Monday, 4th December 2023

How do Crypto and metaverse share a common goal?

By Guardian Nigeria
15 January 2023   |   1:51 am
It appears that the metaverse and cryptocurrencies are two different aspects of the same idea: namely, the creation of virtual worlds and the use of virtual currencies

In this photo illustration, visual representations of digital cryptocurrencies, Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Dogecoin (DOGE) are arranged. Photo: AFP

It appears that the metaverse and cryptocurrencies are two different aspects of the same idea: namely, the creation of virtual worlds and the use of virtual currencies to do business inside those worlds.

Both are crucial components of the new model of the internet, dubbed “web3,” which follows web1 (the original internet) and web2 (social media). Using virtual reality and augmented reality to create convincing 3D environments is central to this redesigned network’s mission to wow users with its responsiveness and originality.

As we’ve seen with Bitcoin, a cryptocurrency having real-world as well as virtual-world applications, the metaverse, and cryptocurrencies are distinct and need not be intertwined.

Shopping soon became an integral part of both Web 1 and Web 2, and it seems unlikely that this trend will change in Web 3. Although the ultimate shape of the metaverse is unknown, it is becoming more clear that it will likely have a major bearing on the future of cryptocurrencies and the social effect they will have.

Crypto And Metaverse Connection

The goal of the metaverse is to make it easy to acquire or create objects in one realm and then use them in the other realm. To perform what you would like to do in a realm where virtual reality makes it possible, you need money, and that money may be obtained via cryptocurrencies.

A Blockchain for the Metaverse

The blockchain is the backbone of the cryptocurrency and metaverse. While the internet as we know it is a dispersed system, users of the metaverse collectively own and control the network. Bitcoin fast profit and other cryptocurrency networks employ the same decentralized mechanism.

Blockchain technology is slightly more mature than the metaverse, which is still in its early stages. The blockchain is a specialized kind of distributed database that relies on a system of interconnected computers. Upon confirmation, data is uploaded to the blockchain, permanently recording all previous dealings and data. In the crypto world, blockchain technology is a cornerstone, but it is finding new applications outside of crypto, such as in the metaverse.

NFT Metaverse

NFTs are not able to be traded against other assets that are of the exact same type. They are a digital asset that supports the expansion of the metaverse. They stand in for nonmaterial things like gaming goods, digital media, and other forms of virtual property. The blockchain keeps track of who has NFTs and allows them to be swapped for other cryptocurrencies.

Thanks to the smart contract functionality included in NFTs, it’s simple to enter into and carry out any kind of agreement, whether it is a purchase, a sale, or the granting of access. This implies that NFTs may be used not just for social invitations, but also to get entry to otherwise restricted events like festivals.

Some people use NFTs for fun, while others see them as investments on par with bitcoin.

Pathways Towards Adoption
As bitcoin gains popularity as a means of payment in the metaverse, its users will get more used to the nuances of purchasing, selling, and keeping it. For this reason, it will be used increasingly often outside of the metaverse, too, such as when transferring money to friends and relatives, especially if doing so requires the money to cross national boundaries, where the costs of using fiat currency might be prohibitive.

As a result, traditional financial institutions like banks will likely increase their support for cryptocurrency and blockchain-based financial models. Because of the rise of borderless, middleman-free financial systems, businesses everywhere are finding it necessary to simplify their operations to stay competitive. More than 1,100 decentralized nodes exist in the Ethereum network alone; and material on the metaverse blockchain is transferable, meaning that it can be readily transferred to any other platform.

In the blockchain-based “metaverse,” users may design and control their digital personas and the digital goods they generate. You have complete freedom of access, use, and import/export of any items without hindrance from other parties. You get to decide how you want to spend your time, and you may use whatever tools you choose (including but not limited to virtual, augmented, mixed, and extended realities) to have the most satisfying and convenient interactions imaginable, regardless of where you happen to be.

Cryptocurrencies and digital assets are the cherries on top, increasing the global economy and making it easier to realize your wildest goals.

Since interest in metaverses is growing, policymakers should think about what kind of environment they want to foster for the emerging medium.

The federal govt might wish to develop a legislative structure to address issues such as whether or how to regulate business activity in the metaverses, how to uphold public safety, as well as how to safeguard consumers from privacy hazards and cyberbullying.

Metaverses are a fantastic opportunity for underserved groups to have access to and take part in the expanding digital economy. They will provide new jobs for developers and artisans. The government must take measures to guarantee that those working on metaverses have a wide range of experiences and viewpoints to identify biases, inequities, accessibility problems, and other negative effects of these technologies.

The Verdict
Cryptocurrency is a natural fit for the virtual economy since it facilitates instant, decentralized, and transparent value transfers between users. The potential for the development of crypto-based platforms is enormous as they continue to emerge. A big part of the expansion is due to cryptocurrency and NFTs, which will be crucial in allowing the technology to realize its full potential. Cryptocurrency is your passport to success in both the digital and physical worlds, whether your goal is to become completely immersed in the metaverse or to merely enjoy its financial rewards.

In this article