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Author Neal Stephenson introduced the word metaverse in his 1993 sci-fi classic, Snow Crash. But 30 years ago, it was a far-fetched fantasy than it is now, and interestingly it is closer to becoming a reality. During Facebook’s most recent earnings call, CEO Mark Zuckerberg highlighted the company’s vision to unite communities, creators, and commerce using virtual reality.
What is Metaverse?
A persistent, online, three-dimensional metaverse is a concept that merges many virtual spaces. The internet we know will look nothing like this in the future. Thanks to the metaverse, users will be able to meet, play games, and interact together in these 3D environments.
Although the metaverse as a whole does not exist, there are aspects of it on several platforms. The closest thing to a metaverse experience right now is through video games. In-game events and virtual economies have allowed developers to push the boundaries of what a game can be.
As a gateway to digital experiences, the metaverse might be worth trillions of dollars. In the gaming industry, there is no end to the metaverse’s potential. Fortnite gamers joined the metaverse at last year’s virtual Travis Scott event, which let 12 million people witness a virtual performance all within a self-contained digital universe.
The Metaverse Craze and NFTs
The premise of constructing a parallel digital universe is not new. When it comes to games and the internet, it has always been there. Virtual reality and augmented reality platforms are helping make virtual experiences more like the real thing thanks to the NFTs-fueled digital asset boom. People want to be able to build and express their own distinct digital identities and experiences as the world is going online.
According to IT experts, the internet will ultimately transform into the metaverse, which will become the next central computing platform in the future. In theory, the notion may be as transformational for society and business as the smartphone.
Today, the internet is typically the primary entrance point for millions of people to access information and services, interact and socialize, sell items, and enjoy themselves. A similar value proposition is expected to be replicated in the metaverse, only that the difference between offline and online will be considerably more difficult to perceive.
Virtual economies are anticipated to become an integral part of the real-world economy. Companies and people alike might be able to participate in economic activities in the metaverse the same way they do now. Basically, this implies being able to produce, sell, and invest in goods and services.
Non-fungible tokens (NFTs) may be used as a basis for value generation. An NFT is simply a claim of ownership over a unique, non-interchangeable digital asset that is preserved on a blockchain. It is possible that the widespread adoption of NFTs as a method for exchanging these types of items could spur the growth of XR (Extended Reality) ecosystems as destinations where individuals can bring their digital and physical selves together.
A perfect comparison is how the App Store prompted businesses to digitize their business so that consumers could enjoy (and pay for) their products and services from anywhere. This paved the path for a slew of use cases that might not have made sense at first, making retail and digital more entwined.
Virtual worlds such as Decentraland and Cryptovoxels are already being used by early metaverse builders like NFT artists, musicians, and crypto-native firms to exhibit their work and establish dedicated communities around it.
Crypto fits right into the Metaverse
It’s not enough to just have a 3D metaverse; you need a virtual environment that encompasses all elements of your existence. Aside from digital proof of ownership, crypto can provide the other important components necessary for the transfer of wealth and governance.
There must be a safe means to prove ownership in the metaverse if we are going to be able to work, interact, and even buy virtual objects. These items and money also need to be transferred in a secure way. Finally, if the metaverse is going to be a significant part of our lives, we’ll want to be involved in the decision-making process.
There are already some simple solutions in certain video games, but many creators choose to employ crypto and blockchain as superior alternatives. While video game creation is more centralized, blockchain enables a decentralized and transparent approach to dealing with the issues.
The video game industry has also had an impact on blockchain developers. Both Decentralized Finance (DeFi) as well as GameFi use gamification. It seems that the two worlds will become even more intertwined in the future because of the parallels they share.
Users should also be able to set the terms of their interactions with the metaverse. In the actual world, we are able to vote for leaders and governments. A fair governance system for the metaverse will need to be in place, and blockchain and cryptocurrencies have already proved to be effective in this regard.
Cryptocurrencies can be a brilliant addition to a metaverse, but they aren’t necessary. Various utility tokens and virtual valuables can be created in a digital economy. Additionally, crypto wallets like MetaMask and Trust Wallet would be beneficial to the metaverse. Additionally, the use of blockchain technology can create systems of governance that are both transparent and reliable.
To put it another way, a fully functional metaverse might change everything about how we interact with the internet. If virtual reality is used, the creative sector may be reimagined, and new opportunities can be opened up for artists, gamers, and other creatives.
Even if the metaverse is a success, there remain concerns regarding privacy, inclusivity, and prohibiting harmful content and environments. To take advantage of the metaverse’s early stages of development, these attributes can be included by design.
Many of the world’s largest technology companies are investing in the construction of the metaverse, which may seem promising. If it succeeds, it has the potential to revolutionize consumer and corporate behaviour.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.