Crypto and the Metaverse — All You Need to Know
Today, many people associate the words “digital currency” with Bitcoin, but dozens of different cryptocurrencies exist. While, at present, it is difficult to see any cryptocurrency as a true successor to Bitcoin, it is possible that one could emerge in the future that would become a global leader.
As blockchain technology continues to flourish, its associated benefits have also been found in many other sectors of society. As a result, the idea of decentralized applications is becoming more and more popular- especially among those looking for alternative sources of income.
This article will provide a brief overview of everything you need to know about cryptocurrencies and the Metaverse as they relate to one another. This is crucial for people wanting to enter into this space to have at least some understanding of both terms before diving in.
What is Cryptocurrency?
Cryptocurrency is an example of digital or virtual currency; these are mediums of exchange that use cryptography for security. Bitcoin, created in 2009 by an anonymous person or group called Satoshi Nakamoto, emerged onto the scene as a functional form of cryptography and has since become one of the most sought-after assets. In less than a decade, it has seen massive price increases, and wide adoption and has become the subject of study among investors and economists alike.
What is a Blockchain?
A blockchain is an immutable record of all transactions about a particular cryptocurrency. It is unchangeable and transparent. In this instance, blockchain refers to the specific technologies that allow Bitcoin to function as a decentralized currency without relying on any parties or banks.
What is the Metaverse?
Metaverse is an open-source, public blockchain that aims to improve on the limitations of Ethereum. It also pays special attention to user experience and cross-chain interoperability. The project aims to create a fully-functional blockchain that is easy to use whilst being able to connect with other chains.
Metaverse uses a unique consensus mechanism called “Proof of Human” (“PoH”), which allows both open and anonymous Metaverse users through the use of one-time accounts. This allows all users, regardless of technical ability or prior knowledge, to freely transact on the blockchain without having to create their own accounts, thereby reducing systemic costs for businesses in this space.
Who created the Metaverse?
Much like the Internet, the Metaverse was a group effort. The concept originated from Neal Stephenson’s 1992 science fiction novel Snow Crash, and that book’s depiction of a virtual reality-based social network helped build enthusiasm for VR in Silicon Valley and give it a name: the Metaverse. Although a corporation or a single platform doesn’t own the Metaverse, all of its users can take control of their private data.
How does Cryptocurrency fit into the Metaverse?
As mentioned above, Cryptocurrency has become favored among traders and investors. Metaverse will offer users the ability to exchange their legacy funds for tokens on Ethereum to facilitate the integration of Cryptocurrency on its platform. Furthermore, Metaverse aims to create a decentralized marketplace known as “The Metaverse Ecosystem.”
In the Metaverse Ecosystem, two types of products will be offered:
1) Identity & Reputation Management: This external service verifies user identities and manages user reputation via Ethereum-based smart contracts. It integrates with existing online media platforms such as online forums and social media networks, allowing users to leverage their digital identities (social capital) in exchange for influence over others within these online communities.
2) Decentralized Marketplace: The Metaverse Ecosystem will offer the largest decentralized marketplace that has been built on the Metaverse blockchain. Products and services can be listed via smart contracts, allowing sellers to determine their own prices and commission rates. For buyers, this allows them to purchase products directly from vendors without having to go through any third parties. In addition, there is no risk of fraud or theft because all smart contract transactions are executed automatically and autonomously — as long as both parties agree, and the information stated in the smart contract is correct; the transaction can be completed immediately.
Where can I learn more about the Metaverse?
The best place to learn more about the Metaverse is at Metaverse Roadmap, which is the hub for all things related to the Metaverse. It is constantly updated and has links to numerous articles, videos, and other resources which explain how we will reach this point in the future.
The way I see it, the Metaverse project is a very ambitious one. For this vision to come true, many parties will have to believe in the same idea and work together towards that goal. As a decentralized platform, I believe this project could be valuable to many users in the long run. With Cryptocurrencies being disruptive and innovative in their way as the internet itself, everyone would be able to afford exciting opportunities to be part of an emerging system that can change our world for the better.