The Role of Crypto in the Metaverse

The Role of Crypto in the Metaverse

Metaverse attracts many companies in various industries. Explore the roles of crypto in this booming market.

Crypto and the Metaverse – A Match Made in Heaven?

From augmented realities to crypto and web 3.0, many projects are taking shape to accelerate significant changes in human interaction on the internet. And lately, metaverse conversations have come to the fore as more narratives and ideas emerge and big moves are made almost every two weeks.

The promise of the metastore, among many other things, is to provide an internet-enabled augmented reality that will be device and location independent. Blockchain and crypto, among others, promise to lower the cost of trust, bank the unbanked, and redefine digital ownership. A potential mix between crypto and metaverse looks more appealing, so let’s briefly look at some exciting prospects.

Crypto Metaverse – Financialization

The first thing that comes to mind in this merger is financialization. Crypto helps financialize assets in three ways: identity, digital ownership and trading.

1. Identity

The metadata store will most likely be an interaction of augmented realities and a web3 touch, and of course a valid definition will be needed. Now, it’s unlikely that users will still subscribe to long, grueling know-your-customer processes or sign up for a decentralized system where users’ identities will be tied to a public address, just like decentralized crypto wallets. Your crypto wallets not only help you store your tokens; your avatars, clothes, accessories, weapons etc. They can also be used to store digital products such as You can decide to keep them in your wallet as a store of value or use them in other interoperable metaversions.

2. Trade

Commerce is fundamental to human nature and if we are to get anywhere, scaling out of the economic rent system that is distorting the current financial landscape is essential. Stablecoins are an ideal choice for exchange of value in the metadatabase. By leveraging the unlimitedness of crypto on fiat’s stability, asset buying and selling becomes seamless. And of course, existing crypto markets will encourage the sale of virtual lands and properties, especially cross-chain markets like AirNFTs.

3. Digital property

By now everyone should probably know that the concept of digital ownership has changed thanks to NFTs. Assets in the metadata store would be very convenient as NFTs as users would be able to secure immutable, generally verifiable rights to use them later and trade in the markets.

Crypto and the Metaverse: How Safe is it?

Blockchain, the technology that powers cryptocurrencies and NFTs, is arguably the most secure network we have right now. Transacting on a blockchain network means decentralization, immutability and transparency, among other things. Anyone who wants to check can easily see and verify all the data at any time.

Crypto Metaverse Already “Exists”

Although still in the early days, crypto-based virtual terrains are already a thing thanks to virtual land projects. SandBox, for example, aims to create a virtual metadata store where users can own, create, and even play games with haptic feedback. The project has received a lot of attention and recently Gucci announced He said that they set up their virtual store in the game.

Decentraland is also gaining huge traction, with JP Morgan launching the first metaverse hall on the blockchain-based platform.

Conclusion: Is the Crypto Metaverse a Fad?

While the metaverse and crypto are largely unexplored and can still take different forms, very little we know indicates that a potential mix will be formed in significant ways on the current internet. Therefore, it is reasonable to expect more positive news about developments over time.

Stay on the blog this year and follow all of our social media to keep your fingers on the pulse of the metaverse.

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