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The metaverse recently came under the spotlight when parent company Facebook, which also owns Snapchat, Instagram and Whatsapp, renamed itself “Meta.” However, the metaverse is not a new concept. Even before Facebook was announced, big names like Disney and Microsoft were exploring the potential of the metaverse as a virtual reality space. Let’s consider what it is and how it functions, as well as what role cryptocurrency and NFT play in this concept.
What is the metaverse?
Meta CEO Mark Zuckerberg views the metaverse as an immersive platform that will replace the Internet. It will be a place where users will not only watch content, but also experience life through augmented reality. However, as noted earlier, the metaverse is not a new concept. The idea was first formulated in 1992 by author Neil Stevenson in his novel Snow Catastrophe. In the novel, Stevenson created 3D avatars in a virtual environment. Games like Minecraft and Fortnite have taken elements of this idea and used them to design their games.
Basically, the metaverse is a virtual world in which people can do almost everything that they can do in the real world. The Metaverse will offer a virtual space and virtual economy where people can work, earn, buy and sell real estate, have fun, play games, create art, make payments, and engage in daily activities that parallel their real life. The Metaverse is a combination of augmented and virtual reality. It helps people and communities interact with each other on social platforms. They create 3D avatars and also allow people to perform extreme physical activities that would be impossible in reality.
The COVID-19 pandemic and the ensuing global isolation have been important reasons why the concept of the metaverse has become so popular in the past two years. The people who remained at home were looking for a way to escape. Online games have become popular not only among young people, but also among adults. The online gaming industry has taken advantage of the metaverse concept and released many new products to go to market. For example, Microsoft is developing XR (augmented reality) applications based on virtual and augmented reality and holograms.
The main idea of the metaverse is to help people interact in a virtual environment. People can hold meetings and conferences in a holographic digital world. This concept has great potential to transform the economy. Experts believe it can grow into a trillion dollar industry and provide opportunities and jobs for millions.
The role of cryptocurrency in the metaverse
Cryptocurrencies are virtual assets that are used around the world to make payments for digital transactions, and the virtual economy of the metaverse requires a virtual asset to operate. In this case, the most obvious choice is cryptocurrency. They exist and are available all over the world and act as a secure, decentralized and transparent payment method. Many metaverse platforms are based on decentralized blockchain networks and use cryptocurrencies. Introducing cryptocurrency into the metaverse would have many positive consequences, such as:
- The cryptocurrency is decentralized and not subject to control by any centralized authority;
- You don’t need permission to do this;
- The cryptocurrency uses high-speed transactions;
- It provides complete anonymity for the user, keeping users safe;
- Blockchain provides users with an open collaboration platform;
- Blockchain provides the buyer with digital proof of identity and ownership;
- Participants can take part in the decision-making process in the communities of the metaverse;
- Cryptocurrencies like Polkadot and Avalanche can create interactive blockchains. This allows the various ecosystems of the metaverse to communicate with each other.
The role of the NFT in the metaverse
NFTs, or non-fungible tokens, play a critical role in the future of the metaverse. This is because NFTs work with blockchain technology and use cryptocurrency tokens to provide ownership of virtual artwork, digital items, sports cards, virtual real estate, music, videos, and game items.
NFTs work on smart contracts. So, a user who wants to buy virtual property in the metaverse can do so using NFT smart contracts. This transfers ownership to the purchaser. Cryptocurrencies in this case become the only token that will be accepted for all these virtual transactions. People can also participate in virtual games by earning cryptocurrency rewards. In games, buyers and sellers can use an avatar and create a virtual identity to purchase NFT properties, artwork, or music videos from the metaverse platforms.
NFT’s projects include MetaCity, a gaming platform in the metaverse similar to Minecraft. The platform allows users to buy and sell NFT plots, and grow their business. It also offers a cross-play feature where players can trade in-game items between games. MetaCity also provides free NFT drops where users can receive rewards. Another unique feature of the platform is that users can create an economy or make a living of their choice with NFT characters.
Sorare is a soccer fan game based on the Ethereum blockchain network. There are currently 180 licensed football clubs operating. Players can use game cards to create virtual teams and earn rewards based on the team’s performance.
The most famous projects
Decentraland
The Metaverse Decentraland project uses MANA, which is the platform’s own cryptocurrency. It provides its users with a control protocol and the currency can be used for actual transactions. Platform users can create customized virtual avatars and play games. They can visit virtual casinos and receive rewards. Members can also buy and sell land at auctions, and buy NFT products with MANA currency. The total market valuation for Decentraland is $ 5 billion.
Sandbox
Sandbox is very similar to Decentraland, where SAND acts as the platform’s virtual currency. It is a virtual community platform where users can communicate with each other. They can also buy and sell real estate and generate income. The Sandbox project is also endorsed by big names in the music industry including Snoop Dogg and Deadmau5. Sandbox is currently slightly behind Decentraland. Its total market capitalization is $ 2.3 billion.
JEDSTAR
JEDSTAR is a Decentralized Finance (DeFi) project as well as a Gamification Funding Project (GameFi). He released a new token called KRED. He can be used in his new CCG (Collectible Card Game), MMORPG (Massively Multiplayer Online RPG with the Metaverse) and the NFT Marketplace. STARDOME will also be launched. An initiative that allows users to buy and sell KRED through their regular payment methods.
The Metaverse is still in its infancy and it is too early to predict its future. However, virtual or augmented reality has come a long way. Many experts believe that the potential of the metaverse is just beginning.
#NFT #cryptocurrency #metaverse
