With the development of digital technology, computer science and other related industries, our lives have become more and more comfortable. We all can’t deny the necessity of this area, and its effects on all of us. Life is just a flow of a long river, so is the technology which demands change, and innovation from inside all the time. As we can see, computer science has developed and adapted more and more new technologies into its products. What’s it for? It’s transparent, to create a solution for each of our needs in life. It’s also the basic idea of what a metaverse is.
The metaverse is a concept of a persistent, online, 3D universe that combines multiple different virtual spaces. You can think of it as a future iteration of the internet. The metaverse will allow users to work, meet, play games, and socialize together in these 3D spaces. In the metaverse, they 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 role of cryptocurrency to the metaverse?
Today, many blockchain-based platforms use so-called non-fungible tokens and cryptocurrency, providing an ecosystem for creating, owning, and monetizing decentralized digital assets. Without blockchain, the metaverse concept is incomplete due to the various shortcomings of centralized data storage. The fact that blockchain can function globally, being a digital source operating on the principle of decentralization, fundamentally distinguishes the metaverse from the capacities of the traditional internet, which of course takes the form of websites and applications. The blockchain-based metaverse provides access to any digital space without the interference of a centralized institution.
As we can see, cryptocurrency is the key technology for the metaverse, without it the ideas of the metaverse can’t become true. Why is it that important to metaverse? Let's find out!
Any metaverse has two main components: hardware and software. The hardware component includes all types of controllers, allowing the users to interact comfortably with virtual or augmented reality. In the case of software, we’re talking about a digital environment with content available to the user. Many in the industry have come to agree that software should be based on blockchain technology which represents a secure decentralized database where independent nodes can interact in a single, dynamically updated network. It becomes quite obvious that blockchain technology can meet the requirements of the metaverse, once you look at its most important characteristics. Here is the list:
Security: The fact that the metaverse stores data measured in exabytes raises the question of safe storage, transmission, and synchronization. In this sense, blockchain technology is very relevant in the context of decentralization of storages and data processing nodes.
Trust: Blockchain implies the presence of tokens - secure storage devices capable of transmitting the likes of virtual content, personal, data and authorization keys in encrypted form. In this regard, the metaverse blockchain increases the users’ trust in the ecosystem due to the fact that confidential information will not be available to third parties.
Decentralization: To ensure the full functioning of the metaverse, all participants must see the same virtual world. A decentralized ecosystem based on blockchain technology allows thousands of independent nodes to synchronize.
Smart contracts: These make it possible to effectively regulate economic, legal, social, and other relations between ecosystem participants within the metaverse. In addition, smart contacts allow you to develop and implement the basic rules for the operation of the metaverse.
Interoperability: Blockchain facilitates the joint interoperability and functioning of different systems and interfaces without restriction. This is especially relevant when it comes to NFT valuation and turnover.
Money relations: Cryptocurrency, being an integral part of the blockchain, can act as a properly working analog of traditional money; and via the metaverse crypto it is an effective way to perform mutual settlements.