The metaverse is a concept that describes a collective virtual shared space, created by the convergence of physical and virtual reality. What Is the Metaverse?
Metaverse digital universe that incorporates aspects of augmented reality (AR), virtual reality (VR), the internet, and other technologies to form a persistent, immersive environment. The term “metaverse” is derived from “meta-” meaning beyond or transcending and “universe,” reflecting the idea of a vast, interconnected, and shared space.
The metaverse, a vision of a persistent, interconnected 3D online universe, represents a futuristic evolution of the internet. Imagine a digital realm where users can collaborate on work, socialize, engage in gaming, and attend virtual events together.
While the metaverse is not yet fully realized, certain platforms exhibit metaverse-like features. Video games, in particular, offer a glimpse into the metaverse experience, pushing the boundaries of traditional gaming by hosting in-game events and establishing virtual economies.
Cryptocurrencies, while not mandatory, seamlessly integrate with the metaverse concept. They enable the creation of a digital economy featuring utility tokens and virtual collectibles known as NFTs (Non-Fungible Tokens). Incorporating crypto wallets like Trust Wallet and MetaMask, along with blockchain technology, ensures transparent and reliable governance systems within the metaverse.
Already, there are blockchain applications with metaverse characteristics that provide users with viable income opportunities. Axie Infinity, a play-to-earn game, stands out as a platform where users can support their income. Other examples like SecondLive and Decentraland successfully bridge the gap between blockchain technology and virtual reality applications.
Looking ahead, major tech corporations are striving to lead the metaverse revolution. However, the decentralized nature of the blockchain industry allows smaller players to actively contribute to the development of the metaverse. The metaverse is poised to redefine how we engage with digital spaces, bringing together aspects of virtual reality, blockchain, and online connectivity.
In envisioning a future where work, social interactions, and even virtual transactions occur within the metaverse, the need for a secure system of ownership, safe transactions, and user participation in decision-making becomes paramount. While some video games offer rudimentary solutions, many developers are turning to crypto and blockchain as more robust alternatives, given the decentralized and transparent nature of blockchain compared to the more centralized approach of video-game development.
Blockchain developers draw inspiration from the gaming world, evident in the widespread use of gamification in Decentralized Finance (DeFi) and GameFi. The growing integration of these two realms suggests a future where they become even more interconnected.
- Digital Proof of Ownership: Ownership of a wallet with private key access enables instant proof of ownership for activities or assets on the blockchain. This provides a secure and robust method for establishing digital identity and ownership, allowing users to showcase transaction histories for accountability.
- Digital Collectibility: The ability to establish the originality and uniqueness of an item is crucial for a metaverse incorporating real-life activities. Non-Fungible Tokens (NFTs) facilitate the creation of 100% unique objects that cannot be precisely copied or forged. Blockchain can also represent ownership of physical items.
- Transfer of Value: A secure and trustworthy method for transferring value is essential in a metaverse where users spend significant time and even earn money. Cryptocurrencies on a blockchain provide a more secure alternative than in-game currencies in multiplayer games.
- Governance: Users should have the ability to influence the rules governing their interaction with the metaverse. Blockchain offers a proven solution for implementing fair governance, allowing users to participate in decision-making processes similar to real-life voting rights in companies and elections.
- Accessibility: Creating a wallet on public blockchains is open to anyone globally without requiring payment or detailed personal information. This accessibility makes it one of the most user-friendly ways to manage finances and establish an online digital identity.
- Interoperability: Blockchain technology continually enhances compatibility between different platforms. Projects like Polkadot (DOT) and Avalanche (AVAX) enable the creation of custom blockchains that can seamlessly interact with one another. Given that a single metaverse may need to connect multiple projects, blockchain technology provides existing solutions for interoperability.
Metaverse examples
While a unified and interconnected metaverse is still on the horizon, numerous platforms and projects with metaverse-like features are already in existence. These platforms commonly integrate Non-Fungible Tokens (NFTs) and other blockchain components. Let’s explore three instances:
SecondLive
SecondLive stands out as an all-encompassing web3 metaverse marketing solution, offering a wide array of features designed to elevate the user experience. Among its offerings are advanced Intelligent AI Agents, AI Spaces capabilities, venue AMA features, and virtual dance V-Dance capabilities. These innovations aim to deliver precise and captivating marketing solutions, fostering connections between users and brands or creators in a manner that encourages spontaneous self-expression and action.
Leveraging state-of-the-art XR (Extended Reality) and spatial computing technology, SecondLive crafts digital avatars and spaces that are commercial-ready. The project distinguishes itself by seamlessly integrating AI and AR capabilities, facilitating intricate connections between brands and creators in the metaverse.
Axie Infinity
Axie Infinity is a blockchain-based play-to-earn game that has gained popularity for providing users with an opportunity to earn cryptocurrency through gameplay. Developed by Sky Mavis, Axie Infinity is built on the Ethereum blockchain and features cute creatures called Axies. Players acquire, breed, and battle these Axies, and the in-game rewards, such as Smooth Love Potion (SLP) tokens, can be traded for real-world value.
The game operates on the play-to-earn model, allowing users, particularly in developing countries, to earn a living by participating in the Axie Infinity ecosystem. Players can generate income by owning and strategically playing their Axies, engaging in battles, and earning rewards that have a real-world market value. Axie Infinity has garnered attention for its innovative approach to merging blockchain technology, gaming, and decentralized finance (DeFi).
Decentraland
Decentraland is a virtual reality platform and blockchain-based metaverse that allows users to create, explore, and interact with a digital world. It is built on the Ethereum blockchain, leveraging blockchain technology to enable true ownership of virtual assets and properties. In Decentraland, users can buy, sell, and develop parcels of virtual land using the native cryptocurrency called MANA.
- Users can purchase parcels of virtual land within Decentraland’s metaverse. These parcels are represented as non-fungible tokens (NFTs) on the Ethereum blockchain, providing verifiable ownership.
- Participants can create and monetize their own content, including virtual experiences, games, and applications. This user-generated content contributes to the overall richness of the Decentraland environment.
- Decentraland allows users to socialize and interact with each other in a shared virtual space. This includes attending events, exploring virtual environments, and engaging in various activities.
- The platform uses MANA, a cryptocurrency that facilitates transactions within Decentraland. Users can earn, spend, and trade MANA for virtual goods and services.
- Decentraland operates with a decentralized autonomous organization (DAO) model, allowing users to have a say in the development and governance of the platform. MANA holders can vote on proposals to shape the future of Decentraland.
Decentraland is part of the broader trend of blockchain-based virtual worlds and metaverses, offering a decentralized and user-driven alternative to traditional virtual environments.
Future of the Metaverse
With ownership of major platforms spanning social media, communication, and cryptocurrency, Facebook is positioned advantageously to integrate these realms into a cohesive metaverse. Notably, other tech giants like Microsoft, Apple, and Google are also keen on creating their versions of the metaverse.
In the realm of a cryptocurrency-powered metaverse, the next evolutionary step appears to involve deeper integration between NFT (Non-Fungible Token) marketplaces and 3D virtual universes. While NFT holders currently have the capability to trade their assets across various platforms like OpenSea and BakerySwap, a prominent 3D platform for such transactions is yet to emerge. Looking ahead, blockchain developers may play a pivotal role in crafting popular metaverse-like applications that attract a more organic user base compared to the metaverse initiatives of larger tech corporations.
Companies, particularly in the tech and gaming industries, are investing heavily in the development of the metaverse. Some envision it as the next evolution of the internet, offering new possibilities for communication, collaboration, commerce, and entertainment. However, challenges such as privacy concerns, security issues, and standardization still need to be addressed as the concept continues to evolve.