Last Updated on November 8, 2022 by HassanShabeer
Blockchain and non-fungible tokens have been some of the “hottest” technologies in the past two years (NFTs). Over 20% of Britons believe NFTs are a “decent and safe” method to invest, while at least 18% of Americans have made an NFT investment.
NFTs are a special kind of data unit that cannot be traded. Blockchain development technology is used to store them, giving a digital object a real-world value. Meanwhile, blockchain is being used by an increasing number of people.
According to a recent Deloitte study, 76% of respondents believe that in ten years, digital assets like cryptocurrencies might compete favorably with fiat money and potentially replace it.
But up until this point, the majority of conversations around blockchain, non-fungible tokens (NFTs), and cryptocurrency have focused on real-world investments and money transfers. This is altered by Facebook’s (planned) introduction of the metaverse.
The cost of cryptocurrencies like MANA, which are used to transact on the metaverse, increased by roughly 400% after Facebook announced that it will change its name to Meta.
What does this ultimately mean? How does a blockchain development company fit into the overall and worldwide metaverse plans of Facebook? We need to understand what blockchain means in a virtual world like the metaverse before we can respond to these queries.
The Blockchain
Blockchain is a growing collection of entries (referred to as “blocks”) on a digital ledger that are connected via cryptography.
Every block on the blockchain will have transaction data, a timestamp indicating when the block was viewed or altered, and a cryptographic hash or mathematical formula that identifies the block before it on the chain.
Because there is always a record of everything from start to finish, the blockchain cannot be modified, and fraud is virtually unheard of.
Blockchain is secure because it is managed by a peer-to-peer network. As a result, each node on the network has a copy of the blockchain and the processing power required to create a block is distributed throughout a public network.
Although blockchain has various applications, bitcoin is the most crucial one for the metaverse. Other applications include the safe exchange of health data, the management of logistics, the thwarting of money laundering, and the payment of music royalties.
A cash or asset known as cryptocurrency can only be traded online. It is entirely digital. On the blockchain, a decentralised network verifies transactions.
Similar to ordinary money, cryptocurrency, or “crypto,” can be used to make purchases, but as it is not governed by any one organization or collection of organizations, its value can fluctuate greatly. Instead, a network of individuals and institutions governs its worth.
You can purchase cryptocurrencies like those we’ve already discussed, such as Bitcoin, Ethereum, and MANA. Facebook has experimented with the technology as well.
How does Blockchain Technology Relate to the Concept of the Metaverse?
The metaverse is a three-dimensional virtual reality environment where users can engage in immersive interactions with virtual items and other users. The metaverse is vast, continuous, self-sustaining, endless, and interoperable.
It is simple to understand how cryptocurrencies could work under the metaverse concept. Cryptocurrencies have nothing in common with actual fiat currencies, either in terms of value or physical form. As a result, doing business and paying for goods online is simple.
The metaverse is also not centered on any particular location by definition. The metaverse shouldn’t or can’t be ruled by one person or entity. Decentralizing its money would significantly support this viewpoint.
Additionally, in a world that is always changing, cryptocurrencies and blockchain technology in general may be useful anchors.
The metaverse would evolve depending on what developers did and how they altered things over time, affecting our surroundings, natural habitats, people’s appearances, objects, and so on. The stability required would be provided by the fact that blockchain and cryptocurrency cannot be altered.
Use-Cases of Blockchain Technology in the Metaverse
The following use cases encompass all of the various ways that blockchain can be applied in the metaverse development services:
Immutable in Game Assets
NFTs, or non-fungible tokens, would be created from in-game assets, and you could buy and trade them. Then, users could play VR games and earn real money that has worth in the metaverse.
The assets wouldn’t be harmed in any way if the user exited the game, if the game was removed, or if something horrible occurred in the metaverse.
Self-Identity Authentication
Users’ identities may be tracked by blockchain technology as they move about the metaverse and alter over time. It is comparable to a fake social security number.
To increase transparency in the metaverse and deter criminality, the blockchain can be used to store information about age, physical changes over time, internet activity patterns, and other particulars.
Property in the Virtual World
Real estate is as significant in the metaverse as in-game stuff. Because there is an endless quantity of space and users at once, real estate might be challenging to define and govern in the metaverse.
The creation, modification, trading, and destruction of real estate in the metaverse might all be permanently recorded through blockchain.
Creative Compensation
This is perhaps one of the first applications of blockchain in the metaverse. Epic Games sued Apple in August 2017 for levying a 30% tax on all purchases made through its well-known game Fortnite.
The same issues can arise in the metaverse as well. By providing cryptocurrency to producers, the exchange’s regulations would be fair and not made up on the fly.
Is Facebook the only Initiative driving the Metaverse?
The Metaverse is not solely a Facebook initiative, though. The metaverse is also being promoted by Microsoft and semiconductor manufacturer Nvidia. Companies that create video games are also in the lead. The developer of the well-known video game Fortnite, Epic Games, received $1 billion from investors to help fund its long-term aspirations for the metaverse.
Another significant player in the gaming industry is Roblox. In the metaverse, “people can come together in millions of 3D experiences to learn, work, play, create, and socialize,” according to the article.
Consumer product companies are also attempting to capitalize on the trend. An Italian fashion brand named Gucci and Roblox partnered to sell a collection of accessories that could only be utilized on Roblox in June. Both Clinique and Coca-Cola offered digital tokens that were promoted as a method to enter the metaverse.
The Future of the Metaverse!
It’s unclear how real or how long it would take to create a true metaverse that fully replicates the real world. In order for users to eventually interact with the environment, many blockchain-based metaverse development platforms are still working on augmented reality and virtual reality technology.
By 2030, virtual reality and augmented reality, up from $46.5 billion in 2019, will contribute $1.5 trillion to the global economy, according to PwC, a multinational accounting and consulting business.
In order to be prepared for the expansion of these industries, Facebook Inc., Google, which is owned by Alphabet Inc., and Microsoft Corp. have all invested in cloud computing and virtual reality businesses.
Companies that can control particular spheres, such as platforms or services like payments, subscriptions, or advertising, will make a lot of money. It’s comparable to how businesses that controlled “the internet” made a lot of money.
