In 2021, Facebook started rebranding itself as Meta as it wants to extend the idea of Metaverse. It is now a buzzword because everyone is it using from tech CEOs to video gamers and even memers. Metaverse is the future of technology and the internet. Most importantly, blockchain, Cryptocurrencies and NFTs are going to be in the centre of the Metaverse.
What is Metaverse?
Metaverse is an online digital universe where a person can live and interact with different things virtually. Therefore, it requires a combination of multiple different technologies like VR, Augmented reality, cloud computing and many more. It is already present in some form as VRChart or as VR videogames.
The term “Metaverse” comes from a sci-fi dystopian novel of 1992 by Neal Stephenson, Snow Crash. Moreover,it serves as an inspiration for another popular novel Ready Player One by Earnest Cline. But, the Metaverse exists outside the sci-fi world, for quite some time now. That is to say, it is not at all a new concept.
Virtual online communities are in existence since the mid-80s. AOL instant messenger and some forms of the first social media sites of the 1990s assisted the growth of these communities. In the early 2000s, the game World of Warcraft created a lasting social scene for millions of people, and online communities have continued to pop up within and around games.
Second Life, a 2003 video game, is often described as the first Metaverse. Second Life incorporates multiple aspects of social media into a persistent VR world. Many new games like Minecraft, Active Worlds, Roblox, Fortnite, etc. represents a modern implementation of Metaverse.
The Blockchain Metaverse
Metaverse works by connecting individual nodes all over the world. However, this is not possible on a centralised network like the Internet. One can say that the it was waiting for something like blockchain. The decentralising property of blockchain is giving a major push to the Metaverse. The best example of blockchain metaverse, Decentraland, is an Ethereum-based virtual world that allows users to play, interact and explore games with each other. Users can buy lands, customize their surroundings and do many more activities. It is a VR decentralise platform that uses the Ethereum blockchain.
There are several areas in which Blockchain Metaverse may benefit the entire globe. In terms of technological advancement, the combination of the Meta verse and blockchain technology will result in significant improvements to the Internet environment.
What it means for cryptocurrencies and NFTs
Cryptocurrencies and NFTs are the main pillars on which the Metaverse is going to operate. In the boring real world, we use fiat money for transactions. But, in the new and exciting virtual world, this fiat money is not going to work. Then how is one going to buy stuff in this virtual world? You got it- Crypto.
Cryptocurrency is the ideal means of trade for this rapidly evolving metaverse society. Because, speed, security and transparency are the most important aspects of the metaverse and crypto can fulfil all three.
Cryptocurrencies provide lightning-fast speed which is crucial for the working of the Multiverse. Then there is the security question. One can be confident that their funds are safe if they use cryptocurrencies because it operates on a public ledger like blockchain, where every transaction you make is irreversible, traceable, and secure. After all, cryptocurrencies like bitcoin use highly sophisticated cryptography technology for encryption and fund protection.
What does it mean for traders?
If you trade in cryptos or NFTs, you can expect a huge amount of money coming into the market as companies move towards making metaverse a reality. Consequently, this money will give a boost to innovation in the fields of blockchain and crypto.
One can expect big players to move toward more decentralised options which can potentially bring newer investors, more crypto-friendly policies of different countries, new blockchain networks and many innovations around them.