The relationship between blockchain and the Metaverse has strengthened in the Web3 environment, with the popularity of non-fungible tokens (NFTs) and cryptocurrencies increasing. In 2022, 7% of US residents were unaware of NFTs, but since 2021, recognition has risen significantly. Adoption of NFTs rose between 2021 and 2022, with 7% of non-NFT holders planning to buy in the coming year.
Rise of Blockchain
Due to its end-to-end encryption, transparency, and P2P network features, blockchain was launched in 2008 and has witnessed significant growth in its implementation in the industries. It can be used to share data sets, but these big three cryptocurrencies, like Bitcoin, Ether, and MANA, have gained more attention.
The Metaverse with Blockchain: A Legal Model?
Moreover, organizations have started developing standards and more extensive use cases for the blockchain. To establish guidelines, ethics, and frameworks for using the blockchain for public benefit, organizations, and various governments have teamed up.
Despite current uncertainties around Bitcoin, this is expected to change the global immersive business. Even if platform exchanges file for bankruptcy owing to fraud and unstable markets, the growth of digital Web3 assets is expected to keep growing.
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The Role of Blockchain and the Metaverse
The Metaverse, the next stage of computing that combines the Internet and spatial computing, will enable users to communicate with digital assets in virtual surroundings. The Metaverse will stay persistent, real-time, interoperable, and decentralized, according to consensus.
Cryptocurrencies can monetize Metaverse interactions by allowing users to purchase and sell digital assets, NFTs, real-world products, and other compatible digital objects across platforms.
The future metaverse’s decentralized design would preclude individuals or organizations from owning and dominating the platform. Decentralization will be ensured via protocols, technology, and global norms. By extending the Metaverse into the real world, AR and MR devices, including headsets, tablets, and smartphones, would be used. The blockchain would allow for unlimited combinations of physical and digital (phygital) resources.
Practical Examples of Blockchain and Metaverse
1. Assets in-game that can not be modified: Players can earn crypto, NFTs, and other digital assets by participating in play-to-earn (P2E) gaming platforms. At that point, people could convert coins into fiat money and the other way around. Gamers might also move their digital assets to different platforms. This enables the transfer of assets from a custodial (centralized) to an identity (owned by the users). Numerous platforms are already facilitating global gaming communities.
2. Identity Verification: Blockchain technology has been used by metaverse systems to validate user data and gain access to key infrastructure. Government agencies have used NFTs and blockchain technology to track citizen information, access medical files, and provide secure services. Organizations have also used blockchain data to create employee educational and teaching metaverses.
3. Real Estate in the Metaverse: Virtual real estate has grown in popularity in the immersive business because of platforms. Decentralized autonomous organizations or DAOs, are also granted permission to acquire real estate, allowing anyone looking to jump on the property ladder to do so. Several property companies have created blockchain-powered DAOs in order to take part in the crypto-investing property boom.
4. Incentives for Creators: Creatives all around the globe are using blockchain technology to purchase and sell artwork, create a global market for their products, and settle disputes to combat fraud and plagiarism.
Final Thoughts
The Metaverse is a three-dimensional universe in which users may interact with three-dimensional people, items, and locations. Web3 allows users to develop, own, sell, and acquire content, and charge for their products. Researchers must monitor the system to see if it deepens or integrates in the future.
