The Metaverse has swept the world by storm recently. However, it remains a new and unfamiliar concept to many people, including those in the crypto economy.
What exactly is the Metaverse? How does it work?
We answer those questions and more below.
Is Metaverse a Cryptocurrency?
The Metaverse isn’t a cryptocurrency. It’s a way to unite people and things and get them to interact in a virtual world. It could also be a collection of virtual worlds.
The Metaverse uses virtual reality (VR) and Augmented Reality (AR). As it stands, the Metaverse is in its infancy and will evolve into something more expansive.
On the other hand, Cryptocurrency is a form of decentralized digital currency where transactions are verified and records maintained by a decentralized system that uses cryptography to secure the network.
So How Do Cryptocurrency and Metaverse Relate?
There are some similarities and differences between the two concepts.
Cryptocurrency appears to be how most people prefer to interact with the Metaverse. Since both technologies are online and virtual, you can use them simultaneously.
Trading virtual assets in the Metaverse requires cryptocurrency rather than cash (fiat money).
Both Cryptocurrency and the Metaverse use computer software and hardware in different ways.
Cryptocurrency requires hardware to verify transactions on blockchains. However, not all cryptocurrency should be mined.
To interact with the Metaverse, you’ll need hardware to play virtual games, live a digital life, or interact with digital objects. Hardware is also how you keep both the crypto and Metaverse ecosystems alive.
Software is what creates a user-friendly interface to help people interact with technology.
To trade or swap crypto, you need a software interface to interact with the marketplace. Minting NFTs and storing your crypto tokens in your wallet also uses software (and sometimes hardware) wallets.
In the Metaverse, the software creates virtual and augmented experiences within the virtual reality world.
Learn more about the relationship between NFTs and cryptocurrencies.
What is The Metaverse and How Does It Work?
The Metaverse merges the physical world with virtual and augmented reality and breaks the barrier between online interactions and real life.
There are different Metaverses currently, and each works slightly differently. However, joining most metaverse platforms is easy and free of charge.
You can buy in-game tokens and other assets in a gaming metaverse to enhance your experience. In Decentraland, for example, you can purchase virtual land and develop virtual real estate on it.
How is Crypto Related to The Metaverse?
Crypto and the Metaverse intersect where transactions occur. Where fiat currency has limitations, cryptocurrency does not.
Since the value of Cryptocurrency is agreed upon by all its users, there are no restrictions to trade in the Metaverse. Therefore, all participants in the Metaverse can use cryptocurrency to trade assets.
Also, all cryptocurrencies and metaverses are decentralized. They have no borders, and anyone who has access can participate in the crypto economy or the Metaverse. That makes these two technologies uniquely suited to work together.
What Are the 4 Types of Cryptocurrency
There are 4 different types of Cryptocurrency, based on how they’re used.
Cryptocurrencies of this type work precisely like traditional (or fiat) currency. The first type of cryptos, including Bitcoin, were designed to make cross-border transactions cheaper and faster.
Cryptos used as currency can buy both physical and digital assets. They’re tokens backed by their parent blockchain.
Cryptos can be used as assets or stores of value in most instances.
Most cryptos draw their value from their underlying technologies, communities, and applications. This makes their tokens valuable, hence an increase in value.
Stablecoins are another excellent example. Since they are backed by fiat currency, an underlying cryptocurrency, or precious metals, they’re assets that retain their value over time.
Meme coins have no unique purpose. As the name suggests, they are fun tokens, often created as a joke.
They have no intrinsic value and are volatile. Their value could go to zero at any time, but they could also grow into serious contenders in the crypto market.
Shiba Inu and Dogecoin are some famous examples.
Object cryptocurrencies finance special projects that solve real-world problems. Instead of just acting as a currency, object cryptocurrencies finance unique projects that address challenges many people face.
Is Blockchain A Metaverse?
The blockchain isn’t the Metaverse or a type of Metaverse. A blockchain is a decentralized database shared among many computer nodes.
The goal of the blockchain is to record and distribute digital information in a way that can’t be edited, altered, deleted, or destroyed.
Blockchain technology is behind smart contracts, Decentralized Finance Applications, NFTs, and cryptocurrencies themselves.
Is the Metaverse Decentralized?
The Metaverse is decentralized at its very core. No single individual, company, or entity owns the internet.
The Metaverse is touted to be the third iteration of the internet, or Web 3.0—a decentralized peer-to-peer network that relies on blockchain technology to maintain consensus without a central authority.
What Does Metaverse Mean for Crypto?
The Metaverse will take crypto to the next level. It will increase the adoption of cryptocurrencies by people, businesses, and governments.
It will also decentralize citizenship property ownership and revolutionize trade and industry as we know it now.
Also read: Is Cardano Metaverse?
Who Owns the Metaverse?
The Metaverse is decentralized. No single individual, business, government, or entity owns it.
What is the Difference Between the Metaverse and the Multiverse?
The multiverse and the Metaverse are unrelated.
The Metaverse is a virtual sphere that works as a collection of things on the internet. In contrast, the multiverse is a theory of astronomy explaining the existence of more than one universe.
What is the Gaming Metaverse?
The gaming metaverse brings gaming into an experience-rich world. Games and gaming platforms bring life-like experiences to gamers using avatars and other unique assets.
Gamers will also earn revenue from gaming and sell the items they make in the game for profit.
Besides that, Games will use Augmented Reality and Mixed Reality to ensure gamers experience the best of both the natural and digital worlds.
The Metaverse is a relatively new concept that will continue to develop over the coming days. As we learn more ourselves, we’ll be sure to keep you informed.