Role of Crypto in the Metaverse

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Role of Crypto in the Metaverse

Thanks to new technologies, the changes around you are moving at a faster pace. You can see how the metaverse may bring several promising improvements in a few proposed projects when it comes to blockchain.

Although most individuals assume that the metaverse has been existing for more than one decade before it successfully materialized, it can happen faster than any individual can imagine.

With that said, it is also vital to notice the increased attention around different projects in the metaverse, particularly the crypto projects as well as meta verse crypto.

What the Metaverse Has to Do with Crypto

What the Metaverse Has to Do with Crypto

Among the ways the crypto and metaverse intersect is through NFTs (non-fungible tokens). NFTs are a type of digital asset ownership, and they allow every user to sell and buy virtual products, experiences, and services within the metaverse.

For instance, if you are looking to purchase a plot of land in the metaverse, you will use crypto to buy NFTs for that piece of land. Then those NFTs act as digital proof of ownership.

Metaverse Explained

For years, the potential of virtual worlds existed in the pages of a few science fiction novels. These days, the metaverse is among the buzziest words in the world of technology and is being embraced enthusiastically by game and software developers across different sectors, ranging from gaming to social media and crypto.

A metaverse is an immersive and shared virtual world where players represented by avatars may interact with one another, create in-world landscapes, and construct experiences.

Typically, metaverses have their intrinsic currencies and economies, with which users may trade, sell, and buy digital items, real estate, and avatar accessories. You may experience metaverse through the following:

  • Smartphone
  • VR (virtual reality) headset
  • Computer

How It Works

In general, the metaverse is divided into two platforms. The first platform involves cryptocurrencies and NFTs to develop blockchain-based metaverse startups. People or a company may buy virtual lands and create their settings on The Sandbox and Decentraland platforms.

The second one basically uses the metaverse to describe a virtual world where individuals can meet for enjoyment or business.

Everyone who trades or buys virtual assets on those platforms should use cryptocurrencies.

Blockchain Explained

Blockchain Explained

Blockchain refers to a digital ledger containing a list of blocks or records interconnected using cryptography techniques.

All the records on the blockchain have a mathematical algorithm or cryptographic hash describing previous blocks on the chain and timestamps of when records were modified/accessed, among other data.

Because of this, blocks are virtually impenetrable and immutable to fraud, as there is an end-to-end record for transparency.

Although blockchain has a lot of use cases, including logistic monitoring and anti-money laundering, it is one of the most relevant applications. 

Similar to regular currencies, you may use crypto to make some purchases. But crypto’s value may differ wildly as no single agency regulates or controls its value because of its decentralized nature.

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Metaverse Cryptocurrencies worth Buying

The metaverse and cryptocurrencies are the hottest areas. Many investors have flocked, hoping to make a lot of cash.

You may invest in the metaverse and cryptocurrencies at the same time. But not all digital tokens within the metaverse are worth consideration. Some of the metaverse cryptocurrencies you can invest in are:

  • Decentraland: It ranks as the greatest metaverse cryptocurrency today. Decentraland has a market cap of around $5.7 billion. Apart from Decentraland being the greatest metaverse cryptocurrency, it is a fully decentralized virtual world. Its DAO (Decentralized Autonomous Organization) owns the smart contracts, which drive the Decentraland metaverse to allow every user to sell and buy virtual land.
  • Sandbox: This is the same as Decentraland, with Sandbox active as a virtual currency. According to experts, Sandbox is a community platform where every user may communicate with one another, sell, and buy real estate to earn income. The platform is as well endorsed by big names in the musical industry, including Deadmau5 and Snoop Dogg. It slightly runs behind Decentraland with a market cap of about $4.4 billion.
  • Axie Infinity: This is one of the metaverse cryptocurrencies, with approximately $3.8 billion total market cap. There is a close relationship between Axie and the two aforementioned metaverse cryptocurrencies. Similar to The Sandbox and Decentraland, Axie has its native token, usually used as currency in the virtual world. But Axie is focused more on gaming than those two. Players purchase creatures referred to as Axies, which they may engage in a battle, breed, and later sell.

Role of Cryptocurrency in the Metaverse

Role of Cryptocurrency in the Metaverse

Most industries have come to the agreement that software needs to be based on the blockchain that basically represents secured decentralized databases where an independent node may interact dynamically in an updated and single network.

It has become so obvious that blockchain may meet the metaverse requirements by understanding the roles of crypto in the metaverse. Some of these roles include:

  1. Interoperability: Blockchain technology facilitates the functioning and interoperability of different systems without restriction. That is particularly important when it comes to turnover and valuation of NFT.
  2. Identity: The metaverse is a touch of web3 and interplay of extended realities, and a valid identification might be required. It is unlikely that people may still subscribe to tiresome and long know-you-customer processes. Basically, your crypto wallet is not just important in storing your tokens. It is also helpful to keep digital items, such as weapons, accessories, clothing, and avatars.
  3. Smart contracts: In the metaverse, a smart contract makes it more feasible to regulate economic, social, and legal relations efficaciously between different ecosystem participants. It as well allows users to develop and implement basic rules for the operations and functioning of the metaverse.

The Takeaway!

The possibilities of crypto used in the metaverse are almost limitless, allowing individuals to achieve things that might not be simple in the physical world.

The future can have a lot of job opportunities within the metaverse, creating revenue systems. Plus, investments are more in the metaverse, with many individuals investing in virtual real estate and NFTs.

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