The metaverse and crypto are connected – a virtual world where you can spend virtual money. They are the basis of what is known as web3 – the third generation of the internet. Web1 was the world-wide-web, and web2 was social media. The third version aims to be more engaging and experiential because it integrates concepts like augmented and virtual realities that enable users to dive into a 3D environment that offers complete experiences.
Even if they’re connected, they are also stand-alone concepts that can exist without each other. For example, Bitcoin has utility in the virtual and real worlds and will most likely maintain its status as the king of crypto even without facilitating metaverse projects. Also, several visions of the metaverse only tangentially involve blockchain technology and digital currencies.
But if we analyse the relationship between the two, it’s clear they share a potential synergy because together, they could revolutionise the virtual experience. People love spending money online and offline, and shopping has quickly become a definitive characteristic for web1 and web2, so we can only assume that’ll also define web3. It’s also clear that no matter how the metaverse evolves, it’ll definitely impact the crypto sector, and why not even the society.
How Can We Define The Metaverse?
As mentioned before, we can define the metaverse as the next generation of the internet that offers an immersive experience in virtual reality. People will no longer type on a keyboard and watch screens but use smart glasses and VR headsets to explore the virtual world. The technology even offers the possibility to engage with other users and interact with digital objects. The metaverse is an innovative concept because no entity or individual can even own it, even if organisations and companies can use and engage with the virtual world similarly to users. The entire system is organised with the help of blockchain technology, which safeguards it against online threats and fraud. Users can complete transactions using cryptocurrencies like ethereum and Bitcoin. It’s easy to add digital currency to their wallets; they check Bitcoin price via an exchange platform like Binance and then use the tokens to buy assets or services.
How Did The Metaverse Come To Life?
The concept of the metaverse isn’t new. It first came to life in the imaginations of science fiction writers who created fictional worlds that depicted alternative realities. The metaverse is supposed to propel people beyond the known universe and offer access to new realities and experiences.
The metaverse enables people to enter an augmented reality where they can explore new realms, meet new users, and develop digital content. This digital land provides an immersive experience where users can collaborate and interact with each other. At the moment, the gaming ecosystems functioning in the metaverse are the most popular. Still, it also offers several other options and tools (events, festivals, investment tools, social media platforms, workplace tools, and e-shops). Gaming can be described as the tip of the virtual iceberg because when web3 matures, it’ll transcend industries and offer users access to do virtually everything they want.
The interest in the metaverse spiked when Facebook rebranded itself as Meta, promoting the idea of a virtual world that offers access to multiple services. The event triggered hype in the crypto scene and caused an increase in interest in meta-related digital currencies and platforms.
Metaverse crypto and non-fungible tokens hold the key to unlocking the metaverse because they offer users property rights to digital assets. People use non-fungible tokens to sell and buy digital artwork and property, attend online events, and travel around the metaverse. Metaverse cryptocurrency funds the ecosystem and makes it easier for people to create virtual assets.
What’s The Connection Between The Metaverse & Cryptocurrencies?
The metaverse aims to create a bridge between the physical and virtual worlds, allowing users to purchase, create, or earn items in both worlds and share them with other users. However, in a place where you can do anything you want virtually, you need funding, and digital currencies are the means to acquire it.
The blockchain powers both cryptocurrencies and the metaverse. The internet might be a distributed system, but the metaverse is decentralised; therefore, everyone who accesses it also owns it. Cryptocurrencies use the same decentralised system, so they’re connected. While the metaverse still has plenty to grow and evolve, the blockchain is quite established. Blockchains rely on networks of computers to verify the information and add it to blocks to create immutable records of data and transactions. Blockchain technology is a key pillar for digital currencies and the metaverse.
Metaverse blockchain allows users to create and own digital representations of items. They access, import, export, and use everything they want without the involvement of an intermediary. Metaverse users have complete autonomy over their experiences and can use virtual, augmented, or mixed realities to interact with the space and other users in the ways they prefer.
Non-fungible tokens are unique, and users cannot trade them for other tokens. They’re digital assets that power the growth of the metaverse because they represent valuable virtual items like videos, images, collectables, and other similar assets. The blockchain records NFTs’ ownership, which can be traded for other digital assets.
NFTs rely on smart contracts to enforce and automate agreements, making it easy for users to buy, sell, or use them. NFTs offer people access to metaverse events, festivals, and virtual land. Non-fungible tokens are also called metaverse tokens because they facilitate access to the ecosystem and enable users to do whatever they want. While some platforms offer access to virtual reality at no cost, most require payment, and users need to use cryptocurrency-based tokens like SAND, GALA, MANA, or APE. They trade tokens for virtual experiences, services, or items. They can also gain access to metaverse games. Metaverse tokens are recorded on the blockchain and are traded similarly to traditional digital currencies. The metaverse triggered the surge of the NFT market and provided crypto enthusiasts with new means to diversify their portfolios.