With Facebook’s recent shift to the name Meta, a global trend focusing on creating for the metaverse has been on a rise. Companies worldwide are looking for ways to get into the metaverse by creating and offering solutions for the users of this immersive online realm. But, many of them don’t know that cryptocurrency is actually the key to the metaverse. How? We explain here.
Let’s brush the basics first.
What is Metaverse?
Metaverse is nothing but a combination of advanced technologies such as virtual reality, augmented reality, eye-tracking and others to create an alternate virtual realm that exists online and is focused on digital human interaction and socialization. Facebook/Meta being a social networking company was the first major organisation to reveal its plans to launch its own metaverse “that would encompass entire digital societies and economies.”
However, not many people are aware that cryptocurrencies and blockchain have a major role to play in the metaverse. As more and more people use metaverse and perform transactions and share their personal information online, they would need a trusted way to keep all their information secure and protected. And what could be better than blockchain?
If you are not convinced, here read about some of the ways the metaverse can be benefitted from the inclusion of blockchain and crypto assets.
Blockchain/Crypto benefits for the Metaverse
1. Because blockchain is immutable, it can offer a practical guarantee of the security of data and transactions in the metaverse, thus providing a much-needed assurance to those who engage in this virtual space that their transactions are secure. Theoretically, blockchain can be integrated into any AI/VI system and will provide cryptographic security for the transactions happening on the network and prevent hacks and data breaches which are quite common in this space.
2. Because blockchain is a super-fast network, where transactions are nearly instant, it can enable transactions in the metaverse to happen really fast and securely. People who are using virtual reality and other technologies to interact in the metaverse would want transactions like payments to happen real fast. They must feel like everything is instant and real-time. And for this, the role of crypto is crucial, as it can enable fast and reliable transactions with full transparency. For instance, having a virtual payment method like the Libra Coin that is secure, fast, and transparent could just be the key to financial evolution in the metaverse.
3. Crypto payments are the future. Not just in the metaverse, but in every space, cryptocurrencies have made it possible to perform secure and fast cross-border payments for people anywhere in the world. Even in many third-world countries where even the basic banking services are unavailable to everyone, crypto is empowering people with virtual access to quick and affordable financial services like payments, e-commerce, loans, investment, and much more. And with the metaverse being a system that is completely virtual, not having a dedicated crypto-based payment system just doesn’t seem right.
Those who are worried about the high volatility of bitcoin and many altcoins, stablecoins is the answer. These new generation cryptocurrencies offer both more stable prices and the same level of freedom and privacy as any blockchain-based digital asset. With blockchain and cryptocurrencies, the metaverse may just be able to reach its full potential faster.