In the past decade, we have become increasingly dependent on the internet and the recent pandemic has solidified our dependence on the virtual ecosystem. Though this dependence has served us in a number of ways, it has also created the concepts of identity theft, arbitrary censorship, undue rent extraction (in the form of privacy cost), or sudden cessation of accounts. Thus, few conglomerates or authorities can control our behavior and conduct by controlling our virtual world.
Further, more time spent online has lead to the creation and consumption of more value digitally. To maximize this value, our society needs to allocate serious time and capital for virtual environments, and for this, the environment needs to be durable, secure, and robust. Blockchain has proved to be one such solution.
Blockchain has arrived in our lives as ‘the light at the end of the tunnel’ as it can save us from the control and censorship of the conglomerates and higher authorities while providing an ecosystem that is secure and durable. Blockchain has changed our mindset of security from “secure is Private” to “secure is Public”.
And thus with the power of blockchain and the internet, our virtual world is ready to take a new leap and converge with our real-world (augmented reality) in ways that were never thought of before. This in short can be termed as Metaverse.
Metaverse For Beginners:
Metaverse is a digital world in which anything we can imagine, can exist. The term ‘meta’ means ‘beyond’ and ‘verse’ means ‘universe’, and so the metaverse is the extension of the universe of physical and virtual reality.
The metaverse is that collective, shared virtual space that is created when the physical realm converges with the virtual realm, which includes virtual reality, augmented reality, and the internet. Metaverse has the potential to become a separate individual economy in the coming decade.
The concept of Metaverse can be better understood from Steven Spielberg’s 2018 adaptation of Ernest Cline’s Ready Player One (2011).
Though everyone is still contemplating how the metaverse ecosystem would look like, an author named Matthew Ball has tried to crystalize the idea of this ecosystem as follows:
- Fiercely social
- Live and synchronous
- Massively scalable
- Hardware agnostic
- Highly interoperable
- Economically fertile
- A bridge between worlds
To read more on Matthew’s views about metaverse, click here.
It is important to understand that metaverse need not incorporate blockchain to exist, but to make the ecosystem fairer and securer to all the participants, blockchain will play a pivotal role in its development. With metaverse, humans will evolve as a fully grown digital species.
Now, let us discuss more on the integration of metaverse with blockchain and cryptocurrencies.
Crypto meets Metaverse
Digital assets and crypto seem to be the most imperative vertical in driving the emergence of a true Metaverse. Hence, we hear and see NFT everywhere.
Non Fungible Tokens are the first step to integrating individual ownership with digital assets. A Non-Fungible Token (NFT) is a digital item that can be created (minted), sold, or purchased on an open market, and owned and controlled by any individual user, without the permission or support of any centralized company.
In order for digital items to have real, lasting value, they must exist independent of an entity who might decide at any moment to remove or disable the item. What NFTs enable for the first time is a decentralized, universal digital representation and ownership layer through which scarcity, uniqueness, and authenticity can be transparently managed.
Therefore, crypto can be the foundation stone needed for the metaverse.
Why do you need to know about Metaverse?
Now let us address the elephant in the room, why am I dumping so much technical stuff on you. Simply, because I have identified an opportunity and would want you to see it as well.
Today, the 10 biggest companies in the world are the ones who adopted the internet when either no one knew about it or if knew, was very skeptical about it. We can be the early identifiers of the potential new-age internet.
There are a number of crypto projects which are trying to develop a full-fledge blockchain-based digital ecosystem. And because it is based on the blockchain, we can participate in the projects by owning their tokens. One such project that I am admiring these days is Decentraland.
Decentraland is a 3D space where you can build virtual worlds, play games, explore museums packed with NFT art, attend live concerts, etc. It works in a standard web browser to give you access to the cryptocurrency and NFT features. You can buy and sell properties, create and sell virtual art for the art galleries, or build worlds. Several companies have invested in land in Decentraland, and some of them may be willing to pay skilled builders to develop it.
There are no limits to what all can be done in this space. Therefore, I am very intrigued with the idea of this new generation of tech which can change the world and our portfolios for good in the near future. I will keep you updated on such projects and will let you know about all the substantial changes.
Please note that I am not a financial advisor and nothing said above is a financial advice. Please DYOR before investing.
Let me know your thoughts on the above.
Harsh Agrawal is the Crypto exchange and bots expert for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in the fin-tech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
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