Key Takeaway: The Metaverse is a collective digital extension of the physical world that exists across multiple different virtual spaces. The introduction of blockchain technology has helped Metaversal advancement tremendously. The Metaverse can be thought of as the future of interaction, transaction & socialization on the internet, where users can work, meet, game and socialize with each other in 3D virtual reality.
The world is becoming more and more digital. That’s a fact. However, until recently, what was unknown was how the merging of the physical and digital worlds would come about to create a universal reality – a world that exists across multiple realms.
Advancements in AI and AR have made significant progress however their efforts have only enhanced virtual experiences. What they have failed to do is offer a solution on how to merge the physical and virtual worlds into one. But with the introduction of blockchain technology, it seems like there might now be a way to combine multiple different realities into one single world in ways that seemed almost impossible just a few years ago.
I’m talking about the Metaverse, and in this article we’re going to explain what the Metaverse is, why it’s significant and why blockchain technology is the best infrastructure to build the Metaverse on.
What is the Metaverse?
The Metaverse is a collective version of realities that exist digitally and can be thought of as digital extensions to the physical world. In the Metaverse, individuals can interact with each other similarly to how they can in the physical world. They can work, play, transact and socialize with each other and it’s even possible to interact with businesses and services too.
The Metaverse is very similar to the real world considering that space is finite and experiences happen in real time. It even has its own functioning economy where individuals can buy, sell and trade goods and services with other users and businesses. But what makes the Metaverse unique is that it exists alongside the physical world, acting as a bridge between physical and virtual realities.
Essentially, it becomes an additional layer to the real world that opens up endless possibilities for human interaction, transaction and commerce in ways that previously seemed impossible. This presents opportunities for users worldwide to interact with each other in ways similar to the real world, but not constrained to the scientific boundaries, as if they were next to each other.
What gives the Metaverse value?
What gives things in the real world value also gives things in the Metaverse value too. Ultimately, value is just human perception. And because virtual socialization looks inevitable – we’re now witnessing more and more people choose to interact in the virtual world – things like space, real estate and assets in the Metaverse have seen tremendous growth. Right now, the societal shift towards interacting in completely virtual worlds might seem insignificant. But thanks to the unique nature of blockchain technology and the immense capabilities of smart contracts, possibilities in the virtual world are growing and they’re already far greater than those in the physical world. More capabilities than the physical world, combined with the allure of interacting in virtual realities that are built upon principles of authenticity and scarcity will mean that naturally the price of Metaversal assets will continue to rise.
How does blockchain technology & crypto fit into the Metaverse?
Although they’re not required for the functioning of a Metaverse, cryptocurrencies make a great addition to the Metaverse. They allow the creation of a digital economy that can support the trading of virtual assets as if they were physical goods. On top of that, blockchain technology also provides transparent and reliable governance systems, enables digital proof of ownership and enables the Metaverse to be accessible to all due to its permissionless nature.
While a single Metaverse to rule-them-all is unlikely in the near future, we can already see developments that may lead to the creation of a universal digital world. For some, this sounds too much like something out of a Sci-Fi film. However, for crypto natives and tech-savvy people, the potential to be living in virtual worlds is something that seems like it’s a matter of when not if. And while this universal digital reality is still far away, we’re already starting to see more and more Metaverse-like projects continue to integrate blockchain into their functionality.
As virtual socialization continues to occur, and more people adopt the Metaverse as their “second home” then we can be sure that the price of Metaverse-based assets will increase thanks to tokenization. This is why there has been much hype surrounding the Metaverse because there’s a possibility of buying ownership in a world that is yet to see mass adoption. When it does, one can only imagine the potential of profits that will be made.