Metaverse is still in its developmental stage. Cryptocurrency and metaverse seem to be two concepts that will go hand in hand, virtual money and virtual world relationship. The metaverse has been in place for some time now, it takes a virtual reality and an augmented space where a 3D ecosystem co-exists. Metaverse can be described as a world of fantasy and exploration. Metaverse is similar to what happens in real life, with the only difference being digitization and virtual reality.
Blockchain in both Metaverse and Cryptocurrencies
Transactions in the metaverse are made through fiat cash and cryptocurrency. Cryptocurrencies are virtual currencies that are traded online by using blockchain technology. The crypto assets are exchanged between a seller and a buyer without the existence of any intermediary like the bank hence reducing the process cost and speeding up the transaction time. Metaverse being a digital world, the development of cryptocurrency is perfect for unlocking more benefits.
Although cryptocurrency and the metaverse are totally two different things, they could heavily depend on each other as they develop. Metaverse, with its 3D space, is utilizing blockchain technology. Some of the 3D spaces are video games where the players interact with each other. The majority of the games enable users to buy digital items. They can purchase their game outfits and fit them virtually.
The use of blockchain is advantageous for its unhackability and immutability features which are critical in any virtual reality system. Not only does blockchain allow quick information confirmation, but also the transactions made are safeguarded. Development of Augmented and Virtual reality is still taking place on blockchain-based platforms. As the metaverse is becoming more transparent, the fact remains that digital currency and blockchain will have significant input in its implementation.
With the possibility of e-commerce and interactions, cryptocurrencies will be necessary and already Bitcoin and Ethereum are being used. The peer-to-peer transaction is a promising method of fast settlement of funds. Ownership of items is guaranteed using the non-fungible token. According to joystickgaming.io some existing projects in the metaverse are using cryptocurrencies, and this is evident mainly in the video game industry, like the Sandbox and Decentraland.
The road to adoption of Cryptocurrencies in Metaverse
As the cryptos become the main form of exchange for people transacting on the metaverse, users will eventually be comfortable acquiring, handling and storing them. No one can tell the state which metaverse will take, but we can’t wait to see once it is entirely in our lives. Being a virtual world, then cryptocurrencies, virtual currencies, are the best fit.
A significant advantage of the virtual world is the less friction in the process. As the metaverse becomes more popular, people spend much time online, working in virtual offices, and playing games, which are frictionless methods. Hence, a frictionless way of paying for virtual services is necessary. Perhaps one may want to own a virtual real estate where they will build their virtual business. All this could be realized by using cryptocurrency as a means of service and goods payment.