Metaverse, blockchain, and cryptocurrencies have all emerged as important trends in recent years. The digital environment is moving further into a new era defined by decentralization.
It is this component of the “web3” landscape that paves the way for a new era of metaverse experiences. After all, the Metaverse is more than just a single branded environment or augmented reality experience. It is a decentralized network of virtual worlds, a community that relies on the transparency and accessibility offered by blockchain technology.
The “Metaverse Blockchain” represents one of the core components of the unique environment and economy that the Metaverse promises to bring to the world.
Let’s explore how the “Blockchain Metaverse” is impacting the world as we know it.
The Rise of the Metaverse, Blockchain, and Web3
To understand the relationships between the metaverse, blockchains, cryptocurrencies, and other emerging concepts, we first need to take a closer look at the evolution of the Internet.
At the beginning of the Internet revolution, Web 1.0 made it possible to share information online. It was an information superhighway of interconnected servers and computers based on a centralized platform.
Web 2.0 has transformed the Internet into a more social experience. Networking sites and blogs have unlocked new modes of communication for digitally savvy consumers. However, centralization remained important to the online experience. Entities such as Facebook and Google began to take ownership of content, assets and data.
Web 3.0 is the new “next generation” of the Internet. Web 3.0 is designed to give back ownership to content creators and consumers and is based on decentralization. Blockchain is the technology that powers that decentralized experience. This provides transparency into ownership, asset transfers, and contractual obligations.
Web 3.0, or “Web3”, also forms the foundation of the Metaverse. The overall goal of the Metaverse is to create a decentralized and accessible environment where people can interact, transact and connect.
Metaverse Blockchain Definition: What is a Blockchain?
So how does blockchain work and why is it so important in shaping the ‘metaverse’? As a concept, blockchain was first developed in 1991 by W. Scott Stonetta and Stuart Haber. . It was a tool for “timestamping” documents without a central authority.
However, it wasn’t until 2008 that “blockchain” was officially and widely introduced to the world. At this time, the anonymous creator of Bitcoin, Satoshi Nakamoto, introduced a new distributed ledger technology. This “blockchain” strategy underpinned the first cryptocurrencies.
Blockchain has become a comprehensive database spanning multiple nodes or connectors. This decentralized structure promised better security and transparency with no single point of failure.
A core component of blockchain is the ability to collect and share immutable data. Records on the blockchain can include everything from transaction details to the time of a “block” change.
Blockchain technology is often associated with cryptocurrencies such as Bitcoin and Ethereum, but its use cases extend beyond the financial sector. Blockchain can serve a variety of industries by providing a fraud-proof environment for tracking data.
Blockchain can also be used to verify identities, create contracts, and even track and audit processes in the digital world.
Is the Metaverse Built on Blockchain?
So what is the Metaverse blockchain? Is the Metaverse built entirely on blockchain technology?
Not exactly, but blockchain plays a key role in creating Metaverse experiences. First, the ‘metaverse’ structure depends on this digital environment and does not belong to a single person.
The Metaverse is not owned by other famous innovators like Meta or Decentraland. It is a decentralized environment where any individual or company can build or explore virtual worlds. Blockchain supports this methodology.
The Metaverse blockchain technology ensures that the Metaverse becomes an open space where people can move between virtual worlds and acquire assets. For example, if you want to transfer an avatar from Microsoft Mesh to Facebook’s Horizon Worlds, the blockchain must be able to authenticate ownership of that digital ID.
Similarly, if you buy an NFT in the Metaverse and want to take it home in Decentraland, the blockchain should allow you to do that too. Essentially, the idea of the Metaverse blockchain is that as long as you have access to your “wallet” and your cryptocurrency or blockchain identity in the virtual world, you can access your assets.
Of course, the metaverse and blockchain are still relatively early concepts. Standards are still being developed on how to utilize the blockchain environment within the metaverse.
groups like blockchain association, the XR Association, and several governments are joining the effort to set the standards, ethics and frameworks for this new world. But we are still in the early stages of discovering what is possible.
Relationship between metaverse and blockchain
The link between the metaverse and blockchain technology is far more complex than most people realize. Without blockchain technology, creating a truly inclusive metaverse environment will be difficult. Many companies take different approaches to their “metaverse creation” strategy, but the goal of most innovators is the same.
Metaverse developers are working to build a decentralized network of digital worlds accessible to everyone. These spaces connect users in all aspects of life, unlock new economies and develop thriving communities.
The Metaverse blockchain serves the Metaverse environment in several ways.
Establishment of the metaverse economy
Blockchain is a core component of many cryptocurrency solutions. From NFTs to cryptocoins, it enables the construction of a virtual economy using different styles of tokens. Each metaverse blockchain can support its own currency and economy.
Blockchain allows individuals and institutions to instantly execute traceable transactions. This will allow you to safely purchase everything from Metaverse lands to avatar apparel. The Metaverse also offers creators new ways to monetize their content and experiences through blockchain-powered sales.
In some Metaverse environments, users can sign up for blockchain-based digital cryptocurrency wallets to earn NFTs, cryptocurrencies, and other digital assets. Players are also free to transfer their digital assets to other platforms.
We have already seen examples of metaverse economies growing on blockchains. Decentraland with LAND tokens, Fortnite with in-game transactions, and even Roblox.
Ensuring Safety and Security of the Metaverse
Metaverse security is a much debated topic. No specific laws or guidelines have yet been established to protect all users in this new and unique environment. The Metaverse blockchain cannot eliminate all potential risks, but it can provide some security pillars.
The unhackable and immutable nature of blockchain facilitates the protection of digital assets in a decentralized environment. Blockchain does more than just allow for quick confirmation of information. It also enables cryptographically secure and protected transactions.
Blockchain makes it easy to track actions and changes in the virtual world, potentially tracking the person or actor involved in a particular attack. Blockchain technology is already being used in various financial environments to improve the security of transactions.
Additionally, the Metaverse blockchain technology could help resolve disputes over IP fraud and plagiarism. Blockchain can verify asset ownership and reduce IP theft.
Building a metaverse landscape
The metaverse blockchain also provides a foundation for building traversing landscapes within the metaverse. When people buy “metaverse real estate,” they’re not buying a packet of land. They are buying segments of the blockchain.
Platforms such as Decentraland and The Sandbox facilitate this with metaverse virtual real estate. By offering businesses and individuals the opportunity to purchase “space” within the Metaverse, blockchain opens the door to creating new worlds and experiences.
Businesses can use these blockchain properties to build all kinds of virtual experiences. Individual consumers can also use their Metaverse “home” as an environment for storing NFTs, assets, and other digital content.
Preserving Metaverse IDs
The Metaverse blockchain builds on the ability to maintain security within the Metaverse and also provides the opportunity to protect user identities. Many metaverse platforms leverage blockchain technology to validate user data when accessing critical infrastructure.
In some parts of the world, government agencies such as the Dubai Ministry of Health and Prevention (MOHAP) and cities in South Korea and China are already leveraging NFTs and blockchain to track national records, access medical files, and secure offers a service.
The Metaverse blockchain serves as a great solution for authentication and verification. This will be essential in a future where people use the Metaverse for entertainment, education and work.
In the future, people may be able to access their own digital footprints using blockchain data linked to interoperable avatars. This becomes important for creating a metaverse for conducting real-world transactions.
Developing a passionate metaverse community
Blockchain also offers businesses and institutions new ways to develop and connect virtual communities. Creators around the world are using blockchain technology and the Metaverse to build society.
Many people know the Bored Ape Yacht Club (BAYC) and other NFT collectives. These blockchain-based communities connect with tribes using decentralized assets and rewards. For example, the Dancing Seahorse DAO gives NFT holders exclusive access to nightclub franchises in various locations.
Brands are also leveraging the community-building opportunities offered by blockchain and the metaverse. Coca-Cola, Adidas, and Nike have all invested in his NFTs powered by the Metaverse environment and blockchain to help engage consumers.
This could lead to a new revolution in how businesses connect with their audiences in an environment where “social media networks” are replaced by accessible, decentralized communities.
Metaverse Blockchain: An Important Part of the New World
Fundamentally, the “metaverse blockchain” will be an important part of our future. Blockchain technology enables businesses and creators to build virtual environments that are safe, secure and accessible.
Blockchain technology allows metaverse creators to facilitate more than cryptocurrency transactions. They are perfect for traversing tomorrow’s digital world, helping viewers build a truly authentic digital identity.
Blockchain will be pivotal in shaping a future where no single company or entity controls the metaverse. It fulfills the promise of “mobility” within the metaverse by enabling the transfer of assets. It also introduces the foundations of a new economy and paves the way for secure interactions.