By reading this article, you will discover every aspect of virtual worlds, virtual lands, and the metaverse.
The world is now more than ever turning to virtual reality as an alternate, complementary reality to enrich the lives of the millions in the real world. Virtual worlds, or metaverses, have become popular places to meet new people, have fun, and even earn money. The metaverse, in many ways, is like a continuation of our natural world because many activities that once could be done in the real world are now possible in the metaverse. Decentraland offers many perks now, such as ordering Domino’s pizza in the virtual world of Decentraland and even having it delivered to your home.
Defining the metaverse
In a metaverse, users can immerse themselves in parallel universes that allow them to experience a range of unique experiences.
Computers, VR devices, and smartphones can assist in access to virtual worlds. AR, VR, internet, and blockchain technologies is transforming our understanding of the metaverse, where significant progress in all of them allows the development of new, exciting, and even lucrative virtual worlds.
The metaverse has numerous elements, all influenced by the user community, with seamlessly interwoven planned and spontaneous elements. The concept of digital real estate is largely at the core of the Metaverse space, as plots in this world allow individuals to build, create and develop whatever they like on their plots of land. As in the virtual world Second Life, the metaverse allows users to create content and experiences similar to those found in the movie Ready Player One.0
The Blockchain
Metaverse is a crucial component for seamless and instant avatar and asset movement across various virtual worlds. This is specifically made possible thanks to blockchain technology. As it’s known, a blockchain is a distributed and independent digital ledger where data is stored across a network so it can be verified publicly and cannot be altered, as opposed to being centralized in a single location or with one person. A new kind of digital asset has been created by blockchain within the metaverse, one that is both owned and governed by its creator, Arthur Madrid, CEO and Co-Founder of The Sandbox.”
Finally, the idea of decentralised ownership of the metaverse is now luring users in droves. Using blockchain technology, these virtual worlds will enable users to create, experience, and monetize virtual reality applications and content within the constraints of self-contained economies that mimic real-world interactions and offer practical, real-world benefits.
How does crypto fit into the metaverse?
This new generation of virtual worlds will utilize blockchain technology to allow users to create, use, and monetize virtual reality applications and content within self-contained economies that mimic real-life interactions and provide many practical, real-world benefits.
In an age where people work, socialize, and even buy items in the virtual realm, we need a secure method of confirming ownership of virtual items. To be totally safe when placing items and money in another universe, it must feel like transferring them should be completely risk-free. Last but not least, if the metaverse will play such a large part in our everyday lives that we will want to have a say in decisions being made about it.
Some video games already feature the basic security features, but many developers are looking for better ways of securing their games through cryptography and blockchain technology.
Blockchain technology, unlike video-game development that has a more centralized approach, allows for a more federated, streamlined process in order to deal with blockchain-based topics.
Developers of blockchains have drawn inspiration from them. There are many spaces where Gamification has been raised to the status of commonplace, including Decentralized Finance as well as GameFi. This combination will become increasingly integrated when the worlds of Decentralized Finance and GameFi converge. Below are some of the key characteristics of how blockchain and metaverse make them suitable to this combination.
- Digital proof of ownership:
Through a wallet, you can prove ownership of an activity or an asset instantly by having access to the private keys within your wallet. For example, you could display an exact copy of the blockchain transcript for your transactions while at work to demonstrate accountability. Wallets are among the most secure and reliable methods to verify digital identification and prove ownership of assets.
- Collectibles digitally:
In the same way that we can determine who possesses something, we can establish the originality and uniqueness of a product. Incorporating real-life activities into a metaverse is important if one will incorporate a metaverse. By using NFTs, we are able to create unique objects that are unable to be copied, forged, and copied again in the future. Blockchain technology for example can be used to demonstrate ownership of an object. - Transfer of value:
Those who use a metaverse need to know that the value they are receiving can be trusted. There is no denying that cryptocurrency on a blockchain is more secure than in-game currencies in multiplayer games. There will have to be a reliable currency for the users to spend large amounts of time and even earn money in the metaverse. - Governance:
It should also be important for users to be able to control rules that govern their interaction with the metaverse. On the contrary, the real-life example of voting and electing our leaders and governments is quite common, since it’s not uncommon for people to vote. A metaverse needs to have the appropriate governance in order to be able to work. Blockchain technology has already demonstrated success in achieving this goal. - Accessibility:
Anyone can create a wallet on the public blockchain, even if they don’t have a private blockchain. The process is entirely different from opening a bank account, as there is no payment or information required. Therefore, it is one of the easiest ways to manage finances both online and digitally, and it gives you the ability to create digital identities. - Interoperability:
Blockchain technology makes it possible to make platforms compatible with each other more and more easily. There are projects such as Polkadot (DOT) and Avalanche (AVAX) that offer the possibility of creating bespoke blockchain networks that can interoperate. Blockchain technology has already developed solutions for multiple projects connected in a single metaverse.
What’s the future of the metaverse?
The presence of Facebook among the most prominent voices calling for a united, and a little interconnected, metaverse is without a doubt one that is heard with a great deal of power. Considering the Diem stablecoin that has been launched by Facebook as a part of the Diem stablecoin project, this is of particular interest in an increasingly crypto-powered world.
Mark Zuckerberg has discussed his hopes to see a metaverse project that supports remote work and enables developing countries to improve their financial conditions in an interview with the New York Times. In addition to its social media platform, Facebook also owns the messaging, communication, and crypto platforms, which gives it a good opportunity to integrate all of these worlds. It is no secret that many companies are developing their own metaverses as part of their strategy to make their mark in the digital space such as Microsoft, Apple, and Google.
A crypto-powered metaverse based on the integration of 3D virtual universes and NFT (new financial technology) marketplaces is the next logical step. In this regard, the NFT holders have already grown accustomed to places like OpenSea and BakerySwap, where their goods are sold, but they have yet to find a popular 3D platform that will assist them in selling their goods. Metaverses, much like those of large tech firms, may also be developed by developers of blockchain applications, which would provide an organic user base rather than a blockchain-specific application.
Is the metaverse a big deal right now?
It has been reported that Statista estimates as of 10 January 2021, there are 4.66 billion active internet users living worldwide, with the vast majority – 93 percent – using a smartphone to access the Internet. It should be noted that since the internet is the entry point to most of the metaverses, the marketing potential is essentially unlimited to any individual with internet access. The accessibility of this item is going to change a lot of things that have already started to happen, such as these:
- Over 350 million users worldwide have spent billions of dollars on Fortnite in-game purchases, making Epic Games (the company that created the game) one of the top revenue-generating companies. Although Fortnite isn’t blockchain-based, it uses virtual currency known as V-bucks, where users can exchange money for them.
- A new round of funding for Roblox, another immersive game platform led by Andreessen Horowitz, valued the company at $4 billion.
- A blockchain metaverse based on Ethereum, Decentraland, raised approximately $24 million in 2017 through its initial coin offering (ICO). Decentraland offers users the opportunity to buy virtual land and NFT goods to distribute to other users, with the landowner controlling their parcel to build and develop as they choose.
Mr. Sweeney, a representative from Epic Games in December of 2019, says that Fortnite is a game, so ask yourself that question in 12 months; because there are so many subscribers and the surroundings are so immersive, they regard Fortnite as an entry point into the Metaverse concept. The concept was to simply create a great game that played well on any platform from the very beginning.
With time, the concept has evolved into creating a way for people to engage with their virtual world in the context of digital economies. The blothe blockchain does not currently support games like Fortnite and Minecraft future. How they are going to move from a foundation that relies on cryptography to a foundation based on cryptography appears to be entirely feasible. Introducing such games into the crypto space is likely to bring them into contact with a new community of their existing users, thereby catalyzing the mass adoption of crypto-based metaverses.
The metaverse is filled with (NFTs)
The metaverse is only accessible through NFTs, also known as non-fungible tokens.
Cryptographic NFT assets include, among many other things, digital land, artwork, clothes, music, and in-game assets. One of the key features of an NFT is that it cannot be interchanged or fungible with another NFT. Therefore, the data backing the NFTs make their existence unique and a one-of-a-kind phenomenon. By this means, the NFTs are inherently unique, creating a scarcity value.
I think it would be safe to say that it is no secret the NFT represents virtual land within the metaverse, and that prices in the metaverse are increasing to compete with those of the real world.
The record-breaking price in Ether of $1,5 million was paid for a piece of land on blockchain-based Axie Infinity, crushing previous NFT records while setting new ones. This digital real estate portfolio buyer noted that Genesis land plots were the rarest and most strategically located in Axie Infinity, emphasizing that real-world real estate investment parallels digital investment in real estate.
There is a metaverse for big brands
Considering that the NeoFutureTech surge continues to dominate headlines, such as the recent sale of infamous Beeple’s digital art through Christie’s, which realized a whopping $69 million, it’s no wonder big brands and institutions are starting to gain a foothold in the metaverse. Brands exploit their existing customer loyalty in the real world and leverage the metaverse for new engagement opportunities.
Currently, Adidas is working with Karlie Kloss to give away free pairs of (digital) Adidas shoes to the attendees of Decentraland, giving them a sneak peek of their avatars wearing the shoes. With the help of metaverse engagement, brands can reach new users, engage existing customers, and demonstrate how they can bridge the gap between the physical and digital worlds at a significantly lower cost.
Demand for digital land will grow as people engage in digital art, fashion, and gaming. Where will digital art be exhibited? The shoes and socks will be placed on avatars in the virtual world through digital galleries.
What is the venue for the games? A metaverse environment. They are all connected by the metaverse and converge in a virtual land, where all of them are converging.
What is the relationship involving video games and the metaverse?
Due to the emphasis on virtual reality in 3D, video games are the closest thing on the market to experiencing the metaverse.
Despite the fact that video games can be played in three dimensions, it isn’t just that. As video games continue to evolve, their services and features will increasingly positively impact the rest of our lives. Roblox has a virtual world where players can host events such as concerts and meetups. “The players in Fortnite are not just playing the game but are also doing other things in “cyberspace” like using it for other parts of their lives and activities such as Travis Scott’s virtual in-game concert. In Fortnite’s multiplayer mode, Travis Scott’s virtual in-game concert was viewed by 12.3 million players.
Closing thoughts
A single, united metaverse will likely be a long way off, but there are already developments that may lead to realizing such a dream. There seems to be yet another sci-fi application of blockchain technology and cryptocurrencies in this report. We don’t know when we will reach the point of a metaverse; I don’t know how long it will take.
As of now, however, we are already seeing the emergence of projects that resemble metaverses and can continue integrating more of the blockchain technology into our daily lives. We are still in the beginning phases of the metaverse development process.
However, as technological advancements in augmented reality and virtual reality continue to be made, the metaverse will likely play an increasingly significant role in our social, economic, and cultural lives as the years pass by. Metaverse is an attractive opportunity for investors looking to diversify or align themselves with the trends unfolding in the crypto community today. In our opinion, the metaverse provides an appealing opportunity for investors.
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