What Is Metaverse Crypto? Metaverse Crypto Explained
An Immersive Guide to the Metaverse, including what it is and what potential it has for the future of the DeFi space
- The Metaverse is still very much conceptual–it is an idea that represents the intersection of the financial, virtual, and physical worlds.
- It will most likely emerge from the connection of numerous web-based platforms, with a unique digital avatar serving as our eyes and ears in a virtual space.
- Metaverse crypto and smart contract technology will have numerous applications in the Metaverse, serving as the building blocks for key transactions that take place in the space.
What is the Metaverse?
If there were a word to describe the still emerging three-dimensional landscape that represents all the connections between the financial, virtual, and physical worlds, it would be the 'Metaverse.' While still more of an idea than a full-fledged realization, the Metaverse is well on its way to becoming the next frontier of digital development.
The Metaverse originated in Neal Stephenson’s Sci-Fi novel, Snow Crash (1992). The COVID-19 pandemic caused business and consumer interest in the Metaverse to skyrocket because of its ability to enable remote communication and interaction.
The idea of a Metaverse originated from the natural need for human interaction during a time when we increasingly depend on electronic devices. The VR/AR-based virtual world will eventually include data from all digital and smart devices that are connected to the internet and will offer a unique, immersive user experience. A project of this scale has only been imagined in sci-fi literature and movies.
But the Metaverse experience doesn’t stop there. Metaverse currency is quickly gaining real-world value, allowing for the growth of economies within these virtual worlds.
By 2024, global VR/AR technology spending is expected to increase to $72.8 billion, six times higher than in 2020 ($12 billion).
The Metaverse - DeFined
Similar to the popular movie Ready Player One, the Metaverse is a concept of an ever-operating online 3-dimensional virtual space that connects all aspects of a user's life. Far from being a standalone platform, the Metaverse will instead be the intersecting hub for multiple web-based platforms in the same manner that you can connect to any website on the internet through a single browser.
The main driver of interaction in the Metaverse will be augmented and virtual reality, with each user controlling their unique digital avatar–their eyes and ears in the Metaverse. Everything, from work meetings to blockchain gaming and portfolio management, will be handled through user avatars in the Metaverse.
While the idea may seem foreign to those who can still remember a time before the internet, the concept of the Metaverse, and metaverse currency, is already popping up in many aspects of modern society. As it stands now, these applications still have a way to go and are more akin to precursors that point to the future possibilities of the Metaverse.
Moving beyond simple social media or gaming applications, the Metaverse will eventually incorporate numerous aspects of daily life including the economy (i.e. metaverse crypto), digital identity, and decentralized finance and governance, to name a few.
The Role of Cryptocurrencies in the Metaverse
Aside from the visual, 3D aspect of the Metaverse, which will be addressed through the integration of gaming and virtual reality technology, there are more sensitive aspects such as digital identity and proof of ownership that only cryptocurrencies can manage.
Whether it's the need for an easy way to transfer value or an efficient way to conduct a governance vote within a decentralized autonomous organization (DAO), Metaverse currency and smart contract technology will be required to complete these securely and reliably.
In all likelihood, in the future, Metaverse will include aspects of modern gaming combined with blockchain technology that will be influenced by gamification, as we have already seen in decentralized finance (DeFi) and GameFi.
How to Buy Metaverse Crypto
The Metaverse might be the right place to start if you're looking to invest in the burgeoning crypto world. Here's a quick guide on how to buy Metaverse crypto.
The Metaverse is a decentralized platform that allows for creating and managing digital assets. It's similar to Ethereum but with a few key differences. For one, the Metaverse is geared towards enterprise use cases. Metaverse currency also uses a Proof of Work consensus algorithm, making it more resistant to cyberattacks.
If you're looking to buy Metaverse currency, you can do so on major exchanges. The process is relatively simple:
- Create an account on the exchange
- Deposit funds
- Buy Metaverse tokens (ETP) with your deposited currency.
So, What Is Metaverse Crypto?
Crypto Metaverse designers aim to differentiate their work from that of the Metaverse by layering a blockchain infrastructure on top of the idea to create an immutable and secure space where digital assets can be stored and exchanged.
This economy is already growing–a Grayscale report shows that people have already spent over $200 million on metaverse items. And metaverse crypto is the currency that enables its microeconomy to operate.
Let's take a look at some key features of metaverses and metaverse currency:
Although the Metaverse will eventually be decentralized, it is still in the early stages of development, and many earlier virtual worlds are owned by companies. In contrast, crypto metaverses are being built from the ground up as decentralized platforms with no central control points.
Since they will be built on blockchain technology, crypto metaverses will diverge from traditional business models. What this means for users is a more equitable virtual world in which they have a say in the governance of the space and can own their own digital assets (e.g. metaverse tokens, NFTs, metaverse crypto, etc.).
For each crypto metaverse, it also means that the space will prevail, even if its creators disappear. In crypto metaverses, the users carry on the legacy.
As we increasingly rely on the internet for our daily activities, it's becoming more and more essential to have a secure way to store our digital identity. In a traditional centralized platform, our data is stored in silos across many different companies, data stores, and devices. This poses a huge security risk as it becomes increasingly easy for hackers to gain access to our personal information–and our money.
In a decentralized crypto metaverse, our digital identities are stored on the blockchain, which is immutable and secure. Metaverse crypto has these same benefits, which is why more people have adopted it. This not only protects our data from being hacked, but also gives us more control over who has access to it.
Within crypto metaverses, users have a say in the governance of the space. This is done through voting with metaverse tokens, which allow users to signal their support or opposition to different proposals.
This decentralized governance system ensures that decisions are made in the best interest of the community as a whole, rather than being dictated by a central authority. Crypto metaverses like Decentraland accomplish this through decentralized autonomous organizations (DAOs) that manage different aspects of the space.
DAOs are transparent, accountable, and inclusive, giving users a direct say in how the space is run based on their voting power, which is proportional to the number of tokens they hold. In this way, metaverse crypto is more than just a currency, game, or virtual world –it means metaverses function as microcosms of the real world, where users can experiment with different governance models and economic systems. In some cases, they can transform into microeconomies with a leadership hierarchy.
Proof of Ownership
In a traditional virtual world, our belongings are subject to the terms and conditions of the platform's creators. In a crypto metaverse, however, we own our digital assets in the form of NFTs (non-fungible tokens). NFTs are stored on the blockchain and can take many different forms, such as in-game items, digital art, or even real-world assets like property or tickets.
Since they are stored on the blockchain, NFTs are unchangeable and cannot be duplicated. This gives users complete control over their assets and allows them to be traded or sold on decentralized marketplaces.
Metaverse crypto assets can have real-world value as they are not subject to the same restrictions as fiat currency.
This means that users can use them to purchase goods and services in the real world as well as in the virtual world. In some cases, they can even be used to raise capital for projects or businesses (as long as each party deems them valuable).
One of the most exciting things about metaverse coins is their potential to bridge the gap between the virtual and real worlds. As more businesses and organizations see their value, we will see a future where our digital and physical lives integrate seamlessly.
Join SOMA Waitlist
For users that are looking to get into the DeFi ecosystem and see where the Metaverse goes, you can get on the SOMA waitlist and keep an eye on the interesting projects that will be released on the platform.
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