With the rapid advancement of blockchain technology, many concepts that were previously inconceivable are now starting to take form. One of these concepts is the ‘metaverse’ or a virtual world.
Blockchain and non-fungible tokens (NFTs) have gained popularity these past few years. So, what will be the role of blockchain in the future of the Metaverse?
What Is The Blockchain?
Blockchain is the technology that allows transactions to be recorded in a decentralized and public database called a ledger. Every block on the blockchain contains a cryptographic hash that describes the previous block on the chain. It refers to the timestamp when the block was accessed.
One of the most famous blockchain-based cryptocurrencies is Bitcoin. For instance, every time you purchase some bitcoin, the transaction will be recorded on the blockchain of Bitcoin. This record is then transmitted to thousands of individual computers globally.
What Is Metaverse?
The metaverse is referred to as the 3D virtual reality (VR) space where users can interact digitally with other users as well as in their engaging environment. You might imagine the metaverse as the interconnected virtual spaces in the world wide web but can be accessed virtually. In the metaverse, you could expect the environment, people’s appearances, habitats, and objects to change depending on the developer’s activity or the virtual space’s optimization.
Any metaverse has two primary components: hardware and software. The hardware component refers to the controllers allowing the user to move in the augmented virtual space. On the other hand, the software component pertains to the digital environment or the content presented to the user. Users are capable of visiting different places within virtual reality, playing games, and interacting with friends or strangers with just a few clicks.
But how exactly is this going to work with blockchain technology? To get more info, let’s examine the reasons why you should use blockchain in the metaverse.
- It’s Secure
Many people in the industry came to an agreement that the decentralized nature of blockchain is perfect for the metaverse. The security of the blockchain comes from its peer-to-peer network power. This means its computing power is shared across a public network, so every node on the network has its own copy of the blockchain. Thus, blockchain technology is an integral part of a full-fledged virtual ecosystem.
As the metaverse stores data in one million gigabytes, it raises the question of data storage, transmission, and even synchronization. As users navigate the metaverse, their data naturally evolves.
Luckily, the blockchain can monitor that. It’s like having a virtual social security number, only in the metaverse. Information like age, online activity, changes in appearance, and other details are tracked for transparency. This lowers the possibility of virtually committing a crime, such as hacking and other data breaches.
- It Can Be Trusted
Secure storage devices are necessary for a virtual world to operate. Blockchain involves the use of tokens to store virtual content, personal data, and authorization keys with encryption. Hence, users are assured that their confidential information is stored securely and will not be available to third-party companies. This will increase the users’ trust in the virtual ecosystem, which in turn attracts more users to the metaverse itself. To
- It Has Smart Contracts
Ethereum is a blockchain that operates through smart contracts. Smart contracts are blockchain-based software that can operate automatically once certain conditions are met. For instance, you could use a smart contract to demonstrate your ownership of a certain digital object. These digital objects, such as currencies, artwork, and securities, that can be owned are crypto assets.
One concrete example is in-game assets. These in-game assets will become NFTs that you sell. Even if the VR game was deleted or some unfortunate event happened in the metaverse, your assets will remain undamaged.
Basically, smart contracts allow the regulation of legal, economic, social, and other relations between the virtual ecosystem participants within the metaverse. This also allows you to implement the fundamental rules for operations in the metaverse.
- It’s Interoperable
The metaverse isn’t created by a single company or group. Different groups will build their own virtual worlds and they will mesh into one, forming the metaverse.
Blockchain made this possible because it facilitates shared interoperability, working with different interfaces and systems without limits. This is especially important in NFT valuation and turnover.
For example, as users move between virtual worlds, they’re permitted to bring their digital goods with them. The blockchain will validate proof of their ownership of particular digital assets in both virtual worlds.
- It Provides Virtual Currencies
The metaverse can’t exist without a decent economy running its course. That’s why the integration of the metaverse crypto is inevitable. It’s obvious that once the metaverse is established, cryptocurrency will be the plausible alternative for fiat or traditional money. However, the value of a cryptocurrency can vary as it’s not tied to a single entity or institution to assign value to it.
However, the blockchain will ensure the economic effectiveness and transparency of the metaverse marketplace. Creating virtual reality requires reliable algorithms to replace tangible assets with digital ones. Thus, the only viable solution is to establish a trustworthy economic transaction within the metaverse.
This won’t happen if crypto is absent. Since online shopping is steadily increasing, the day when consumers purchase virtual goods and services is not far off. Cryptocurrency will soon be applied in that decentralized virtual ecosystem.
Final Thoughts
The metaverse is likely to encompass all aspects of everyone’s lives in the future, from work, gaming, religion, live events, dating, and education to retail and tourism. All of the elements, such as money transfer, digital proof of ownership, governance, interoperability, and accessibility, are expected to come together and coexist once the metaverse has taken its final form.
As for further advancement in the metaverse, that would depend on the development of the roles of blockchain, cryptocurrencies, and NFTs.
