Introduction
The connection between the financial industry, virtual spaces, and the real world is becoming increasingly tight. With just a touch on our everyday devices, we can access nearly all the content or services we wish to experience. The cryptocurrency ecosystem is no exception. Non-fungible tokens (NFTs), blockchain games, and crypto payments are no longer exclusive to crypto enthusiasts. As part of the evolving metaverse, these technologies are now accessible to everyone.
What is the Metaverse?
The metaverse is a concept of a 3D virtual space online where all aspects of users' lives are interconnected. It bridges multiple platforms, similar to navigating different websites through a browser.
This concept originated from Neal Stephenson's science fiction novel "Snow Crash." While it was once a fictional imagination, the idea of the metaverse is increasingly likely to become a reality in the future.
The metaverse is based on augmented reality, where each user can control a character or virtual avatar. For example, you can wear Oculus VR headsets to participate in mixed-reality meetings in a virtual office. After work, you can unwind by playing blockchain-based games and manage your cryptocurrency investments and financial status comprehensively within the metaverse.
Existing virtual gaming worlds already exhibit some characteristics of the metaverse. Games like "Second Life" and "Fortnite," or work-social tools like Gather.town, integrate various elements of real life into the online space. While these applications do not constitute a complete metaverse, they share some similarities. The full realization of the metaverse has not yet been achieved.
Beyond gaming and social media, the metaverse will also encompass other applications, including economics, digital identity, and decentralized governance. Even today, users' ability to create and own high-value items and currencies supports the development of an independent and unified metaverse. With the combination of all these functionalities, blockchain has the potential to lay the groundwork for future technologies.
Why are Video Games Related to the Metaverse?
The relationship between video games and the metaverse is evident in their emphasis on 3D virtual reality, which offers the closest experience to the metaverse. This connection arises not only from the use of 3D effects in video games but also from the services and features they provide, which permeate other aspects of life. For instance, virtual concerts and gatherings hosted within the game "Roblox" have transformed the gaming experience into activities in the "online space," becoming part of real life. In the multiplayer game "Fortnite," even 12.3 million players participated in Travis Scott's virtual concert.
How Does Cryptocurrency Fit into the Metaverse?
The parallels between gaming and the metaverse in terms of 3D are clear, but this does not encompass all the elements required for the metaverse. Cryptocurrency can provide additional crucial components, such as digital proof of ownership, value transfer, governance, and interoperability. But what do these specifics mean?
If we wish to work, socialize, and even purchase virtual items within the metaverse, we naturally need a secure way to prove ownership. At the same time, we want these items and funds to be safely transferable within the metaverse. Finally, if the metaverse is to play a significant role in our lives, we certainly want to participate in its decision-making processes.
The Integration of Video Games and Blockchain
Some video games have started to adopt foundational blockchain solutions, while many developers prefer to leverage cryptocurrency and blockchain technology. This is because blockchain offers a transparent and decentralized processing method, whereas traditional game development tends to be more centralized. Blockchain developers are also influenced by the gaming industry, with "gamification" becoming a common concept in decentralized finance (DeFi) and GameFi. It seems that these two fields will increasingly intersect and blend in the future. Key points where blockchain aligns with the metaverse include:
Digital Proof of Ownership
By using a wallet with private keys, users can easily prove their ownership of assets or activities on the blockchain. For instance, at work, you can showcase transaction records on the blockchain to ensure traceability. Wallets are one of the safest and most reliable ways to establish digital identity and proof of ownership.
Digital Collectibles
We can prove the originality and uniqueness of items, just as we confirm the ownership of a physical object. This is crucial for integrating real-world activities into the metaverse. With NFTs, we can create unique items that cannot be fully replicated or forged, and the blockchain can also represent ownership of physical items.
Value Transfer
The metaverse requires a secure method for transferring value that users can trust. Compared to in-game currencies, cryptocurrencies on the blockchain are more secure. If users invest significant time in the metaverse, or even earn income, they will need a reliable currency.
Governance
User control over the interaction rules in the metaverse is also essential. In real life, we have voting rights in companies to elect leaders and government officials. The metaverse needs to find equitable governance methods, and blockchain has already provided mature solutions in this regard.
Accessibility
Anyone can create a wallet on a public blockchain without incurring fees or providing personal information, making it a convenient way to manage finances and online digital identities.
Interoperability
Blockchain technology is continually improving compatibility between different platforms. Projects like Polkadot (DOT) and Avalanche (AVAX) allow for the creation of custom blockchains that can interact with one another. A unified metaverse requires connections between multiple projects, and blockchain technology has already provided solutions for this.
What Does Work in the Metaverse Look Like?
As mentioned earlier, the metaverse centralizes various aspects of life into a single space. While many people are already working from home, in the metaverse, you can enter a 3D office and interact with your colleagues' "virtual avatars." Your work may also be related to the metaverse, earning income that can be directly utilized within it. In fact, this form of work is already quietly emerging.
Today, GameFi and "play-to-earn" models provide stable income sources for players worldwide. These online jobs offer an ideal option for future metaverse solutions, indicating that people are willing to invest time in the virtual world, enjoy life, and earn income. Games like "Axie Infinity" and "Gods Unchained," while lacking a 3D world or virtual avatars, embody principles that allow them to become part of the metaverse, creating ways to earn money in the online realm.
What Does the Future Hold for the Metaverse?
In the quest to create a unified metaverse, Facebook's voice is the most prominent. The Diem stablecoin project launched by Facebook is significant for a cryptocurrency-driven metaverse. Mark Zuckerberg has explicitly stated his desire to support remote work through metaverse projects and improve financial conditions in developing countries. With its social media, communication channels, and cryptocurrency platform, Facebook has laid the groundwork for multi-domain integration. Major tech companies like Microsoft, Apple, and Google are also actively positioning themselves in the metaverse.
In a cryptocurrency-empowered metaverse, the deep integration of NFT markets with 3D virtual worlds seems to be the next step. NFT holders can already sell multi-sourced goods on marketplaces like OpenSea and BakerySwap, but there is currently no widely adopted 3D platform. Blockchain developers may create popular applications similar to the metaverse that could naturally attract more users than large tech companies.
Conclusion
While the path to an independent and unified metaverse is long, we are already witnessing the development trends that drive its emergence. This seems to represent another science fiction use case for the combination of blockchain technology and cryptocurrency. Whether the metaverse can truly be realized remains an unknown. However, we can currently experience projects resembling the metaverse and continue to integrate blockchain into our daily lives.
Risk Warning
While the cryptocurrency market offers significant growth potential and innovation opportunities, it also carries a high level of market risk and price volatility. The value of crypto assets can fluctuate dramatically in a short period, potentially leading to substantial financial losses for investors. Additionally, the cryptocurrency market faces multiple risk factors, including technical risks, legal and regulatory uncertainties, cybersecurity threats, and market manipulation. We strongly advise users to conduct thorough research and due diligence before making any investment decisions and to consult professional financial advisors. All investment decisions are made at the user’s own risk. Thank you for your trust and support of Venkate!
Building The Future of Crypto Exchange
Where Meet a Confluence of Inspiration and Innovation
Venkate Exchange is an innovative cryptocurrency trading platform, drawing its name and inspiration from Venkateswara—a deity symbolizing wealth and prosperity in Indian mythology.
