Metaverse is a persistent, online, 3D universe concept. It combines multiple different virtual spaces. It can be regarded as the future iteration of the Internet. Metaverse will allow users to work, meet, play and socialize together in these 3D spaces.
The metaverse does not exist entirely. But some platforms contain elements similar to metaverses. Video games currently provide the closest metaverse experience. Developers break the boundaries of games by holding in-game events and creating a virtual economy.
Although not required, cryptocurrency is very suitable for metaverse. They allow the creation of a digital economy with different types of utility tokens and virtual collectibles (NFT). Metaverse will also benefit from using encrypted wallets, such as Trust Wallet and MetaMask. In addition, blockchain technology can provide a transparent and reliable governance system.
Blockchain and Metaverse-like applications already exist and provide people with a livable income. Axie Infinity is an income-generating game, and many users maintain their income by playing games. SecondLive and Decentraland are other examples of successful hybrid blockchain world and virtual reality applications.
What is the definition of metaverse?
Metaverse is an online, 3D, and virtual space concept that connects all aspects of users’ lives.
This concept was developed in Neil Stephenson’s science fiction novel “Avalanche.”
However, Metaverse used to be a fictional idea. It now looks like it may become a reality in the future.
Augmented reality drives Metaverse. Each user controls a role or avatar. For example, people can use Oculus VR headsets in a virtual office to participate in a mixed reality meeting, to complete work and relax in a blockchain-based game. Then people manage crypto investment portfolios and finances in Metaverse.
Certain aspects of Metaverse can be seen in the existing virtual video game world. Games such as “Second Life” and “Fortnite” or work social tools such as Gather.town integrate many elements of our lives into the online world. Although these applications are not Metaverse, they are somewhat similar. The metaverse still does not exist.
In addition to supporting games or social media, Metaverse will also incorporate economics, digital identity, decentralized governance, and other applications. Even today, the creation and possession of valuable objects and currencies by users also contributes to the development of a single, unified metaverse. All these functions provide the blockchain with the potential to power this future technology.
Why are video games related to metaverse?
Due to the emphasis on 3D virtual reality, video games currently provide the closest virtual world experience. However, this is not just because they are 3D. The services and functions currently provided by video games have penetrated into other aspects of human life. The video game Roblox even hosts virtual events such as concerts and parties. Players are no longer just playing games. They also use it for other activities and part of life in “cyberspace.” For example, in the multiplayer game Fortnite, 12.3 million players participated in Travis Scott’s virtual in-game music tour.
How does crypto fit into the metaverse?
The game provides the 3D aspect of Metaverse. But it does not cover everything needed in the virtual world that can cover all aspects of life. Encryption can provide the other key components needed, such as digital proof of ownership, value transfer, governance, and accessibility. But what exactly do these mean?
If people work, socialize, and even buy virtual items in the Metaverse in the future, people need a safe way to show ownership. People also need to safely move these items and money around Metaverse. Finally, if it occupies such a large part of people’s lives, people will also hope to play a role in the decisions that take place in the metaverse.
Some video games already contain some basic solutions. But many developers use encryption and blockchain as better options. Blockchain provides a decentralized and transparent way of processing topics, while video game development is more centralized.
Blockchain developers are also affected by the world of video games. Gamification is common in Decentralized Finance (DeFi) and GameFi. It seems that there will be enough similarities in the future that the two worlds may become more integrated.
The key aspects of a blockchain suitable for Metaverse are:
- Proof of digital ownership: By having a wallet with an accessible private key, people can immediately prove their ownership of activities or assets on the blockchain. For example, people can display accurate records of transactions on the blockchain at work to show their sense of responsibility. Wallets are one of the safest and most reliable methods for establishing digital identity and proof of ownership.
- Digital collection: Just as people can determine who owns something, people can also prove that an item is original and unique. This is very important for the metaverse who wants to integrate into more real life activities. With NFT, people can create objects that are 100% unique and can never be accurately copied or forged. Blockchain can also represent the ownership of physical items.
- Value transfer: Metaverse needs a safe transfer value method trusted by users. In-game currency in multiplayer games is not as secure as cryptocurrency on the blockchain. If users spend a lot of time in the metaverse or even make money there, they will need a reliable currency.
- Governance: The ability to control the rules of interaction with metaverse is also important to users. In real life, people can have voting rights in companies and elect leaders and governments. Metaverse still needs a method to achieve fair governance, and blockchain is already an effective method.
- Accessibility: Creating a wallet on a public blockchain is open to anyone around the world. Unlike bank accounts, people don’t need to make any payments or provide any details. This makes it one of the most convenient ways to manage finances and online digital identities.
What is Meta Festival work?
The Meta Festival will bring all aspects of life together in one place. Although many people are already working from home, in Metaverse, people will be able to enter the 3D office and interact with their colleagues’ avatars. People’s work may also be related to the Metaverse and provide people with income that can be directly used in the Metaverse. In fact, this type of work already exists in a similar form.
GameFi and game earning models now provide a stable source of income for people all over the world. These online jobs are excellent candidates for the future implementation of Metaverse, because they show that people are willing to spend time living and making money in the virtual world. Money games like Axie Infinity and Gods Unchained don’t even have 3D worlds or avatars. However, the principle is that they can become part of the metaverse as a way to make money entirely in the online world.
Although there is no separate, linked Metaverse yet, there are already many platforms and projects similar to Metaverse. Usually, these also include NFT and other blockchain elements. Let’s look at three examples:
SecondLive is a 3D virtual environment. The user can control the avatar used for social networking, learning and business. The project also has an NFT market for exchanging collectibles. In September 2020, SecondLive held the Binance Smart Chain Harvest Festival as part of its first anniversary. The virtual expo showcases different projects in the BSC ecosystem for users to explore and interact.
Axie Infinity is an income-generating game that provides players in developing countries with an opportunity to earn a stable income. By buying or giving away three creatures called Axies, players can start to grow Smoothing Love Potion (SLP) tokens. When sold on the open market, someone can earn approximately US$200 to US$1,000 (USD), depending on how much they play and the market price.
Although Axie Infinity does not provide a single 3D character or avatar, it provides users with job opportunities similar to Metaverse. Filipinos now use it as a substitute for full-time jobs or benefits.
Decentraland is an online digital world that combines social elements with cryptocurrency, NFT and virtual real estate. In addition, players also play an active role in the governance of the platform. Like other blockchain games, NFT is used to represent cosmetics collectibles. They are also used in LAND, which is a 16×16-meter plot that users can purchase using the cryptocurrency MANA in the game. The combination of all these creates a complex encryption economy.
What is the future of Metaverse?
Facebook is one of the loudest voices that created a unified metaverse. Thanks to Facebook’s Diem stablecoin project, this is particularly interesting for crypto-driven metaverse. Mark Zuckerberg clearly mentioned that he plans to use the Yuan Festival project to support remote work and improve financial opportunities for people in developing countries. Facebook has a social media, communication, and encryption platform, which provides a good start for bringing all these worlds together into one. Other large technology companies are also aiming to create a metaverse, including Microsoft, Apple and Google.
When it comes to encryption-driven metaverse, the next step seems to be further integration between the NFT market and the 3D virtual world. NFT holders can already sell their products from multiple sources in markets such as OpenSea and BakerySwap, but there is currently no popular 3D platform. On a larger scale, blockchain developers may develop popular metaverse-like applications that have more natural users than large tech giants.