From interaction with your favorite childhood cartoon character to racing the latest sports car model while King Kong chases after you; the metaverse offers diverse possibilities. If you have been keen on following crypto news, you must have come across the term metervese; especially in connection to NFTs and the blockchain in general. Cinemas and literature have created stories around the metaverse, for example, “Ready Player One” that shows metaverse as the future.
Facebook involvement in the metaverse space resulted in even more debates around the topic. The metaverse is considered a huge opportunity for the future growth of crypto assets and for blockchain technology. That said, the metaverse promises augmented and virtual reality experience that exceeds what the physical world has to offer. Well, in such an environment there’s a need for security and protection of the private information of the users. So, can the blockchain and the crypto space offer a better experience of the metaverse?
The word metaverse was first mentioned in the novel ‘Snow Crush’ by Neal Stephenson. In this case, the metaverse is described as an imaginary realm that can be accessed publicly across the world. In the novel, this imaginary realm is projected through augmented reality goggles.
In recent discussions, metaverse refers to a virtual world in which people can interact and move around, developers can build things like parks and buildings. It’s compared to a limitless augmented reality. Metaverse would go a long way in making online interactions more life-like.
Metaverse in connection to blockchain
Just like any other technologies that have come up before; they’re not meant to be used or experienced in isolation. The potential of the technologies is enhanced when they are used together, for example, AI and IoT. In the same way, the metaverse and blockchain have features that complement each other making them a possibly revolutionary combination. Features of the blockchain that make it useful in the metaverse include immutability, self-identity authentication, and decentralization.
Let’s see some areas in which both the metaverse and blockchain can be used.
So far, gaming is the most exciting use case for the metaverse. Also, the advancement in innovation currently happening in the gaming industry is majorly driven by blockchain technology.
There are several blockchain-based metaverse games. The most popular metaverse game is Sandbox. Sandbox is based on the Ethereum blockchain and presents a virtual world in which the users can play and earn some money. The game offers rewards for the users who participate in the ecosystem. Additionally, players can develop their games within this metaverse. In addition, the sandbox brings NFTs into the system. The developers own their creations in the form of NFTs.
Another blockchain-based metaverse game is Axie Infinity. This game was launched in 2018 but gained popularity recently. The game is built on the blockchain and the players are rewarded in NFTs. The game is designed like Pokeman, and the users train to fight with digital creatures against other digital creatures. It’s said that some of the best users earn up to $250.
If metaverse lives up to the hype, the gaming industry might just explode!
You can easily imagine the role cryptocurrencies would play within the metaverse. Cryptocurrencies exist virtually and completely untethered to the physical world. It would be the most convenient mode of payment in the metaverse.
The metaverse is meant to allow for activities such as playing, socializing, and working. You would immerse yourself in the metaverse environments alongside your friends while seating in the comfort of your home. As human nature dictates, shopping and transactions will be an unavoidable part of this metaverse world if it is to seem real. Well, a virtual world needs a virtual currency.
There is already some progress as far as the metaverse and cryptocurrencies are involved. A while ago someone bought a virtual land worth $2.4 million in Decentraland using Mana, a cryptocurrency. Apart from land, people will be able to buy the digital versions of anything they would buy in the physical world. Some governments are already showing interest in the metaverse, for example, Barbados’s recent move to open a metaverse embassy through Decentraland.
This is just the beginning of how cryptocurrencies could be used within the metaverse. There’s a possibility of going a step further and including aspects of decentralized finance; which is enabled by blockchain technology and cryptocurrencies. You can expect to find concepts such as lending, investing, and trading within the metaverse.
The connection between the metaverse and cryptocurrencies has an opportunity to grow and evolve to a great extent.
The description of what the metaverse is included access by the public. This brings the discussion to whether the metaverse will be centrally controlled or decentralized. Since the possibility of the metaverse is still a speculation, there could be different outcomes.
There is a possibility of the existence of both publicly owned metaverses, controlled by DAO communities as well as private metaverses owned and controlled by private companies or corporations. Decentralization is the concept behind the blockchain. For the metaverse to achieve decentralization, blockchain has to be a part of it.
Will the Facebook Rely on the Blockchain?
According to Mark Zuckerberg’s announcement, issues such as safety, security, interoperability, privacy, and open standards will be at the core of the metaverse. These are features that can be provided through the blockchain. However, the announcement didn’t include any plans for blockchain in connection to the metaverse.
Notably, Facebook already has the necessary infrastructure to include blockchain in its metaverse. Facebook has its digital currency; Libra, which was created in 2019. Combining the metaverse and blockchain would be a crucial move in improving the facebook users experience.