The metaverse is a concept of a persistent online 3D universe that combines multiple different virtual spaces. You can think of this as a future version of the Internet. The metaverse will allow users to work, meet, play and socialize together in these 3D spaces. The metaverse does not fully exist, but some platforms contain elements similar to those of a metaverse. Video games currently offer the closest metaverse experience there is. Developers have pushed the boundaries of what a game is by hosting in-game events and creating virtual economies. Although not required, cryptocurrencies can be ideal for a metaverse. They allow to create a digital economy with different types of utility tokens and virtual collectibles (NFTs). The metaverse would also benefit from the use of crypto wallets, such as Trust Wallet and MetaMask. Additionally, blockchain technology can provide transparent and trustworthy governance systems. Blockchain, metaverse-like applications already exist and provide people with income for a living. Axie Infinity is a play-to-earn game that many users play to increase their income. SecondLive and Decentraland are other examples of how to successfully mix the world of blockchain and virtual reality applications. As we look to the future, the big tech giants are trying to lead the way. However, the decentralized aspects of the blockchain industry are allowing smaller players to participate in the development of the metaverse as well.
The connections between the financial, virtual and physical worlds have become increasingly linked. The devices we use to manage our lives give us access to almost anything we want at the touch of a button. The crypto ecosystem has not escaped this either. NFTs, blockchain gaming, and crypto payments are no longer just limited to crypto geeks. Now they are all readily available as part of a developing metaverse.
What is the definition of a metaverse?
The metaverse is a concept of an online 3D virtual space that connects users in all aspects of their lives. It would connect multiple platforms, similar to the Internet containing different websites accessible through a single browser. The concept was developed in Neal Stephenson’s science fiction novel Snow Crash. However, while the idea of a metaverse was once fiction, it now looks like it could be a reality in the future. The metaverse will be powered by augmented reality, with each user controlling a character or avatar. For example, you can take a mixed reality meeting with an Oculus VR headset in your virtual office, finish work and kick back in a blockchain-based game , then manage your crypto portfolio and finances all within the metaverse. You can already see some aspects of the metaverse in existing virtual game worlds. Games like Second Life and Fortnite or work socialization tools like Gather.town bring together multiple elements of our lives in online worlds. While these apps are not the metaverse , they are somewhat similar. The metaverse still doesn’t exist. In addition to supporting gaming or social media, the metaverse will combine economies, digital identity, decentralized governance, and other applications. Even today, creating users and owning valuable items and coins help develop a single, cohesive metaverse. All of these features give blockchain the potential to power this future technology.
Why are video games linked to the metaverse?
Due to the emphasis on 3D virtual reality, video games offer the closest metaverse experience today. However, this point is not only because they are 3D. Video games now offer services and features that carry over to other aspects of our lives. The Roblox video game even hosts virtual events like concerts and gatherings. Gamers no longer just play the game; they also use it for other activities and parts of their lives in “cyberspace.” For example, in the multiplayer game Fortnite, 12.3 million players participated in Travis Scott’s virtual music tour within the game.
How do cryptocurrencies fit into the metaverse?
Games provide the 3D aspect of the metaverse, but they don’t cover everything that is needed in a virtual world that can cover all aspects of life. Crypto can offer the other key parts needed, such as digital proof of ownership, transfer of value, governance , and accessibility. But what exactly do they mean? If we all work, socialize, and even buy virtual items in the metaverse in the future, we’d need a secure way to prove ownership. We must also feel safe transferring these items and money around the metaverse. Finally, we should also want to play a role in the decision-making that takes place in the metaverse if this is going to be such a big part of our lives. Some video games already contain some basic solutions, but many developers use crypto and blockchain instead as a better option. Blockchain provides a decentralized and transparent way of dealing with issues, while game development is more centralized. Blockchain developers also take influence from the world of video games. Gamification is common in decentralized finance (DeFi) and GameFi. It looks like there will be enough similarities in the future for the two worlds to become even more integrated. The key aspects of blockchain suitable for the metaverse are:
- Digital Proof of Ownership:By owning a walletwith access to your private keys , you can instantly prove ownership of activity or an asset on the blockchain. For example, you can display an exact transcript of your blockchain transactions while you’re at work to show accountability. A wallet is one of the most secure and robust methods of establishing a digital identity and proof of ownership.
- Digital collectibility:In the same way that we can establish who owns something, we can also demonstrate that an item is original and unique. For a metaverse looking to incorporate more real life activities, this is important. Through NFTs, we are able to create items that are 100% unique and can never be exactly copied or counterfeited. A blockchain can also represent ownership of physical items.