Okay, so imagine it’s a warm morning and you have a big overwater bungalow in Bora Bora which was brought after selling the last Jersey Bolt won the Olympics by auctioning it in an NFT concert. Now you have the heart to listen to a BTS concert, but all the tickets are sold out so you buy yourself a second-hand ticket by selling your Bored Apes NFT. Well, you got your children calling you so you log off from the internet, leaving this beautiful meta world behind.
So, what is this with metaverse and cryptocurrency everyone is talking about? Let us understand.
In the real world, fiat currency acts as a store of value and a means of exchange, allowing you to buy and sell whatever you want. Cryptocurrency serves the same purpose in the metaverse.
The purpose of the metaverse is to provide individuals with an augmented reality experience that may, in many respects, transcend physical reality in terms of experiences and opportunities. Much has already been written about the metaverse, and with Facebook (now Meta) substantially involved, more and more tech giants and companies, such as Epic Games, Microsoft, Niantic, and other digital heavyweights, are jumping into the metaverse.
With this advancement in the metaverse, it has now become more than important that we need understand the role of Cryptocurrency in the metaverse.
Role of Cryptocurrency in Metaworld
In every virtual economy, money is essential. Cryptocurrencies work similarly to virtual currency in virtual worlds. Transactions are very instantaneous, and the blockchain technology that supports them is designed to enhance trust and security. In current metaverses, cryptocurrency is already employed as a payment option.
Non-fungible tokens are another characteristic of blockchain and cryptocurrency that is crucial to metaverses (NFTs). NFTs may be anything from artwork to sports trading cards to in-game objects. They are one-of-a-kind digital artifacts that contain ownership and other information.
The concept of ownership is what makes NFTs so crucial in virtual environments. People can buy and own land in the metaverse with NFTs. NFT avatars may be purchased and created for use in virtual worlds. They can also make and sell avatar-related things, such as the digital clothing we described previously.
Crypto is what will make you rise and fall in the Metaverse.
So how important cryptocurrency will be in Metaverse?
The metaverse is a three-dimensional, virtually linked environment made up of shared places where people may interact with one another and data in the future. It is expected to be the next development of the internet in a new augmented reality method, allowing users to socialize, have business meetings, play games, shop online, and more.
People will most likely be trading in tokens which is digital asset linked to a blockchain and non-fungible tokens (NFTs) in gaming spaces and markets in these virtual environments. So you see cryptocurrency runs the world, the world is entering into, the Meta world.
Let’s take a look at why Cryptocurrency and why so important
The blockchain is unchangeable
To this point, blockchain and blockchain systems have shown to be not hackable and irreversible, which is crucial if any virtual reality platform is to gain widespread use. In particular, if a person or group of individuals will be interacting with others in a virtual environment, there must be some guarantee that the transactions will be safe.
Blockchain not only enables quick information confirmation, but it also enables cryptographically safe and secured transactions. To put it another way, blockchain and crypto assets are fundamental aspects of how virtual reality will be deployed. You can have a portfolio in multiple cryptocurrencies and can even trade them for profit at services like bitql app.
Transactions are completed instantly
Continuing on from the previous point, the metaverse will expand and expect transactions to be completed on demand of the users and players, which this blockchain and crypto assets may help to facilitate. For a proper virtual reality environment to operate and behave as claimed, transactions will be required. These transfers must be safe and almost instantaneous. Crypto transactions, which are a practical and established technique, allow individuals and organizations to conduct transactions in a virtual, traceable, and real-time manner.
Cryptocurrency payments are currently available more than ever
The trend toward virtual and online payments has been rising even without the usage of blockchain and crypto-asset technology.
Despite the price instability associated with bitcoin and other decentralized cryptocurrencies, the development of stable coins and central bank digital currencies (CBDCs) has made it simpler than ever to execute transactions using crypto. So anyone who wants to conduct transactions using crypto – or a crypto-based platform like the metaverse – will have a lot of choices.
All of these possibilities are the cause for the recent surge of interest in Metaverse. Although the concept is not new, we now have the tools and technology to connect individuals all over the world and create a massive interconnected virtual environment.