism of short-term cryptocurrency speculation and emphasis on solving fundamental technical challenges sets him apart in an industry often criticized for prioritizing hype over substance. Now, he joins us to explore blockchain capabilities, delve into virtual societies, and examine the spaces in between.
What do you see as the key technical hurdles that need to be overcome to enable truly scalable, community-driven virtual societies?
HN: First, virtual spaces must support thousands of people interacting seamlessly, while also enabling smaller, intimate group interactions within larger gatherings. This requires advancements in scalability and real-time rendering.
Second, accessibility is vital. Virtual worlds must work across a range of devices, from headsets to mobile phones, ensuring inclusivity for all users. Interoperability is equally important, allowing communities and businesses to create and control their spaces while enabling seamless movement of people and assets between worlds. This enhances the value of virtual objects by making ownership, trade, and interaction simple. Affordability is crucial to avoid monopolies, ensuring equitable access to this technology.
Lastly, issues of identity, IP protection, and privacy require decentralized but governed systems that protect users while maintaining openness. Addressing these challenges will lay the foundation for vibrant and inclusive virtual societies.
As virtual societies grow to potentially "nation-scale" sizes, how do you foresee decentralized governance and value distribution models evolving to empower the community of users?
HN: Decentralized governance offers a new economic model based on co-ownership, shared decision-making, and collective problem-solving. However, as virtual societies grow, not every decision can be community-driven. Supporting those engaged in governance while ensuring creators and businesses feel represented will be essential. To avoid dominance by large corporations, value sharing must move beyond closed ecosystems.
The next wave of Web3 and metaverse communities will likely focus less on speculation and more on purpose, belonging, and creating meaningful value. This could revolutionize global value distribution, empowering people worldwide to participate in building a cultural industrial revolution.
Beyond gaming and social networking, what other industries could you see benefiting from the integration of blockchain and virtual world technology?
HN: Have you considered what new business models might emerge from this? Industries like sports and music, which thrive on large-scale social interaction, stand to gain significantly from integrating blockchain and virtual world technologies. Virtual worlds expand the realm of experiences, enabling gatherings and events—like virtual ballpark celebrations for Major League Baseball or K-pop launch parties—that are impossible in the physical world.
Blockchain integration unlocks a digital assets economy, moving beyond localized models to connected ecosystems where value and digital assets flow freely between platforms. This shift could empower global participation, allowing individuals to earn and create within virtual spaces accessed even on mobile devices, with the flexibility to carry their creations across worlds. In sports, leagues could scale globally, with players as equity partners in virtual spaces and fans creating businesses within them. In music, artists could connect with fans in new, revenue-generating ways, reducing their dependence on traditional touring.
These technologies could redefine industries by enabling interconnected, participatory economies.
Given the complexity of coordinating and powering massive-scale virtual environments, how important are factors like sub-second latency and extremely high TPS to user experience?
HN: In massive-scale virtual environments, where thousands of people interact simultaneously, responsiveness is critical for a seamless and engaging experience. Delays in the environment can disrupt the sense of presence or even cause discomfort. From a blockchain perspective, extremely high transactions per second (TPS) are vital to support the scale of activity these events demand.
Whether it’s facilitating interactions during a major sports game or handling transactions at a virtual concert, high TPS ensures the infrastructure can handle the load without compromising user experience.
How does Improbable's work on Somnia and its role in developing platforms like Otherside position the company to be a leader in this emerging virtual society landscape?
HN: Improbable's work on Somnia and platforms like Otherside showcases its ability to tackle the technical challenges needed for scalable virtual societies. Somnia, for example, emerged from identifying gaps in blockchain performance for high-demand virtual environments, leading to innovations designed to benefit both Improbable and others.
Similarly, MSquared focuses on scaling virtual worlds, enabling seamless user interactions, and fostering interoperability for digital assets.
These efforts are foundational to building interconnected and accessible virtual societies. By advancing infrastructure and creating metaversal experiences, Improbable is not only shaping the vision of virtual societies but also providing the tools and insights for others to innovate and build upon.
In your view, what unique technological or intellectual advantages does Somnia offer compared to other blockchain solutions in the metaverse and virtual world space?
HN: Somnia offers a unique advantage by directly addressing the critical issues limiting blockchain adoption in the metaverse and gaming industries. These include high application development costs, challenges in building interoperable communities, and the lack of economic viability for digital assets to thrive on-chain.
Existing blockchains often force compromises: either they’re too slow and costly, or they lack compatibility with the tools developers rely on. Somnia bridges this gap by combining exceptional speed—achieving up to 400,000 transactions per second—with full EVM compatibility, making it ideal for metaverse and gaming applications. Built on Improbable’s decade of distributed systems expertise, the Somnia blockchain lowers barriers like high transaction fees and limited scalability, unlocking the potential for a true digital assets economy. By delivering high performance without sacrificing flexibility, it sets a new standard for powering interconnected virtual worlds.
