The idea of the Metaverse has been trending since Facebook changed its name to Meta. People’s abilities to socialize, educate one another, work together, and have fun in this digital environment are limitless. In the Metaverse, Blockchain technology is just as important as augmented and virtual reality systems. It paves the way for establishing a fully-fledged virtual economy using cryptocurrencies and NFTs.
Many professionals are optimistic about this field, seeing blockchain and metaverses as having game-changing potential for the Internet and the digital world. Read on if you’re in the business world or simply interested in learning more about “Metaverse in blockchain.”
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What Is The Metaverse?
The decentralized system of virtual worlds and 3D places known as Metaverse was created using blockchain technology. The intuitive Metaverse platform allows anybody to create their own 3D or virtual world with ease. People from various walks of life may meet and form meaningful relationships here. It aggregates several online resources into one convenient location, accessible from any web browser. The Metaverse allows its users to create avatars, interact with one another, buy and sell virtual commodities, and more.
Neal Stephenson first presented this concept in his novel “Snow Crash.” Even if the concept of a metauniverse has only existed in fiction, this might change in the future.
Eric Gu, the co-founder of Antshares, built Metaverse with his team of blockchain experts and engineers (now NEO). The Metaverse Foundation and its team are based out of Shanghai, China.
What Is Blockchain Technology?
A blockchain is a digital ledger that records all bitcoin transactions ever made. When more and more records are uploaded for finished blocks, it grows continuously. Among the data included in each block are records of past transactions, a timestamp, and a cryptographic hash of the prior block. Bitcoin nodes use the blockchain to distinguish between valid transactions and try to spend previously spent Bitcoins.
Prof. Stuart Haber and Prof. W. In 1991, Scott Stornetta developed the first iteration of blockchain technology to date documents decentralized. Unfortunately, the blockchain didn’t debut until 2009 with Bitcoin, the first decentralized peer-to-peer payment network.
In 2008, Bitcoin’s mystery creator, Satoshi Nakamoto, used the word “blockchain” to describe a new distributed ledger technology (DLT).
A distributed ledger technology (DLT) is a database spread over several computers, or “nodes,” providing more security and transparency than a centralized system since all transactions are visible to all the users, and there is no point of failure.
The Importance Of Blockchain In The Metaverse
Blockchain’s various uses and advantages make it a vital technology in the Metaverse:
Security: Blockchain makes it impossible for hackers to steal or misuse user information in order to commit fraud. Users may have complete authority over their information by using private and public keys. Tokens are another element of blockchain technology; they are cryptographic storage devices that may transport encrypted digital information, personal data, and authorization keys. Hence, no other entity may see private information unless given express permission to do so. In conclusion, using zero-knowledge proof on the blockchain facilitates the identification of crucial data in the metaverse while allowing users to maintain their anonymity and ownership of their assets.
Decentralization: All users must share the same view of the virtual world for the metaverse to work successfully, despite its decentralized nature. A blockchain-based decentralized ecosystem allows for synchronization across thousands of autonomous nodes.
Smart Contracts: Users in the Metaverse may use Blockchain Smart Contracts to efficiently manage their virtual worlds’ financial, legal, and social aspects. In addition, under certain circumstances, Smart Contracts may execute directly between parties, making it possible to rapidly and easily create and implement the fundamental laws governing the metaverse.
Money Relations: Cryptocurrency, an integral element of the blockchain, may act as a substitute for fiat currency and be utilized for metaverse-wide settlements.
Examples Of Blockchain Usage In The Metaverse
1. Virtual Money
Virtual currency in transactions are extremely crucial in the future when consumers purchase in virtual shops. With the ever-increasing demand for goods and services and the fast rise of internet commerce, cryptocurrency will soon find its place in a decentralized economy. MANA is a good example of a virtual currency used in the metaverse. In the game Decentraland, this token may be used on virtual real estate. Moreover, virtual currencies may be used in DeFi for lending, borrowing, investing, and trading in the metaverse, not only in Metaverse Gaming.
Non-fungible tokens, or Blockchain-based apps, are another Metaverse use case. These NFTs have a variety of potential uses in Metaverse crypto projects, such as in-game currency, avatar ownership verification, and game rewards. An NFT may be thought of as a master key to certain areas of the metaverse (in other words, the right to control a certain part of the virtual environment). In conclusion, the Metaverse has tremendous promise for the development of NFTs.
3. Real Estate
Real estate is one of the most valuable digital assets in such a setting. It becomes challenging for the Metaverse to evaluate and control these digital characteristics. Blockchain technology, fortunately, might provide a workable solution. In Metaverse, the blockchain may record all transactions involving virtual real estate assets, including their creation, modification, purchase, sale, and disposal.
4. Self-Identification Validation
More than ever, proper data management is essential to prevent the spread of false information, identity theft, and other criminal activities in the Metaverse. Blockchain technology may assist us in doing this task. The distributed ledger stores every piece of data that has been entered, including ages, activities, appearances, and more. Since all transactions are recorded and accessible to all participants, the blockchain prevents tampering with or fabricating data. Consequently, it safeguards the metaverse by providing complete openness and discouraging illicit actions.
5. In-game Asset
Using blockchain technology to show in-game assets as non-fungible coins may contribute to the rising popularity of metaverse games. People can participate in a specific economy and earn real money. Thanks to blockchain technology, players may be certain that their assets in Metaverse games will be preserved even if they lose internet access, delete the game, or die. The Sandbox is an example of such a game since it is a virtual environment that includes its cryptocurrency based on Ethereum.
Facebook is one of the most vocal advocates for unified metaverses. This is interesting for the cryptocurrency metaverse because of Facebook’s Diem stablecoin. Mark Zuckerberg’s stated goal for the metauniverse project is to improve the economic standing of individuals in poor countries by promoting remote work. Facebook has a head start in bringing together social networks, online communities, and cryptocurrency exchanges due to its ownership of these entities. Several major IT companies, including Microsoft, Apple, and Google, also focus on the metaverse.
More integration between NFT markets and 3D virtual worlds is the next phase in the bitcoin metaverse. Although a widely used 3D platform is still being developed, NFT holders may already sell items sourced from various locations on marketplaces such as OpenSea and BakerySwap. Like the metaverse, blockchain developers may build widely used apps that attract more users than the IT goliaths.
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Feature Image Source: Photo by macrovector
Image 1 Source: freepik