Crypto and Metaverse - A Match Made in Heaven?
From extended realities to crypto and web 3.0, several projects are shaping up to hasten significant shifts in human interaction on the internet. And recently, metaverse talks have surged to the forefront, with more narratives and ideas being churned out, and big moves made almost every other week.Â
The promise of the metaverse, among many other things, is that it will provide an internet-enabled extended reality that will be device- and location-agnostic. Blockchain and crypto, among others, promise to reduce the cost of trust, bank the unbanked, and redefine digital ownership. A potential mix between crypto and metaverse looks more appealing, let's briefly look at some exciting prospects.
The Crypto Metaverse - Financialization
The first thing that comes to mind in this merger is financialization. Crypto helps with financializing assets in three ways— identity, digital ownership, and trade.
1. Identity
The metaverse will likely be an interplay of extended realities and a touch of web3, and of course, a valid identification will be needed. Now, it's unlikely that users will still subscribe to long, tiresome know-your-customer processes or side with a decentralized system where users' identities will be tied to a public address just like decentralized crypto wallets. Your crypto wallets are not only helpful in keeping your tokens; they can also be used to keep digital products like your avatars, clothings, accessories, weapons etc. You can decide to keep them in your wallet as a store of value or use them in other interoperable metaverses.Â
2. Trade
Trade is fundamental to human nature, and it is essential to scale from the economic rent system riddling the current financial landscape if we're going to get anywhere. Stablecoins are an ideal fit for value exchange in the metaverse. By leveraging the borderlessness of crypto on the stability of fiat, buying and selling assets becomes seamless. And, of course, existing crypto marketplaces would foster sales of virtual lands and properties, especially cross-chain marketplaces like AirNFTs.
3. Digital ownership
By now, everyone should probably know that the concept of digital ownership is changing thanks to NFTs. Assets in the metaverse will be well suited as NFTs as users can then secure immutable, publicly verifiable rights to use them and trade in marketplaces.Â
Crypto and Metaverse: How Secure is it?
Blockchain, the tech powering cryptocurrencies and NFTs, is arguably the most secure network we have right now. Transacting on a blockchain network, among other things, means decentralization, immutability, and transparency. Anyone who cares to check can easily see and verify all data at any time.
The Crypto Metaverse Already “Exists”
Although still in the early days, the crypto-based virtual lands are already a thing, thanks to virtual land projects. SandBox, for example, aims to create a virtual metaverse where users can acquire properties, build, and even play games with haptic feedback. The project has attracted immense attention, and recently, Gucci announced that they are building their virtual shop in the game.Â
Decentraland has also been gaining huge traction, JP Morgan launched their first metaverse lounge in the blockchain-based platform.Â
Conclusion: Is the Crypto Metaverse a Fad?
While the metaverse and crypto are largely unexplored and can still morph to different shapes, the little we know shows that a potential mix will build on the existing internet in substantial ways. So it is reasonable to expect more positive news on developments over time.
Stay on the blog this year and follow all our socials to keep your fingers on the metaverse pulse.
