What Is Metaverse In Blockchain? A Complete Guide For Businesses
Before we begin our discussion about the metaverse in blockchain, let’s dive deeper into what the metaverse is all about.
“Metaverse,” a term coined in the world of science fiction, is the amalgamation of the prefix “meta,” meaning ‘going beyond’ and “verse,” meaning ‘universe.’
It refers to the shared virtual worlds where commodities are bought and sold, often through cryptocurrency. In the virtual environment of the metaverse, people meet, attend events, and purchase goods and services.
The concept has surged during the pandemic as lockdown forced people to shift their business online. Most of the top metaverse companies are now powered by blockchain technology utilizing non-fungible tokens (NFTs) and cryptocurrencies which allows a new kind of decentralized digital asset to be owned, built, and monetized.
How is Metaverse Related to Blockchain?
Being a three-dimensional virtual reality space, the metaverse is a world of digital objects with immersive surroundings. It is easy to manage and has several other benefits like self-sustenance, persistence, infinite, interoperable, and decentralized.
Yes, the metaverse is indeed a bunch of interconnected virtual spaces, but it is something more than that. What sets metaverse apart from today’s internet is blockchain technology. By hiring blockchain development companies, more and more businesses are now exploring the metaverse world.
Web 3.0 will be the main foundation for the metaverse. It will include a blockchain-enabled decentralized application that would support the economy of user-owned crypto data and assets.
And if you are still wondering what blockchain stuff has to do with metaverse, then it has actually got everything to do. To start with, blockchain allows you to purchase digital goods in a virtual world, which won’t be possible without cryptocurrencies like Bitcoins. You don’t just own NFT in the real world, but you will also own it in the virtual world.
Before blockchain technology, the metaverse was incomplete as everything was stored in a centralized network. Thanks to the advent of blockchain, whose capacity to work as a global digital source by Crypto makes decentralization possible. Blockchain and Crypto are the best examples of a live metaverse. Companies like Epic Games, Fortnite, Minecraft, Facebook, and several other gaming platforms are now building metaverse technology that makes the virtual world possible.
Perks of Leveraging the Blockchain in the Metaverse
It has now become quite obvious that blockchain technology can meet all the specific requirements of the metaverse. Let’s have a look at a few advantages that blockchain technology in metaverse has to offer:
The fact that metaverse generally stores data measured in exabytes raises the question of transmission, safe storage, and synchronization. Blockchain, in this sense, is very relevant in the context of decentralization of data processing nodes and storage.
To ensure the complete functioning of the metaverse, all participants must come together in the same virtual world. A decentralized ecosystem that is completely based on blockchain technology will allow the synchronization of thousands of independent nodes.
Blockchain is all about the presence of tokens where the secure storage devices are capable of transmitting personal data, virtual content, and authorization keys in the encrypted form. In this regard, the blockchain in the metaverse builds the user’s trust in the ecosystem because of the fact that confidential information won’t be easily available to third parties.
Blockchain also facilitates the functioning of joint interoperability in different interfaces and systems without restriction. This is mainly relevant when it comes to the NFT valuation. Although the metaverse for business is still at an evolving stage, it is actually offering newer ways to connect with a wider group of users.
Blockchain has now made it possible to effectively regulate legal, economic, social, and other relations between the participants of the metaverse ecosystem. Along with this, smart contracts allow you to develop and implement the rules for metaverse operation.
Use Cases of Blockchain in the Metaverse
Blockchain can be applied in various ways in developing and operating the metaverse. Below are some of the key examples of how this technology is being utilized:
Settlements are one of the most obvious things in blockchain technology within the metaverse. Since offline trading is now giving way to online stores and the consumption of people is increasing, the day is not far when customers would start purchasing from the virtual stores.
We can also be sure that cryptocurrency will soon find its application in the centralized ecosystem. One of the most popular use cases of blockchain utilization in Decentraland.
Decentraland is an Ethereum-based virtual world where the users can interact, play and explore with each other. It also allows people to build their own surroundings and buy virtual lands, marketplaces, and applications. It is a 3D virtual reality decentralized platform that utilizes the Ethereum blockchain.
Many blockchain experts have predicted that the virtual assets that are being utilized by the players will be displayed in the form of NFT metaverse tokens. In due course of the gameplay, the players would be able to earn a real money that can be utilized as a mode of payment within a particular ecosystem.
The introduction of blockchain technology into the games for players means that even if they come out of the game or delete it, their assets will remain safe. The best example of this breakthrough technology is the game called The Sandbox. This game takes the virtual world form with an integrated Ethereum-based cryptocurrency. The Sandbox has already seen the presence of the most popular brands in its metaverse ecosystem.
As per experts, the NFTs or the non-fungible tokens will play a key role in the metaverse world. Acting as proof of ownership of the digital assets, the NFT tokens will be involved in the sale and purchase of digital art.
Other than that, NFT has an enormous potential to be directly integrated into any kind of crypto metaverse project related to the purchase of avatars, games, assets, and so on.
Future of Metaverse
It is still unclear if a true metaverse will exactly mirror the actual life as it is yet in an evolving stage. Several blockchain-based metaverse platforms are still busy working on AR and VR technology to finally allow users to interact in a decentralized ecosystem.
Business Giants like Facebook Inc, Microsoft Corp, and Alphabet Inc-owned Google have already invested in virtual reality and cloud computing companies to anticipate the industry’s expansion.
Blockchain is a clearly necessary technology for the prime elements of the metaverse that includes money transfer, digital proof of ownership, governance, interoperability, and accessibility. However, the principal challenge is to choose a project that will appeal to the users and attract new participants, thereby increasing capitalization and boosting the value of digital assets that are affiliated with a particular metaverse.
If you need in-depth insight and expert guidance in utilizing metaverse technology for your business, then connect with the best blockchain development company today.