Many things have been written about metaverse. And with Facebook (now Meta) so involved in this space, there will undoubtedly be much debate about how this sector will evolve. However, the metaverse presents an excellent opportunity for blockchain and cryptocurrency assets to become mainstream. Let’s dive in.
The metaverse promises that users will experience augmented reality that may be more immersive than physical reality. It is not clear how all this information will protect and be secure. This is what is often missing in the discussion about the metaverse’s potential. What can people do to ensure that their transactions and information are safe if they spend increasing time in virtual reality? Virtual reality and how to engage with it has been the subject of many discussions in recent times. However, what has not been discussed is the implications and impact blockchain, and crypto will have on this revolutionary idea.
To function correctly, the metaverse requires crypto. Let us see why.
A blockchain is immutable. To date, blockchain and cryptocurrency platforms have been proven to be inflexible and unhackable. This is crucial if any virtual world platform is to become mainstream. If an individual or group of people will engage with others in a virtual world, they need to have some assurance that the transactions are secure.
Hacks and data breaches are common, but if people engage in an entirely online and virtual environment, then the platform on which they will be working must be secure.
Blockchain allows for instantaneous verification of information and will enable transactions to be cryptographically secure and protected. The blockchain and crypto assets, therefore, are integral parts of the virtual reality implementation.
Instant transactions. Based on the first point above, the metaverse will need and require transactions to be performed on-demand. This is something blockchain, and crypto assets could help facilitate. To make virtual reality work, transactions must occur quickly and securely. The ecosystem members will need to 1) be able to transact and communicate as easily and as quickly as possible if they were there in person and 2) be confident that the transactions will be completed.
The potential for cryptocurrency payments is evident, especially as it is linked to the metaverse. This is based on the familiarity people have with online payments. An online environment or virtual ecosystem will require a payment method that is traceable, secure, and transparent. This will make a significant contribution to how the space evolves.
The use of crypto transactions is a proven and viable method for individuals or institutions to make transactions virtual, traceable, and real-time.
Crypto payments already exist. The trend towards online and virtual payments is growing even without implementing blockchain and crypto-asset technologies. With the introduction of crypto payments at companies such as Visa +1.8%, Mastercard +0.3%, PayPal, transacting and engaging in commerce online has become a more mainstream trend. The metaverse is entirely virtual and crypto-enabled, or augment payments will be more popular than ever.
The ability to make transactions via crypto is now easier than ever, despite the volatility associated with bitcoin and other centrally centralized cryptocurrencies. In other words, everyone who needs to do transactions using crypto or a platform that uses crypto (such as the metaverse) has many options.
Although the metaverse is still a rapidly developing area, it is clear that blockchain and cryptocurrency assets will play an essential role in future implementation. This space can be hugely successful, but it will require a transparent and traceable system to 1) conduct transactions and interact with others. Cryptoassets and blockchain could provide this solution. Although the metaverse might focus on media attention, blockchain and crypto assets can help this technology reach its full potential.