What is the Metaverse, how does it work?

Last Updated: 05-Jan-2022

Short Answer

The Metaverse represents a digital universe integrated with various factors like virtual reality, NFTs, interactive gaming, etc. Although the possibilities of a metaverse are endless, an individual can hang around anonymously, play games, earn cryptocurrencies and spend it in the real world with the help of swapping the currencies.

Detailed Answer

What is the Metaverse?

Imagine a separate universe where you could be anyone, go anyplace or perform anything, which will not affect the real world. By all means, it does sound like fiction but it is already a reality and is expanding at an exceedingly fast pace.

This was the concept of the ‘Metaverse’, which can also be termed as a virtual reality simulation world, that can be accessed by anyone from any part of the world to play, earn, or just hang around. The metaverse can also be called a separate digital world where people can live separate lives, work separate jobs and spend on various objects. There are multiple movies like ‘Ready Player One’, ‘The Matrix’, etc which you can watch to get a fair understanding of how metaverse is in reality. Apart from that, you can also experience it for yourself using multiple platforms like Sandbox, Axie Infinity, etc. Recently Facebook the largest social media company renamed itself to ‘Meta’ which is not only a bold statement from the company but also tells us that Metaverse is the future of blockchain and cryptocurrencies.

How is the Metaverse linked with cryptocurrencies?

As the metaverse is completely based on the internet, the safety and authenticity of the whole platform are equally important for the users. Due to this reason, the blockchain becomes the ideal platform to build any metaverse on as it is tamper-proof and is accessible to all through the internet. Furthermore, the objects transacted on the metaverse are in the form of NFTs (Non-Fungible Tokens) which are transferred onto the blockchain.

Apart from this, the fiat currency that you use to buy your daily objects is of no good in the metaverse because you cannot use Rupee or Dollars on the metaverse to exchange goods and services. To combat the problem, cryptocurrency comes into the picture. Because of the fact that cryptocurrencies are digital currencies, they can be easily used on the metaverse. Also, build on the blockchain network, the transactions are completely safe and secure.

Let’s understand the utilization of cryptocurrencies in the metaverse with an example

First, let us consider the example of GTA San Andreas, which is one of the most popular PC games of all time. Here, you can earn money by performing missions and other tasks. But the money you have can only be spent inside the game. But what if you could earn in the game and spend the same elsewhere?

Here comes the concept of the Metaverse

Imagine you are playing a game in the metaverse where you receive 100X’ tokens. As these tokens are cryptocurrencies they cannot be employed directly to purchase anything in the tangible world.

Whereas the blockchain facilitates token swaps which mean you can swap those 100 ‘X’ token into Bitcoin or Ethereum. Furthermore, you can sell your crypto or exchange it for cash. In this way, you will be capable to earn in the metaverse and use the money to buy anything that you desire in the actual world.

How does the metaverse work?

The metaverse is fundamentally a simulation world that is accessed by countless individuals who come on the platform.

To break it down, even more, imaging the metaverse as a virtual game that you can enter and can do anything anonymously, with other real-time players. You can also host events or parties in the metaverse. Buy and sell NFTs, play games, etc. The possibilities are endless in a metaverse. At this place, you can select your own avatar, change accessories in the form of NFTs, and also trade them in return for crypto tokens or other objects.

Many million-dollar gaming companies are already getting into this space. Leading companies like Atari, Nvidea, Nike, Adidas, etc are all buying up land in a Metaverse known as Sandbox. Numerous singers have hoisted live shows in the Metaverse, which was attended by thousands of people from the comfort of their homes.

Multiple companies and brands can integrate their products and services into the metaverse. So that you can buy their products in the form of NFTs and boast exclusive rights to them.

This grants you the freedom to experience multiple virtual lives and also earn and spend from numerous places.

Conclusion

A perfect metaverse or rather metaverses are still in the making. But as technology advances, the importance and significance of such virtual realities will increase. It’s not long from now when we shall witness separate economies inside of metaverses. Such projects will not only have real-world use cases but will increase the stability of blockchain and cryptocurrencies in general. Also increase employment, in and out of the metaverse.

Tagged With: blockchain technologycryptocurrenciesmetaversevirtual realitysimulation
Categories: Cryptocurrency
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