With the development of blockchain technology, many concepts that previously existed only in theory are starting to become reality. One of them is the virtual world we call the metaverse. In the early 90s this idea was still just a fantasy but with the advent of blockchain technology it has shown its powerful role in very specific projects and has attracted millions of people all over the world. around the world. Cryptocurrencies and NFTs have helped us build a full economy inside the metaverse, with some even making a lot of money trading virtual real estate and digital artwork. Not surprisingly, many experts are expressing great interest in this niche and emphasizing that blockchain and metaverse can revolutionize the digital space and the Internet as we know it. In this Tech Town article, let’s learn about the role of blockchain in the metaverse.

How is Metaverse related to blockchain?

In the modern context, the term “metaverse” refers to a virtual space created in the internet using 3D technology. This concept is directly related to technologies such as blockchain, augmented reality (AR) and mixed reality (MR), NFT, and many other progressive technologies in recent years. In the metaverse, users are immersed in a virtual space where they can do things like in real life, such as visit interesting places, meet people, buy art or sell real estate. Experts agree that creating a blockchain-based metaverse can open up a wonderful virtual world that will change the way people interact. 

So what does blockchain have to do with the concept of metaverse? Today, many blockchain-based platforms use so-called non-fungible tokens and cryptocurrencies, providing an ecosystem for creating, owning and monetizing decentralized digital assets. Without blockchain, the concept of metaverse would be incomplete because of the many shortcomings of centralized data storage. The fact that blockchain can work globally, is a digital source operating on the principle of decentralization, distinguishes the metaverse from the traditional forms of websites and applications of the internet. Best of all, the blockchain-based metaverse can provide access to any digital space without the intervention of a centralized organization.

Why blockchain is important technology for metaverse

Although there is still no standard concept of the metaverse, and the idea itself has only been partially implemented in projects such as the Facebook Horizon and Google Blocks metaverse, the main operating principles of the ecosystem are already in place. developed. 

Any metaverse has two main components: Hardware and software. The hardware includes all kinds of controllers, allowing users to comfortably interact with virtual or augmented reality. As for software, it is the content that is available in the digital environment. 

Many in the industry have agreed that the software should be based on blockchain technology, which represents a secure decentralized database where independent nodes can interact in a single automatically updated network. . It is clear that blockchain technology can fulfill the requirements of the metaverse such as:

•     Security: The fact that data storage in the metaverse is measured in exabytes poses the problem of secure storage, transmission, and synchronization. In this sense, blockchain technology is well suited for decentralizing the storage and processing of data nodes.
•     Trustworthy: Blockchain implies the presence of tokens – secure storage devices capable of transmitting virtual content, data and authorization keys in encrypted form. In this respect, the application of blockchain in the metaverse increases the trust of users in the ecosystem as confidential information will not be exploited by third parties.
•     Decentralization: To ensure the metaverse works fully, all participants must see the same virtual world. A decentralized ecosystem based on blockchain technology that allows thousands of independent nodes to be synchronized.
•     Smart Contracts: Make it possible for the metaverse to effectively regulate the economic, legal, social and other relationships among the participants of this ecosystem. In addition, smart contracts allow users to develop and implement basic rules for operations in the metaverse.
•     Interoperability: Blockchain facilitates unrestricted interoperability and joint operation of different systems and interfaces. This is especially relevant when it comes to NFT valuation and revenue.
•     Money relations: Cryptocurrencies are an integral part of the blockchain, which can function as a traditional currency as usual. Cryptocurrencies that work through the metaverse are an effective way to make mutual agreements.

It is clear that centralized ecosystems present a lot of risk in terms of the creation and operation of virtual worlds. It could be hacking, malware, and even centralized decision-making related to the operation of the metaverse. However, blockchain technology will mitigate these risks and help us build a stable virtual ecosystem.

Blockchain use cases in the metaverse

In developing and operating the metaverse, blockchain can be applied in many different ways. Below are common examples of how this technology is used.

Content in the game

Many blockchain experts say that gaming will soon become an area where the concept of the metaverse is really developed. They predict that the virtual assets that players use will be presented in the form of non-fungible metaverse tokens and that during play the game will allow players to earn real money, which can be spent as a means of payment in a particular ecosystem.

For players, the introduction of blockchain technology into the game means that even if they leave the game, delete the game or fall victim to some adverse situation, their assets will remain safe.

Huge amounts of capital are being invested in this sector, along with cutting-edge technology developers busy exploring this niche. The best example of a groundbreaking development is the game The Sandbox which takes the form of a virtual world with a built-in cryptocurrency based on Ethereum. Interestingly, some of the most popular brands in the real world are already present in the Sandbox metaverse ecosystem.

One of the most popular metaverse NFT games right now is Axie Infinity, which has over a million active participants. The special feature of this game is that players are rewarded with a local currency that promotes new players to join.

Most of the big boys, including Facebook (now Meta) founder Mark Zuckerberg, believe that the metaverse will be actively used by investors, developers, and users in the coming years. We can easily predict the impending explosion of this concept.

Virtual money

Payments are one of the most obvious use cases of blockchain technology in the metaverse. The days when customers shop in virtual stores are not far away. As consumption is steadily increasing and offline transactions are increasingly giving way to online stores, it can be said with certainty that cryptocurrency will soon find its application in a decentralized ecosystem. .

One of the reverse examples of the use of virtual currency in the metaverse is the MANA used to purchase virtual assets in the game Decentraland. Millions of dollars in transactions have been made in this metaverse, and this is just the beginning. In the future, users will be able to buy virtual versions of things in the real world. This technology will not be limited to games, the dynamic development niche of DeFi could also become a testbed for lending, borrowing, investing and virtual trading in the metaverse. Therefore, the scope of cryptocurrencies is theoretically unlimited.

NFTs

According to many experts, NFTs will play an important role in the metaverse. Acting as proof of ownership of digital assets, these tokens will participate in digital art trading where they are being used frequently. Furthermore, NFT has a huge potential to be integrated into any metaverse crypto project involving the purchase of game assets, avatars, etc. Also, if these metaverse regions continue to grow development, NFTs will soon be used as proof of real estate ownership.

In a broad sense, an NFT is a key to access specific areas of the metaverse (in other words, control over a certain part of the virtual environment). Besides, NFT metaverse games will eventually use tokens as rewards. Meanwhile, NFTs will be used to assign values to specific digital assets. This is important, as almost any digital asset can be cloned an unlimited number of times, and only a certificate of title incorporated into a digital object can claim. of the rightful owner.

Verify your identity

In the metaverse, verifying someone’s identity is done in a similar way to assigning a social security number. All data about a particular user such as age, activity, appearance and other characteristics are stored in the blockchain. This ensures maximum transparency and prevents illegal activities in the metaverse.

In addition, automatic identity authentication eliminates the possibility that someone will perform illegal actions under a fake name in the virtual ecosystem.

Real Estate

Real estate is one of the main digital assets in the metaverse. The main concern here is how to evaluate a virtual real estate object and how to regulate this market if the metaverse is indeed an infinite digital space. This is where the metaverse blockchain can be used as a kind of register that records all actions performed with virtual real estate, such as creation, alteration, disposal, purchase or sale.

In summary, it is clear that although the metaverse and blockchain have been developed as independent concepts, the potential of the two will only be realized when they are integrated. They have complementary functions that work together: Help change people’s perception of virtual reality and super-cryptocurrency.

Surely a blockchain is required to build the metaverse?

Right! Blockchain is an integral part of the metaverse, as the technology allows users to protect their digital assets in virtual reality. This is emphasized by current blockchain projects like Axie Infinity and The Sandbox, both of which are related to the metaverse. Users can create and sell digital assets in the form of NFTs, as well as benefit from the domestic economy using the metaverse cryptocurrency.

Experts all agree that it is impossible to realize the idea of a complete virtual ecosystem without the participation of blockchain technology. This is because users need to be able to securely own and sell their digital assets without a centralized regulatory authority. For example, Virtual Real Estate in The Sandbox can be sold outside of the metaverse (on the respective exchanges). Experts say that the inability to move digital assets outside of a particular ecosystem would significantly reduce their value.

That is why today, blockchain is an indispensable technology that allows anyone to accurately identify any virtual object without the need for a centralized organization. The ability of users in the ecosystem to identify a digital asset and track its ownership according to decentralized logic is key to building a fully developed metaverse.

Metaverse would not be able to exist without the domestic economy. This explains why the integration of cryptocurrencies into the metaverse is inevitable. Blockchain ensures the transparency and economic efficiency of this metaverse market. When creating virtual reality, it is extremely important to use reliable algorithms to replace real assets with digital assets. In this respect, the metaverse blockchain is almost the only technical solution currently able to provide an adequate level of trust in economic transactions within the metaverse.

In addition, blockchain allows different ecosystems to be combined – which further emphasizes how integral this technology is when it comes to introducing the concept of the metaverse.

Hopefully the information Tech Town brings above will be useful for businesses. If you are looking for a reputable metaverse development company, a team of highly qualified engineers with reasonable costs, Tech Town is confident to become your right choice.

Tech Town is a technology company from Vietnam, with representative offices in the United States, Japan, Canada, the Netherlands,… As a reputable metaverse application developer, specializing in implementing development projects customized virtual universe platform with the application of the most modern technology techniques such as Blockchain, AR / VR, AI, Machine Learning, etc. For more than 4 years of operation, Tech Town has become a prestigious technology partner. trusted by startups and enterprises from many countries around the world such as the US, Canada, the Netherlands, Japan, the UK and other developed countries.

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