What is Metaverse in blockchain?

Blockchain and non-fungible tokens (NFTS) are the hottest products recently. Nearly 18% of Americans have already invested in NFT. Besides, more than 20% of Brits feels that the NFTs are a safe and sound investment. NFTs are the interchangeable data unit stored using blockchain technology, assigning real-world value to a digital asset. According to the Deloitte survey, 76% of the respondents believe digital currencies are built on blockchain. These are proving to be a sound alternative to the fiat currencies and are most likely to replace them. 

For now, the blockchain, NFTs and crypto are revolving around real-world investment and financial transactions in the physical realm. However, the launch of metaverse by Facebook plans to change it completely. Since Facebook rebranded to Meta, cryptocurrencies like MANA saw a price hike of 400%. The article sheds light on the concept of a metaverse in blockchain, along with its core features. However, it is significant to brief on the key terms, that is, Blockchain and Metaverse. 

Metaverse explained 

The Metaverse is the shared imaginary realm available to the public across the global fibre-optics network. Meta in terminologies mean ‘beyond’, and verse denotes ‘universe’. Most people believe that the metaverse refers to the virtual worlds where the players can roam around and interact with each other. A digital world where the developers can construct buildings, parks, signs, and essentials distinguished from the real world. 

The COVID-19 pandemic ignited the popularity of the metaverse, where more individuals went to work and school online, arousing the desire for online connection. It further hyped with Mark Zuckerberg announcement of constructing a maximalist version of Facebook. Meta is inclusive of social connectivity, office work, and entertainment. He officially rebranded Facebook to the parent company Meta on October 28, 2021. It reflects a significant commitment to creating a virtual environment, known as the metaverse.

Defining Blockchain 

The blockchain refers to the digital ledger, which contains the list of blocks interconnected using cryptography techniques. Each block on the blockchain has a cryptographic hash or numerical algorithm, which defines the previous block. It makes blockchain immutable and is impossible to penetrate for frauds. The security of the blockchain derives from the fact that the peer to peer network manages the system. In addition, it depicts computing power-sharing for the block across a public network, with every network sharing a copy of it. 

There are many blockchain applications in terms of protecting shared information of the healthcare sector, logistics monitoring and anti-money laundering. One of the most buzzed applications for the metaverse in the blockchain is cryptocurrency. The cryptocurrency denotes a digital currency or a digital asset traded online via a digital system and transactions approved using a decentralized blockchain network. Moreover, the most popular cryptocurrencies are Bitcoin, Ethereum, Dogecoin and the blend of Shariah compliance and financial tech, Caizcoin.   

What are the core attributes of a metaverse? 

There are many core attributes of the metaverse, which form the basis of this phenomenon, which are: 

  • It is synchronous, as the metaverse is the living experience simultaneously for everyone, in real-time, just like the physical world. 
  • The metaverse is persistent, which depicts that it never resets, pauses or end, and the system goes in continuity. 
  • Metaverse is available on an individual and concurrent level, which means every person can be a part of it in terms of a specific event or place simultaneously, and with their consent in it. 
  • It is a fully functioning economy, where individuals and businesses can invest, trade and acquire assets valuable in monetary terms. 
  • It will offer a complete experience, as it spans both the physical and digital world and open and closed platforms. 
  • There is a wide range of contributors, which can further create content and infuse experiences. Few content developers are self-employed, while others have commercial operations.

How is Metaverse related to Blockchain Technology?

The metaverse is a three-dimensional virtual reality space where the audience can interact with the digital objects in a characterized surrounding. Metaverse is consistent, real-time, in a self-sustained and infinite space. Further, it is a decentralized space, making it easy to imagine the blend of cryptocurrency in the metaverse version. Crypto distinguishes from fiat currencies, which differs in value and physical form. Hence, the crypto nature makes it a convenient form of payment and investment in the real world. 

The decentralised pattern relates to blockchain technology, as there is no single entity controlling the universe. Therefore, decentralizing the currency would go a long way in meeting the philosophy. Blockchain technology can be a productive anchor in evolving world. Moreover, in a metaverse, the habitat, surroundings, and objects shift as per the developers’ innovations and personalized space. 

Related Content: 10 Ways Blockchain is Revolutionizing in Fintech [2021]

Usage of Blockchain in Metaverse 

The applications of blockchain funnels down to the following cases: 

Immutable In-game Assets: These assets will turn out to the non-fungible tokens or NFTs, where one can earn and sell. Further, the VR game plan allows the users to earn real money through a network of blockchain, and the value exists in real life too. Even after quitting the game, deleting the game or via adverse efforts, the assets stay unharmed. 

Authentication of self-identity: With users navigating the metaverse and evolving personal space, blockchain technology can keep a record, just like a virtual social security number. It stores the complete history, ranging from age to appearance. Moreover, blockchain can keep the entire history of users, which can refrain from any crime in the metaverse. 

Real-Estate Property: Similarly in-game assets, another hot commodity in the metaverse is real estate. Regulation of real estate can be challenging, as the metaverse is beyond the space and concurrency of the audience. However, the blockchain can have an immutable record of creation, amendments, and real estate trading in the metaverse. 

Incentives for the Creators: Incentivization was the first application of the blockchain in the metaverse. In August 2020, Epic Games litigated Apple for charging a 30% fee for any acquisition, which the users can make via Fortnite, which ignited that these kinds of issues can arise the metaverse. Through a blockchain network, one can earn via cryptocurrency in fair exchange rules.

Key Features of Blockchain Metaverse

We cannot ignore the core features of the blockchain metaverse, which is sought topic in digital transformation. There are numerous features, which initiates from the decentralization, the obvious one. No authority controls the crypto metaverse, with all components built on blockchain technology. It diverges them from the mainstream business model of the modern gaming arena. The differentiated structure of blockchain encourages the active participation of participants. Even if the original creators moves out, the game exists in infinity. 

The crypto metaverse uses decentralized autonomous organizations (DAOs) and governance tokens to have control of the gaming future. Therefore it allows them to make changes through voting. Hence, it makes metaverse more than crypto games, expanding in societies with economies and democracy. 

In the crypto metaverse, items are in the form of the crypto tokens, such as non-fungible tokens. The gaming accomplishments and ownership mean a lot to the gamers. The NFTs update the standards of in-game assets in terms of accessibility and transparency. With every NFT unique, metaverse tokens code prove the authenticity of user-generated content and NFT gaming assets. 

Lastly, one of the significant features of the crypto metaverse is the real-world economic value. Economies directly link to the holistic crypto economy. It permits the metaverse token owners, avatar skins and virtual real estate for trading on DEXs and NFT marketplace while assigning real-world value to online investments.

 

You can also read: EA thinks NFT and blockchain games are the future

The Future of Metaverse in Blockchain

The present blockchain is encouraging and inspiring for the current generation. However, it is unclear about the future of metaverse that can mirror real-life and how long the creation will take. The blockchain-based metaverse network works on AR and VR technology to permit users to interact with the virtual environment. Currently, Facebook, Alphabet Inc-owned Google and Microsoft Corporation have invested in cloud computing and virtual reality for fueling industry expansion. Thus, the experts anticipate that these tech giants will generate a hefty amount of monopolizing regions to support payment platforms, subscriptions, and advertising.

Frequently Asked Questions

It combines multiple technology elements that include virtual reality, augmented reality and video, allowing users to live within the digital universe.

Some of the elements of metaverse include blockchain technology besides virtual and augmented reality. Blockchain technology permits credible transactions and authentic ownership of assets, a notable enabler in transactions.

Metaverse of X-verse represents the new world blending virtual and augmented reality, which will replace the internet world. Experts anticipate millions of meta-world, unlike one metaverse.

Different corporations will have their versions of the metaverse. But like the internet, they will be connected. As a consequence, one can move from one platform to another. Many people believe that it is likely that Facebook vision of metaverse will be the interface.

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