Metaverse Explained: What is the relationship between the Crypto and Metaverse?

Facebook, Apple, Google, Microsoft, Roblox, Tencent, Baidu… most of the Tech Giants have already invested in the Metaverse, an online 3D universe where creative economies can be built. More than billions of people will engage in the metaverse with more richness in the future.

If we want to work, make friends, build connections and do transactions in the metaverse, crypto and the technology behind it, Blockchain, will act as an infrastructure that is crucial to all activities in the metaverse.

In the following article, we will introduce the role played by crypto in the Metaverse and the future development of it.

What is the Metaverse?

Metaverse is an online 3D virtual space that allows users to connect with each other similar to the real world. It is a concept introduced by Neal Stephenson, a science-fiction novelist in his book “Snow Crash”.

The engagement in the metaverse will be more rich in the future. People can create their own world and connect with different people all over the world virtually like a face-to-face meeting that can interact with each other at any time, anywhere.

With the help of the VR/AR headset, the metaverse will be driven by augmented reality. You may have a virtual meeting with your colleagues, buy and hold Blockchain-based assets, or participate in virtual games as leisure.

How do cryptos contribute to the development of the metaverse?

Metaverse is not only for playing games or socializing. With the help of Cryptos and the Blockchain technology, it becomes a creative economy that combines digital proof of ownership, decentralized governance, and peer-to-peer transactions. People may make money and develop a second life in the metaverse just like the real world.

How can people recognize who we are in the metaverse? How can we prevent our identity from being stolen by anyone? If we want to purchase an asset in the metaverse, how to protect the rights of both buyers and sellers without any intermediary or regulations?

With the Blockchain technology, the proof of ownership of an asset, transaction, identity verification and rights of the users can all be done and protected safely. Metaverse will become a user-friendly environment that allows everyone to participate.

In the following, we will introduce how cryptos contribute to different areas in the metaverse.

Transaction: If a game player wants to purchase a valuable asset in the game with other players, they need a reliable currency that can transfer value securely. We take Bitcoin as an example, the privacy and security of Bitcoin transactions are secured. Bitcoins enable buyers to complete transactions without disclosing any confidential financial information.

On the other hand, every cryptocurrency transaction is recorded on the blockchain. This transaction history of Bitcoins can be traced to stop people from spending coins they do not own, making copies or undoing transactions.

Identity verification: A wallet is one of the most secure methods for establishing a digital identity that cannot be stolen by other people easily as the data are stored on the Blockchain.

Proof of ownership: By owning a wallet with access to the private keys, the ownership of an asset on the blockchain can be proved instantly. For example, you could show an exact tran of your transactions on the blockchain. As we all know, the transaction records stored on the Blockchain can not be changed easily as it is irreversible.

Governance: With the help of Ethereum, people can build a smart contract on it. The smart contract will manage the agreement itself without interruption and management from any parties. People can create a more fair and transparent environment with the help of the smart contract without any centralized organization.

What is the future of Metaverse?

Facebook announced to change its name from Facebook to Meta in order to show its vision on engaging in building the metaverse. Tech Giants including Apple, Google, Microsoft, Roblox, Tencent, Baidu have invested in both hardware and software of the metaverse, such as augmented reality (AR), virtual reality (VR), and platforms.

In conclusion, we have still waited for a long time to see a mature metaverse that allows us to have a second life on it. But for sure, we can see both Blockchain and crypto will be the solid foundation of the metaverse that maintains the stability of it.