Role of Blockchain and Crypto Projects in Metaverse
It's no secret that blockchain technology and cryptocurrencies are changing the world as we know it. Many people are still trying to understand the role of these technologies, and the role they will play in the formation of the digital world - Metaverse.
The last few months have been flooded with news about the Metaverse, and Meta's (Facebook) statement of its own digital universe has made it even more popular. Major companies like Apple, Microsoft, and Sony are making inroads into the new market.
Mark Zuckerberg describes the idea of the Metaverse as an “embodied internet” where virtual reality allows people to live a second life online. The Metaverse would be a virtual ecosystem, where you can access different services and apps in a real-life resembling way.
The arms of the Metaverse have extended to both existing tech giants and blockchain projects. Almost everything we do today in the real world will exist in the Metaverse.
In this article, we will discuss the role of Metaverse in the cryptocurrency and blockchain ecosystem, and explore its potential use cases. We will also look at some other more traditional companies in the space that are worth watching.
What Is Metaverse, and How Does It Work?
The Metaverse is a digital space that is changing the way people interact using technology, such as AR/VR. The immersive digital space comprises Virtual Reality and holographic simulations that enable users to access the virtual world, where they can interact and engage in various real-life activities. It’s a 3D space where you have a digital representation of yourself called - an avatar.
The Metaverse is operated by augmented reality, with every user controlling an avatar. Imagine being able to hold a virtual reality meeting in your virtual office space using a VR headset, and then relax playing a blockchain-based game after work.
The concept of the Metaverse is conveyed by social media and technology companies. Devices like digital glasses, VR headsets, smartphones, and other gadgets will enable users access to 3D virtual or augmented reality space where they can work, interact with friends, execute businesses and more in this technology-mediated environment.
Metaverse is not limited to a single space or just one type of experience, it is rather a series of immersive digital spaces and experiences built by different projects and companies, that will be available to users in the future and enable them to engage in various activities in a digital virtual space.
Among the potential features of this technology are collaboration platforms that encourage better partnership and integration, as well as productivity platforms for remote teams.
The Role of Blockchain in the Metaverse
With blockchain technology, the Metaverse could become truly decentralized. This means that instead of one central authority controlling everything, the users have a say in how things are run.
This will be a boon for the Metaverse, as it will allow for greater freedom and creativity. People can create their own virtual reality without having to worry about censorship or control from others.
Blockchain or cryptocurrency can help actualize the true concept of the Metaverse by providing it with its underlying architecture. The increase in the list of Metaverse crypto projects will directly affect how blockchain shapes the future of Metaverse. Some of the blockchain’s key features include:
Governance
Blockchain’s inherent transparency gives the basis for fair and decentralized governance in the Metaverse. As in the real world, the pre-defined enforcable rules must be also governing the digital world, and the Metaverse will be no exception.
Proof of Ownership
Blockchain can provide digital proof of ownership of assets in the Metaverse. You may own a cryptocurrency wallet, and your private keys can allow you to prove ownership of your assets. As a result, Metaverse crypto projects can have strong and highly secure methods for establishing proof of ownership and digital identitym that won’t be owned by third-parties and re-sold to advertisers, but instead fully controlled by respective individuals.
Interoperability
The critical aspect of the Metaverse is interoperability. The most viable Metaverse projects must be interoperable, and that’s where blockchain can provide real value with the rise of trustless and permissionless inter-operability protocols.
Value Transfer
The ability to transfer value is another important factor. Metaverse must have a way to transfer value while maintaining trust. Because of this, cryptocurrencies and blockchain can certainly provide a reliable currency for users to transact with while maintaining trust.
Blockchain and Crypto-based Projects in the Metaverse
While some people see blockchain and crypto projects as superfluous, others view them as essential components of the Metaverse ecosystem.
Digital currencies such as MANA (Decentraland), SAND (Sandbox), AXS (Axie Infinity), GALA (Gala Games), ENJ (Enjin Coin), are popularly described as Metaverse tokens. The purpose of these currencies ranges from shopping, buying or exchanging goods to investing in real estate, developing it, or acquiring luxurious items. NFTs (Non-Fungible tokens) can also be exchanged among users.
MANA has the highest Market Cap of $5.9 Billion, currently priced at $3.23, over 23% higher than the previous week. MANA is known as the native currency of the Virtual world, Decentraland.
In Decentraland, people who are looking to invest in any of the projects have to use MANA as a means of payment. The transaction fees are very low because Decentraland recently added a native support from the Polygon.
Next on the list is SAND (SANDBOX); SAND has the next highest market cap of $4.6 Billion and is trading at $4.50, over 21% higher than the previous week. SAND is earned by completing activities on the SANDBOX, a virtual game. These earned tokens can purchase land or other virtual objects.
Interestingly, many new projects are coming up and also connecting to improve different aspects of users' digital lives. It is also important to know that cryptocurrency is the currency of the Metaverse. Goods and services in the Metaverse are paid for with cryptocurrency.
Non-crypto Projects Involved in the Metaverse
A few non-crypto related businesses are already changing the landscape, with entertainment and gaming companies in the front line.
Facebook CEO, Mark Zuckerberg, has become the leading light of this virtual Major game consoles and PC games like Fortnite, from Epic Games, have formalized playing and socializing with other users in virtual settings. Other newer gaming programs, like Roblox, allow users to develop and play games across the worlds created, and they get incentivized.
Other software companies, such as MetaVRse and Unity, are creating web-based engines for gaming studios to improve content creation in Virtual Reality (VR) and Artificial Reality (AR)
However, there is still a lot of work to be done in building the Metaverse, some of which involves solving the many difficulties that this virtual universe presents, also building a more comfortable VR device and other hurdles that will be met for its mass adoption to become a reality.
Many companies are vying to be among the first to reach the purpose of building the Metaverse soon, and these are a few examples.
Examples of Non-crypto Projects:
Mark Zuckerberg is investing so much in the Metaverse. The company renamed the iconic social network Facebook to "Meta." They announce the Metaverse is the next evolution of social networks and promised a 3D space to learn, interact and play in many new ways.
Microsoft Mesh
Microsoft is looking to build a work-centred Metaverse that connects its massive contributions in a digital environment called "Mesh." Mesh offers users access to Windows, Microsoft Teams, and other services in Virtual Reality.
Apple
Currently, Apple is also working on advanced VR gear that could transform the Metaverse experience.
How to invest in Metaverse
The Metaverse is still in its infancy, but its popularity has been growing steadily, and the expected technology advancements should bring it close to masses. As demand for this space increases, the value of so-called “Metaverse assets” could skyrocket.
Now let’s break down the “Metaverse assets” into several categories:
- Metaverse cryptocurrency
- In-Game NFTs
- Lands
- Stocks
- Metaverse index
With the future prospect of the Metaverse, investing in any of these assets might be a big win soon, as the demand for them might increase if the space becomes overpopulated.
A few other options for making money in the Metaverse include:
- Play-to-Earn Games
- Online Shopping
- Online Partying and Concert Participation
- Open Art Gallery
- Land Leasing on Metaverse
- Metaverse Architecture and Designer
- Open Art Gallery
- Business promotion and so much more.
Metaverse is considered to be among the greatest movements in the world of tech today, and enormous growth in the value of Metaverse might be just the beginning.
The Future of Metaverse and Its Impact on Digital Societies
The blockchain technology should be the backbone of the Metaverse, as it will play a significant role in its development. Cryptocurrency is expected to be the currency of the Metaverse, and users will be able to use it to purchase goods and services. This new virtual world is coming soon, and it promises to be an exciting place to explore.
It’s important to keep an eye on this space and it might be clever to invest in some of the promising projects that are coming up. With blockchain technology at the core, the Metaverse is only going to continue to grow and improve.
Metaverse is still in its early stages of development, and the number of Metaverse projects is also increasing significantly. However, early on is always good, and sometimes we just need to wait and watch opportunities present themselves.
The potential for this virtual world is great, and we are excited to see how it develops.
*This communication is intended as strictly informational, and nothing herein constitutes an offer or a recommendation to buy, sell, or retain any specific product, security or investment, or to utilise or refrain from utilising any particular service. The use of the products and services referred to herein may be subject to certain limitations in specific jurisdictions. This communication does not constitute and shall under no circumstances be deemed to constitute investment advice. This communication is not intended to constitute a public offering of securities within the meaning of any applicable legislation.
