Blockchain Metaverse: Does the Metaverse Need Blockchain Technology? 

by Rabi Yahaya

With technologies such as drones, and self-driving cars, coupled with the diversity of the Internet, the world has more technological advancements like the blockchain metaverse. As a result, we are being propelled to a future of unlimited possibilities.

These advancements have propelled the world into being a global village, a unified world with just a click.

This article will provide insight into the use of the blockchain metaverse. What it means, the tokens associated with it, and its relationship with the blockchain technology and Web 3.0.

What is the Meaning of Metaverse?

blockchain metaverse

The metaverse is a virtual reality world where things are done in real life and can be replicated virtually using 3D technology. It is a world where we can live, play and work—an infinite universe.

The metaverse is seen as the next-generation Internet edition, likely formulated by virtual (VR) or augmented reality (AR) technology.

The idea of the metaverse was first revealed in the fictional novel Snow Crash in 1992 by Neal Stephenson.

The story talks about a virtual world with limitless futuristic opportunities. The novel was seen as just a fantasy, but with the introduction of blockchain technology, we are witnessing the evolution of this reality which has made so many people millionaires.

With the emergence of Bitcoin and other cryptocurrencies, such as Ethereum, and the most recent of them all, NFT, we can see how possible it is to build a functional virtual economy where people can buy and sell at ease without the need for a third party.

Crypto enthusiasts and experts in blockchain technology have been opportune to make lots of money from selling digital art objects and other virtual assets.

The discussion on the metaverse has propelled many people into thinking about the prospect of the metaverse. Many believe the metaverse and blockchain and web3.0 can change the digital space and the Internet as we know it.

Read also: A guide to the metaverse simplified for Nigerians

How Does The Metaverse Work?

blockchain metaverse

Metaverse is a virtual reality world created within the new Internet using 3D technologies. You can interact with people, objects, buildings, etc. The metaverse is like a computer game where one can play with opponents; the only difference is that you can earn from it.

You can own things in the metaverse just like in the real world. So, for instance, you could own a virtual land or virtual objects like arts, cars, etc. And these are called Non-Fungible Tokens (NFTs).

Enthusiasts have asserted that creating a blockchain-based metaverse can open up an incredible virtual world that will change the way people interact with one another.

While the metaverse is relatively a new virtual world in the tech industry, big companies like Coca-Cola, Google, Facebook, etc., are already holding a space.

These prominent tech companies see this virtual world as the next big thing waiting to happen in the tech ecosystem. They think it would make the time people spend online more useful and fun, and it is also a new way to make lots of money on the Internet.

Blockchain Metaverse: What You Should Know

blockchain metaverse

Blockchain is the technology behind cryptocurrencies. It is a digital footprint from which every crypto transaction done on the Internet can be traced back.

Blockchain is the technology designed solely to make transactions more secure by recording data in multiple locations, making it harder for hackers to tamper with. Without blockchain, the metaverse theory is vague due to the various deficiencies of merged data storage.

The fact that blockchain can operate globally, being a digital source operating on the principle of decentralization, fundamentally differentiates the metaverse from the powers of the established Internet, which takes the form of websites and applications.

Blockchain metaverse aims to provide access to any digital space without the interference of a centralized group.

4 Ways Blockchain Is Used In The Metaverse 

The blockchain metaverse is used to generate and regulate the metaverse. Below are the examples of the importance of the use of blockchain in the metaverse:

  1. In-Game Assets

blockchain metaverse

Blockchain experts have asserted that games will serve as the most prominent sector where the blockchain metaverse will be explicitly explored. They believe that virtual purchases utilized by the players will be presented in the form of non-fungible metaverse tokens.

Soon, this virtual reality (VR) game will facilitate earnings for these players to earn money that can be used as a means of payment within a certain ecosystem.

Blockchain technology will make it easier for the players to leave a digital footprint to come back even after a long period. However, the assets of every player will still be intact. This is the sole purpose of blockchain technology; to keep and record digital transactions.

A substantial proportion of equity is in this game asset, with developers of refined technological companies exploring it. The Sandbox, by PIXOWL INC, is a virtual world game with an integrated system.

It generates money by issuing and selling tokens and digital assets using Ethereum. Therefore, it is pertinent to know that some of the world’s prominent brands exist in the Sandbox metaverse ecosystem.

The metaverse NFT game is the Axie Infinity, developed by Sky Mavis. It has over a million active players. An outstanding facet of this game is motivating new players to participate.

  1. Virtual Currencies

blockchain metaverse

Payments are one of the most visible aims of blockchain technology within the metaverse. One of the metaverse examples of virtual currencies in the metaverse is MANA which is used to buy virtual property in the game.

Sales are already being closed within this metaverse by those taking the opportunity of the new entity, and this is just the start. Eventually, users will be able to buy virtual analogs of everything that can be acquired in the real world.

Furthermore, this technology will not be limited only to games as it has the dynamically developing niche of Defi may well become a testing ground for virtual lending, borrowing, investing and trading within the metaverse. Hence, the scope of cryptocurrency appears to be extensive.

  1. NFT

blockchain metaverse

Many experts say Non-Fungible Tokens will play a key role in the metaverse. It will be used as proof of ownership of digital assets, and these tokens will be involved in digital art trading, which is already used.

In addition, NFTs have an enormous potential to be integrated into metaverse crypto projects related to purchasing any game assets; if this area continues to develop, non-fungible tokens will be used as proof of real estate ownership.

NFT is an entry key to distinct areas of the metaverse. The non-fungible tokens will be used to assign value to specific digital assets.

This is vital as almost any digital asset can be cloned an unlimited number of times, and only a certificate of holding built into a digital object can confirm the right of the legitimate holder.

Read also: A complete guide to making money with NFT

  1. Real Estate

blockchain metaverse

This is one of the major digital investments in the metaverse. The principal questions here are how to assess a virtual real estate object and regulate this market if the metaverse represents infinite digital space.

This is where the metaverse blockchain can be utilized as a form of record-keeping or register that documents all activities completed within the virtual space.

Finally, it is worthy of note that the metaverse and the blockchain have been expanding as autonomous concepts. The full potential of both will be fully attained only when they are merged.

The concepts have their complementary functions, which will eventually have a synergistic effect: people will notice something fundamentally new, which will help change the perception of virtual reality and crypto metaverse.

Is Blockchain Needed In Building Metaverse? 

Blockchain is an integral part of the metaverse because it enables users to protect their digital assets in virtual reality. Blockchain metaverse projects such as “Axie Infinity” and “The Sandbox” incorporate the use of metaverse. As a result, users can create and sell digital assets such as NFTs, benefiting the vast economy.

Experts agree that it is impossible to realize the idea of ​​a fully-fledged virtual ecosystem without blockchain technology.

As interpreted in this article, people need to be able to securely hold and sell their digital possession by moving assets between the platforms without permission from an authority, which has been the focus of cryptocurrency.

This is why the blockchain is a significant technology allowing you to identify with exactness any virtual object without involving a third-party institution.

The possibility of every participant in the ecosystem to identify a digital asset and track its ownership within the logic of decentralization is the key to building a fully evolved metaverse.

The metaverse cannot exist without a pre-existing economy, and this is why the blockchain is there to help. This explains why the integration of the blockchain metaverse crypto is inevitable.

Blockchain secures the translucency and monetary effectiveness of this metaverse market. It is vital to use reliable algorithms to restore real assets with digital ones.

The blockchain metaverse is the only technical solution that could provide the proper level of trust in this type of economic transaction for now. Maybe when something better than blockchain technology is developed, we can move to that. For now, blockchain is the best approach to buying and selling assets on the metaverse.

Furthermore, the blockchain metaverse allows different ecosystems to be combined, further underlining how this technology is crucial when introducing the metaverse concept.

Read also: An introduction to blockchain and cryptocurrency for Nigerians

Is Metaverse and Web 3.0 The Same?

blockchain metaverse

Web 3.0 is another important concept related to blockchain and the metaverse. The words metaverse and Web 3.0 have started to be used interchangeably in the tech space. Although these two focus on enhancing a better internet for the future, they are two different visions.

The metaverse deals with how users will experience the future Internet, while Web 3.0 is centered on who will own and control the Internet. Its major purpose is to solve the weaknesses of Web 2.0, like data violations and data privacy problems. Web 3.0 will use blockchain to facilitate decentralization and let users own and control their data on the Internet.

Web 3.0 is still under development. Yet, we already see some of its elements like non-fungible tokens, which utilize the blockchain to help people monetize their skills in new ways, and play-to-earn games that help people earn revenue while playing.

While some speculate that Web 3.0 is a major building block for the metaverse, it is only one element of a greater sum.

Metaverse token on Binance

Metaverse tokens are virtual funds used to buy and sell within the metaverse space. The use of blockchain technology makes sure these transactions are safe and secured to use. Here are the most popular metaverse tokens on the Binance app:

  • Decentraland (MANA) is currently being sold at $2.79 on Binance.
  • The Sandbox (SAND) is being sold at $3.33.
  • Axie Infinity (AXS) has a market cap of $3,402.90 million
  • Illuvium (ILV) has a market cap of $384.61 million.
  • Vulcan Forged PYR (PYR) has a market cap of $281.99 million.

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There are many differing visions for the metaverse concept, yet almost all experts agree that it is a niche with a great promise. Blockchain is a necessary technology for the main elements of the metaverse, which include digital proof of ownership, money transfer, governance, and accessibility.

The principal challenge is choosing a project that users will like and attracting new participants, thereby increasing its capitalization and the value of digital assets affiliated with a particular metaverse.

There are many ways to earn money in the metaverse, from buying and selling collections of metaverse NFTs to creating a virtual property.

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About Author

Avatar of Rabi Yahaya
Rabi Yahaya
Rabi Yahaya is a content writer whose works have been published by prominent websites in Nigeria.
Remotely works with local and international clients to create engaging content for brands. Creating compelling articles and stories that talk about issues concerning women. A budding SEO writer.

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