With the advancement of blockchain technology, a variety of concepts that existed previously only as theories are beginning to take shape. One of these is the virtual world that we refer to as the “metaverse”. How will this new world impact the old internet and online economy?
The concept of the metaverse, an imaginary world that has all the possibilities of a real world was first proposed by Neal Stephenson in his science fiction novel “Snow Crash” back in 1992. In the early 90s the concept was merely an idea, but since the development of blockchain technology is now finding a niche for itself in a few specific projects which have attracted millions of people across the globe.
The rise of NFTs and cryptocurrencies has allowed us to create an economic system that functions fully within the virtual world. You can purchase and sell virtual assets. A few lucky individuals have been able to earn a substantial amount of money through concluding transactions to sell virtual property, digital art pieces as well as other things. It is not surprising that many experts are showing great interest in this area and believe that blockchain technology and metaverses could revolutionize the digital world as well as our Internet as we are accustomed to it.
How Metaverse is related to Blockchain?
Today the concept of “metaverse” refers to a virtual world created by the modern Internet by using 3D technologies. This idea is in direct relation to technologies such as blockchain, mixed and augmented realities, NFT, and many other technological advancements of the past few years. The metaverse is where users are completely immersed in a virtual world in which they can perform all the things they can do in real life like visit fascinating areas, meet new individuals, purchase artwork, or even sell real property. Experts agree that a blockchain-based metaverse will create a fascinating virtual world that will alter the way that everyone interacts.
What is blockchain got in common with the notion of metaverse? Nowadays, a lot of blockchain-based platforms employ cryptocurrency and non-fungible tokens and provide an environment to create, own and monetize digital assets. With no blockchain technology, the concept of the metaverse is not complete because of the numerous issues with the centralized storage of data. Blockchain’s ability to be used globally, as an electronic source that operates in decentralization makes it distinct from the capabilities of the conventional internet, which naturally takes the form of apps and websites. The blockchain-based metaverse gives the ability to access any digital space without the intervention of an institution that is centralized.
Why blockchain is the primary technology behind the metaverse?
Although there is no single definition of the metaverse, and the concept is only being implemented in various projects, such as Metaverse Facebook Horizon and Google Blocks The fundamental operational fundamentals for the system have been designed.
Every metaverse is comprised of two primary components: software and hardware. The hardware component includes every type of controller, which allow users to interact effortlessly with augmented or virtual reality. When it comes to software, we’re talking about an online environment that has content that is accessible at the fingertips of the person using it.
Many people in the industry have come to the conclusion that software should be built on blockchain technology which is an encrypted, decentralized database in that multiple nodes are able to interact with each other in a live, continuously updated network. It is clear that blockchain technology will fulfill the needs of the metaverse as you examine its primary characteristics. Below are the characteristics we have listed:
Security: Metaverse is a repository of information in exabytes, and is a concern for safe storage transmission, synchronization, and transmission. In this way, blockchain technology is relevant to the decentralization of data storage and processing nodes.
Trust: Blockchain is the term used to describe tokens – safe storage devices that are capable of transferring the likes of digital content, personal information, authorization keys, and other data in an encrypted format. In this way, the metaverse blockchain improves the confidence of users in the ecosystem because it guarantees that personal information is not going to be made available to third-party parties.
Decentralization: In order to ensure the complete operation of the metaverse everyone must be able to see the same virtual reality. A decentralized network that is based on blockchain technology allows thousands of nodes that are independent to be synchronized.
Smart contracts: They enable you to efficiently regulate social, legal, economic, and other interactions between ecosystem players within the metaverse. Additionally, smart contacts let you develop and apply the foundational rules of operation for the metaverse.
Interoperability: Blockchain makes it easier to integrate and functionality of multiple interfaces and systems without restrictions. This is especially important in the context of NFT estimation and turnover.
Money relationships: Cryptocurrency, which is an integral part of the blockchain, could function as an efficient analogy to conventional money. Furthermore, with the metaverse crypto, it can be an efficient method to carry out mutual settlement.
It is evident that centralized ecosystems pose many dangers in the functioning and creation that the digital world. They could be hacked or malware, and they can also lead to central decision-making about the operation in the virtual world. Blockchain technology reduces the risk and allows you to establish a stable virtual ecosystem.
Why do we need blockchain to build the metaverse?
Yes. Blockchain technology is an essential component of the metaverse since it allows users to secure the digital properties of their assets within the virtual world. This is emphasized through real-world blockchain initiatives like “Axie Infinity” and “The Sandbox”. Both are based on the metaverse. Users can build and trade digital assets in the form of NFTs as well as be a part of the economy of the country using metaverse cryptocurrency.
Experts agree that it is impossible to create the concept of a fully functioning virtual ecosystem without blockchain technologies. It is because as we’ve explained the need for users to be capable of securely owning the digital properties by moving assets between platforms without the permission of an authority centralized. For instance, the virtual property in The Sandbox “The Sandbox” video game “The Sandbox” can be successfully sold outside of the metaverse (on the appropriate exchanges). Experts suggest that the inability to transfer digital assets out of an ecosystem is a significant detriment to their value.
This is the reason why blockchain technology is a vital technology that lets you identify the exact location of any virtual object, without the need for a central institution. The capacity of each participant in the system to determine the digital asset and trace its ownership in the context of decentralization is essential to creating a fully developed metaverse.
The metaverse can’t exist without a national economy. This is the reason why the integration of metaverse crypto is necessary. Blockchain assures efficiency and transparency of the metaverse market. When it comes to creating virtual reality, it’s essential to utilize solid algorithms to replace real tangible assets. In this regard, the metaverse blockchain could be probably the only technological solution currently available to provide the necessary level of security for transactions in the economic metaverse.
Beyond that, blockchain can allow different ecosystems to be combined, which highlights how blockchain technology is essential in the introduction of the metaverse idea.
Best Projects in Metaverse Based on Blockchain and Web 3.0
Many developers are currently applying the idea of the metaverse in real blockchain-related projects. These are the top five blockchain ecosystems.
The Sandbox
It is an NFT game that is very popular right now. It was originally designed as a mobile application that could be used for regular use however, over time it has developed into a complex Ethereum-based universe that has a SAND-based token. Users create avatars that connect to an electronic wallet to manage tokens that are not fungible, as well as an in-house currency (SAND) and many other assets as well. The game is a fully embedded “play-and-earn” model aimed at increasing the economy in the country.
Decentraland
It’s a 3D virtual world where players can make avatars, purchase and set up plots of land, host diverse events, and even create digital content. The local economy of Decentraland relies on the blockchain that allows digital identification and verification of in-game assets ‘ ownership. The most important digital asset of the game is called a virtual property (LAND). Additionally, the metaverse includes an ERC-20 native cryptocurrency token (MANA) that serves as an internal method of settlement among the players.
Star Atlas
“Star Atlas” is a metaverse game. It is one of the most recent releases created on the foundation of multiplayer gaming games that utilize Metaverse Blockchain and DeFi technology. Players can purchase digital assets like equipment, spaceships, land, and crew. The POLIS money system that is the base of the game’s economy was also introduced. With the variety of innovations utilized to develop Star Atlas experts consider the game Star Atlas has serious potential.
Bottom line
There are many different interpretations regarding the metaverse idea but the majority of experts agree that it’s an area with a huge opportunity. Investors could make profitable money from the concept. Blockchain is a crucial technology that is used to create the core components of a metaverse which includes digital evidence of ownership and money transfer, as well as access, governance, and interoperability. The most important thing is to select an initiative that is popular with users and which will attract new members, which will increase the value and capitalization of the digital assets that are part of specific metaverses.
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