Ever since Facebook has renamed its company to Meta, the concept Metaverse has been capturing a lot of public attention. In this virtual world, people can connect, learn, collaborate, and play in ways that are beyond their wildest dreams. Beside AR and VR technology, Blockchain also plays a crucial role in the Metaverse. It allows you to use cryptocurrencies and NFTs to create a fully functional virtual economy where you can buy and sell any virtual asset. Many experts are enthusiastic about this domain and believe that blockchain and metaverses have the potential to transform the digital world and the Internet. So, if you're a business or just a tech lover who wants to learn more about the topic “Blockchain in Metaverse”, just keep reading!
Related: Catch Up With The Growing Trend: Metaverse
Don’t Miss Out On Top 5 Metaverse Use Cases
1. How Are Blockchain and Metaverse Related?
The term “Metaverse” refers to a virtual space created within the new Internet using 3D technologies. Metaverse can also be considered as a second life where the users can do everything they do in real life, such as visit exciting locations, meet people, buy works of art, or sell real estate.
So, what is the relationship between Blockchain and this concept? As you may be aware, Blockchain's non-fungible tokens and cryptocurrencies will create an ecosystem for the creation, ownership, and monetization of decentralized digital assets. Furthermore, due to the numerous limitations of centralized data storage, a Metaverse world without Blockchain will be incomplete. The potential of blockchain to operate as a global digital source based on the principle of decentralization distinguishes the metaverse from the traditional internet's capabilities, which take the form of websites and applications. The blockchain-based metaverse offers access to any digital location without the involvement of a centralized entity.
2. Why Is Blockchain In Metaverse Necessary?
It can’t be denied that Blockchain is an indispensable technology in the Metaverse world due to many benefits it offers:
- Security: Thanks to Blockchain, the fear of hackers misusing personal data to defraud others is no longer a concern. By using private and public keys, users can have direct control over their data. Besides, blockchain features tokens, which are secure storage devices capable of transmitting encrypted virtual information, personal data, and authorization keys. Therefore, any third-party without permission can’t access personal data. To sum up, the use of zero-knowledge proof on the blockchain gives people easy access to identifying important data in the metaverse while retaining their privacy and controlling over their belongings.
- Decentralization: To guarantee that the metaverse functions properly, all participants must see the same virtual world. Thousands of separate nodes can synchronize in a decentralized ecosystem based on blockchain technology.
- Smart Contracts: Users in the Metaverse can employ Blockchain Smart Contracts to effectively control economic, legal, social,... Furthermore, when specific conditions are met, Smart Contracts can process without the need for an intermediary, allowing you to easily and swiftly build and apply the metaverse's core rules.
- Money Relations: Because cryptocurrency is an intrinsic part of the blockchain, it can serve as a functional analog of traditional money, and it can be used to perform mutual settlements in the metaverse.
3. Use Cases Of Blockchain In Metaverse
a. Virtual Currency
The future where customers shop in virtual stores is not far away, and to make it possible, virtual currencies in transactions are quite necessary. Cryptocurrency will soon find its place in a decentralized environment, given that consumption is continually expanding and offline trading is rapidly giving way to online businesses. One of the metaverse examples of the use of virtual currencies in the metaverse is MANA. This token is used to buy virtual property in the game “Decentraland”. Besides, not just in Metaverse Games, virtual currencies can also be utilized in DeFi for virtual lending, borrowing, investing, and trading within the metaverse.
Another use case in Metaverse is non-fungible tokens, which are Blockchain-based applications. These NFTs can be used in Metaverse crypto projects for buying game assets, avatars, verifying Metaverse user ownership, and serving as a reward for Metaverse games. An NFT is, in a broad way, a key to certain sections of the metaverse (in other words, the right to control a certain part of the virtual environment). To summarize, NFTs have enormous potential to advance in the Metaverse.
c. Real Estate
In such a virtual environment, real estate is one of the most valuable digital assets. However, assessing and regulating these digital attributes becomes difficult for the Metaverse. Fortunately, Blockchain may be a viable answer. All actions conducted with virtual real estate assets, such as creation, change, acquisition, sale, or disposal, can be recorded on the blockchain in Metaverse.
d. Self-identity Authentication
With the growing number of Metaverse users, data management is critical to avoid fake data, identity data manipulation, and illegal activities. Fortunately, Blockchain technology can help us reach this goal. All information, including age, activities, look, and other attributes, is saved in the distributed ledger. Furthermore, blockchain ensures that no one can alter or falsify data because all actions are recorded and visible to all parties. As a result, it assures maximum transparency and protects the metaverse from illegal activities.
e. In-game Assets
Metaverse games are expected to grow in popularity in the future, and blockchain can assist in presenting in-game assets as non-fungible tokens. This will enable individuals to earn real-world money and transact in a particular economy. For players, the incorporation of blockchain in Metaverse games means that their assets will be safe even if they exit the game, delete it, or suffer a life-changing incident. The Sandbox - a virtual environment with an integrated Ethereum-based coin - is an example of a game like that.
4. Final Thoughts: Get Started With Blockchain Development In Metaverse
To sum up, the importance of Blockchain in Metaverse cannot be overstated, as it allows individuals and organizations to preserve and safeguard their digital assets in virtual settings. The blockchain metaverse projects like "The Sandbox" and "Axie Infinity" support this factor. Users can use the metaverse economy to make and sell digital things in the form of NFTs.
Are you in urgent need of a Top Blockchain Development Company to leverage this technology into an immersive virtual space? Contact our experts right now. Our Blockchain developers have extensive expertise in delivering a wide range of blockchain solutions, including NFTs, cryptocurrencies, blockchain-based games, and more, so we can provide you with in-depth expert advice on the market's investment potential. Based on our hundreds of successful blockchain projects, SotaTek guarantees that your vision will be transformed into reality, along with cost-effective development choices.