If the last century is known to be an era of mass production and the rise of the internet, the 21st century might be known for creating and expanding the virtual world or what is now known as the Metaverse. It promises to be far more immersive, interactive, and collaborative than what the internet has accomplished so far.
We talked about the ins and outs of the Metaverse in our previous blog A DEEP DIVE INTO THE METAVERSE, so make sure you check that one out before proceeding!
Plenty has been written about the metaverse, and especially with Facebook (now Meta) so actively involved in this space, there is bound to be debate about how this sector will evolve. That being said, the metaverse is also a tremendous opportunity for blockchain and crypto assets to move to the mainstream. Let’s see how!
The Connection between Blockchain and Metaverse
It is not hidden that blockchain games, NFT creators, and major corporations are looking to acquire space in the Metaverse. But what’s the inevitable link between the two?
Well, the metaverse and blockchain are not concepts that have evolved and exist in isolation. Their true potential will be unlocked when they are applied together. Simply due to the fact that they have many features and functions that complement each other, enabling them to converge in ways that make them more than the sum of their parts!
The metaverse is essentially virtual reality and engaging with virtual reality applications, which has been discussed quite a lot recently, but something that has gone undiscussed is the implications and impact of blockchain and crypto on this innovative idea. The metaverse needs crypto in order to operate as advertised.
Let’s see a few facts as to why it is so!
Blockchain is immutable. Blockchain and blockchain platforms have proven, to this point, to be unhackable and immutable, which is critically important if any virtual reality platform is to achieve mainstream adoption. Specifically, if an individual or group of individuals are going to be engaging with other people in a virtual environment there needs to be some form of assurance that these transactions are secure.
Blockchain enables not only instantaneously confirmed information but also enables these transactions to be cryptographically secured and protected.
The other most obvious use case is for blockchains in the metaverse – money! Blockchains – the foundation of cryptocurrencies like Bitcoin, Litecoin, and Ether. If the metaverse promises to open up a “Ready Player One” type virtual world, where we can play, work and socialize in immersive environments, one of the most popular activities people are going to want to take part in while they are there is shopping and buying things!
However, buying things is likely to just be the beginning of blockchain-based money in the metaverse. The fast-growing field of DeFi is perfectly suited to operating within virtual worlds and environments, and we can expect to find metaverse-based lending, borrowing, trading, and investing becoming increasingly popular.
Even with the associated price volatility with bitcoin and other cryptocurrencies, the rise of stablecoins and central bank digital currencies (CBDCs) means that the ability to conduct transactions via crypto has never been easier.
Another important metric is instant transactions. For a truly virtual reality environment to work and function as advertised there will need to be transactions that occur on a secure and almost instantaneous basis.
Specifically, the individuals that are a part of this ecosystem will
- need to be able to transact and interact as easily as if they were in person
- have the confidence that these transactions will be completed
With the ability to seamlessly convert from fiat currencies to cryptocurrencies, people will switch between the physical world and the Metaverse with relative ease.
Gaming, NFTs, and Decentralization
The ability to earn by playing a game has transformed the lives of many players. Such is the case of the 27-year-old chemistry Ph.D. from Columbia University who left his job at Goldman Sachs at the height of the pandemic and is now seeking out his fortune in crypto by playing video games.
He has recruited dozens of people from Mexico to the Philippines to a “Guild” that plays under the command of “Captain” Peurifoy. In exchange, he ponies up the funds needed to enter Axie Infinity. Gaming will undoubtedly be one of the most exciting use cases for the metaverse, and once again, innovation in this space is being driven by blockchain.
The boom of games like Axie, in which over a million daily active users train and fight digital creatures and the winners are rewarded with the cryptocurrency SLP, with the best ones said to be making around $250 per day – a significant income in the developing countries where the game is most popular!
This shows why tech titans are gravitating toward the concept: The metaverse and its possibilities have the potential to upend not just how we work, earn and spend, but also the fundamental ways in which we live, plan and run our lives. In essence, they promise to transform the way capitalism functions.
The skyrocketing popularity of Metaverse-focused projects is, in large part, thanks to its adoption by popular culture and well-known celebrities who have discovered the potential that exists within NFT technology.
Data shows that while the price of Bitcoin dropped below $57,000, the price of Metaverse tokens climbed higher, including a 160% gain for Gala (GALA), a 78% rally for WAX (WAXP), a 62% breakout for The Sandbox (SAND) and 45% for Decentraland (MANA).
BTC/USDT vs. GALA/USDT vs. WAXP/USDT vs SAND/USDT vs. MANA/USDT 4-hour chart.
From Post Malone purchasing Bored Ape Yacht Club (BAYC) NFTs that were featured in the music video “One Right Now,” to globally recognized brands like Gucci and Coca-Cola launching their lines of branded NFT merchandise to engage with customers, the road to mass adoption is paving a route through the Metaverse.
Blockchain and its capacity to enable smart contracts and decentralized autonomous organizations (DAOs) offer the possibility of alternate digital realities that aren’t under the ownership of Silicon Valley mega-corporations. They can be “owned” by the people who use them and governed by taking part in secure voting processes and utilizing advanced blockchain functions such as staking.
The unique structure of blockchain games can open up more equitable engagement opportunities for participants. It also means that ownership of the metaverse itself is shared amongst its participants. Even if the original creators of the metaverse blockchain were to walk away, the game itself could continue to exist in perpetuity.
Blockchain promises to make the metaverse interesting and simpler even. It opens up a plethora of interactive features that are sure to attract users.
Booming Blockchain and Crypto Projects in the Metaverse
The Sandbox (SAND)
The Sandbox is a blockchain game where users explore a virtual world containing NFTs, user-created environments, and other content. Founded as a mobile game in 2011, The Sandbox has developed into a complex game on Ethereum using ETH, and the token SAND to power its in-game economy.
Players create their avatar and digital identity, a key concept for the metaverse. An avatar can be associated with a crypto wallet to manage a player’s NFTs, SAND tokens, and other blockchain assets.
Decentraland is a 3D universe where players develop their plots of land, host events, create content, and engage in other social activities.
The core economy of Decentraland is based on blockchain to establish digital identities, ownership, and rarity for unique items. It’s one of the most famous and well-known projects predating the big metaverse craze in late 2021.
With more projects connecting to Decentraland, it also has the aspect of a metaverse hub. Decentraland is also particularly famous for its virtual real estate NFT called LAND. Decentraland’s DAO, LAND has seen a huge rise in its price, making it popular among traders and investors.
Enjin is a blockchain platform focused on the creation of NFTs used as in-game items. The project has released software development kits (SDKs) to make generating Ethereum-based NFTs simple for the average user. As NFTs have already become a key part of the metaverse, Enjin has looked to create a more secure way for people to mint them.
An Enjin NFT can always be melted in return for ENJ coins. This means that NFTs will always have some value, as long as the price of ENJ doesn’t reach zero.
Bloktopia is another VR metaverse game set in a skyscraper with 21 floors. Similar to Decentraland and The Sandbox, Bloktopia aims to be a hub for events, socializing, work, and more. The 21 floors represent Bitcoin’s maximum supply of 21 million BTC.
The project uses the Polygon blockchain to support its four main aspects: learn, earn, play, and create.
There is still a long way to go in the development of the metaverse. However, one thing for certain is that the number of new projects keeps increasing. No matter if it’s a large gaming company or a small metaverse crypto project, development is happening rapidly.
Clearly, the metaverse is still an emerging and fast-growing area, but the underlying truth is that – to facilitate and utilize the full potential of a functioning metaverse – blockchain and crypto assets will need to play a prominent role in the future implementation of this idea.
In order to realize the true potential of this space, there will need to be a transparent and traceable method to conduct transactions and interact with each other; blockchain and crypto assets are crucial to this need.
The metaverse may, and deservedly so, make headlines, but the blockchain is a key component to having this technology reach its full potential!
ImmuneBytes is a Blockchain security auditing firm that employs the industry’s best tools and practices to provide a comprehensive smart contract audit. We have a team of robust and experienced security professionals who are adept at their niches and provide you with quality service. We have worked on 175+ projects spread across the world on different Blockchain frameworks with some of the industry’s top firms and we continue to unfold the decentralized movement.
We are also providing consultancy, coming up with a bug bounty platform, and also an insurance product to provide our clients with a hassle-free security product catalog. Stay tuned.
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