What is Metaverse and Where does Crypto fit in?

· 4 min read
What is Metaverse and Where does Crypto fit in?
The idea of a steady, interactive 3D cosmos that combines many virtual spaces is known as the Metaverse.

The idea of a steady, interactive 3D cosmos that combines many virtual spaces is known as the Metaverse.  Metaverse allows users to collaborate, interact, socialise and play together in 3D places.

Although the Metaverse isn't entirely realised, specific systems and components provide an exceedingly real experience. At the moment, playing video games offers the closest metaverse experience available. In more recent times, the definition of Metaverse gaming has been expanded by the development of virtual economies.

Metaverse and Crypto

Cryptocurrencies are a perfect use case for the Metaverse. They enable the development of a digital economy with different types of utility tokens and digital valuables (NFTs). Digital wallets like Trust Wallet and MetaMask would be helpful for the Metaverse. Additionally, blockchain technology can offer dependable and transparent governance structures.

People around the world have found steady streams of income from games like Axie Infinity, Splinterlands, SecondLife and Decentraland. These are some of the most successful play-to-earn games.
Whereas the roadmap of Metaverse gaming is being created by big tech giants, the decentralized character of the blockchain industry also allows smaller players to participate in the growth of the Metaverse.


The financial, virtual, and physical worlds are becoming increasingly intertwined. We have instant access to practically anything we desire, thanks to the technologies we use to run our lives. It also applies to the crypto environment. NFTs, blockchain games, and cryptocurrency payments are no longer only for crypto nerds. As a part of a burgeoning metaverse, they are all currently easily accessible.

What is the definition of a metaverse?

The Metaverse is an idea for a 3D online virtual environment that connects users in all facets of their lives. It would link several platforms, the same way in which the internet connects various websites that may be accessed using a single browser.

The idea was first developed in Neal Stephenson's science fiction book, Snow Crash. Although the concept of a metaverse was long considered a myth, it now appears that it might become a reality soon.

Augmented reality will power the Metaverse, with each user in charge of a persona or avatar. So you could, for instance, complete work and unwind in a blockchain-based game while wearing an Oculus VR headset in your virtual office, have a mixed reality conference there, and manage your cryptocurrency portfolio and finances inside the Metaverse.

The Metaverse integrates different elements like economies, digital identities, decentralised government, and other applications like enabling gaming and social media. Even today, user-created valued assets and currency ownership help form a unified metaverse. These attributes give blockchain the capability to power this emerging technology.

How does Crypto fit into the Metaverse?

Gaming offers the 3D aspect of the Metaverse but falls short of providing all the elements necessary for a complete virtual reality. The other essential components, like digital ownership evidence, value transfer, governance, and accessibility, can be provided by cryptocurrencies.

Cryptocurrencies also provide a secure way to verify ownership of virtual goods in the Metaverse, thereby providing a more secure gaming experience to the users.  
In contrast to the more centralised nature of video game creation, blockchain offers a decentralised and transparent method to implement the Metaverse.

GameFi and Decentralised Finance (DeFi) both frequently use gamification. Future predictions indicate that there will be enough overlap between the two realms for further integration.

The blockchain features that make sense for the Metaverse are:

1. Digital proof of ownership: You can immediately demonstrate ownership of a transaction or an asset on the blockchain if you have a wallet with access to your private keys. To establish accountability, you could, for instance, provide a transcript of your blockchain transactions while at work. A wallet is one of the safest and most reliable ways to establish a digital identity and proof of ownership.

2. Digital collectibility: Just as we can determine who owns something, we can also establish that an item is original and unique. It is crucial if the Metaverse includes activities from the actual world. We can design objects using NFTs that are entirely original and impossible to copy or forge. A blockchain can also represent physical item ownership.

3. Transfer of value: A trusted method of value transfer will be necessary for the Metaverse. The in-game currency in multiplayer games is less safe than cryptocurrency on a blockchain. Therefore, users will need a trustworthy currency if they spend much time in the Metaverse.

4. Governance: Users should be able to control the rules of their interactions with the Metaverse. Real-world voting rights allow us to choose our leaders and governments. Blockchain has already shown that it can get deployed to achieve fair governance in the Metaverse.

5. Accessibility: On public blockchains, anyone can create a wallet. You don't need to pay or supply information contrary to a bank account. It makes it one of the easiest methods to manage money and a digital identity online.

6. Interoperability: Platform compatibility gets improved by blockchain technology. Avalanche (AVAX) and Polkadot (DOT) are the projects that make it possible to build unique blockchains that can communicate with one another. Multiple projects will need to be connected by a single metaverse, and blockchain technology has already developed solutions.

Some examples of Metaverse

Some several platforms and projects are similar to the Metaverse, even if there isn't currently a single, connected metaverse. These frequently include NFTs and other blockchain components. Let's examine three instances:

SecondLife: Users manage avatars in SecondLife, a 3D virtual world where they can interact, learn, and do business. An NFT marketplace is also available for trading collectables through the initiative. As part of its first anniversary in September 2020, SecondLife hosted Binance Smart Chain's Harvest Festival. Users could explore and engage with many initiatives from the BSC ecosystem during the virtual fair.

Axie Infinity: Axie Infinity is a play-to-earn game that has allowed players in underdeveloped nations to make a reliable living. A player can begin farming the Smooth Love Potion (SLP) token by buying or receiving three Axies creatures. Depending on how much they play and the market price, someone might profit between $200 and $1000 (USD) when sold on the open market.

Decentraland: Decentraland is a virtual, online environment where social aspects combine with NFTs, cryptocurrencies, and virtual properties. In addition, participants actively participate in the platform's governance. For example, NFTs represent cosmetic collectables in games on the blockchain. In the game, players use MANA to buy 16x16 meter land parcels. Thus, a complicated crypto-economy gets created.

Closing thoughts

We are already witnessing trends that may result in creating a single, unified metaverse, even though that still may be a long way off. It appears to be yet another sci-fi use for cryptocurrency and blockchain technology. Uncertainty exists around when we will actually get to the Metaverse. However, in the interim, we may already participate in projects resembling the Metaverse and continue to incorporate blockchain more and more into our daily lives.