Metaverse is the Future of the internet. It is a 3D virtual space where humans would be able to socialize, play games, and work together. While the concept is out there for quite some time, there is no actual full form of it in existence as of yet. However, you can experience bits of a metaverse in the form of video games.
The world of metaverse creates a digital economy of its own with the help of cryptocurrency. Crypto tokens can work as money for collectibles, characters, lands, houses, and pets. They are already used in many metaverse spaces.
Metaverse also uses blockchain technology for transparent and reliable governance of the network. Decentraland is one example of blockchain-powered virtual reality.
What does Metaverse mean?
The sci-fi writer Neal Stephenson coined the term ‘Metaverse’ in his 1992 novel Snow Crash. He used it to describe a virtual 3D space. ‘Meta’ is a Greek word that means ‘beyond’. ‘Verse’ comes from the English word ‘Universe’. Hence, Metaverse means ‘beyond universe’.
In 2022, Metaverse means the future version of the internet. It is the extension of what we currently perceive of VR (Virtual Reality) and AR (Augmented Reality). People will have a digital avatar for interacting with each other in the virtual world. Moreover, metaverse does not stop existing when you are no longer in it.
If you are still having trouble imagining just go and check out Steven Spielberg’s movie, “Ready Player 1”.
The movie shows people participating and competing with each other in a virtual world. They wear a headset to enter the game. However, the competition has real-world implications as well.
Economic Implications
The money that we earn in the Metaverse can be used in the real world. That aspect of virtuality is fascinating as it allows you to combine your physical, virtual, and financial worlds. With a simple click, you can transfer money, possessions, or ownership to another person. Moreover, you can earn while playing games. Axie Infinity is an example of such a play-to-earn game.
Metaverse is also capable of creating jobs. There are many development-related jobs in the field. Besides, in the future user may be able to enter virtual offices and interact with their colleagues in avatars. This can give a whole new meaning to working from home and cut costs for businesses.
The Role of Cryptocurrency
In a 3D world, users will need a secure method of transferring value to one another. It will also require a method by which you can prove the ownership. Last but not the least, users have a role in the governance of the metaverse. Cryptocurrency provides solutions for all these problems.
Blockchain technology is accessible, open, and transparent. It allows the creation of a system of trust. In addition, blockchain-based virtual applications can be governed by the participants. Crypto tokens and NFTs provide a means of value transfer on the blockchain.
Here are three ways in which crypto can play a role in the metaverse.
Ownership: The money, avatars, digital cats, digital lands, and every other virtual item need proof of ownership. You can provide the proof via a private key to a wallet. Every item in the wallet belongs to the person who owns the key. Thus the ownership conundrum is resolved via crypto.
Value Transfer: You can transfer the value of an item using cryptocurrency. Crypto transactions are recorded on an immutable blockchain. The data on the blockchain is open for verification and impossible to change.
Decentralized Governance: The nature of the internet makes it open for everyone. There is no central authority owning the internet. Likewise, the metaverse will be governed by the participants with voting rights. They can bring upgrades and define features in the technology. This decentralized governance will be made possible through cryptocurrency.
Examples of Metaverse
Multiple platforms are showcasing the features of the metaverse. Here are two of the most popular ones.
Decentraland
Decentraland platform uses a combination of NFTs, digital currencies, and virtual lands. Users can have their own patch of virtual land and develop as they want it to b developed. Decentraland is one of the growing metaverse projects. It has its own token called MANA.
MANA holders have voting rights in the development of Decentraland. Moreover, the token has a high trading volume which makes it good for investment and trading on exchanges.
Axie Infinity:
Axie Infinity is another example of a metaverse project. It is a blockchain-based game where players create, breed, and trade creatures called Axies. The platform uses a combination of NFTs, 3D gaming, and blockchain technology.
Axie infinity ecosystem is governed by its player holding the AXS token. It is constantly developing with new features. Soon users will be able to stake AXS tokens and earn rewards.
Future of Metaverse:
Companies like Facebook, YouTube, and Microsoft are already enthusiastic about developing a metaverse ecosystem. Mark Zuckerberg has explicitly discussed the plans of incorporating metaverse into his company’s future development. He has rebranded the company Facebook as Meta.
In the coming years, we will see a lot more development in the 3D gaming and Non-Fungible Tokens (NFTs) area. Metaverse will usher in the next era of the internet along with web 3.0. Let’s behold as the mystery unravels.
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