Since blockchain came into existence, the innovation and evolution associated with technology have been restless.
Many concepts that were once mere theories have popped up on the surface. One of them is the hyper-realistic virtual realm, called metaverse technology.
Even a couple of years back, people thought blockchain was all about cryptocurrencies. However, the way blockchain penetrates finance and banking, it is clear that blockchain never aims to remain confined within the crypto world.
As a matter of fact, the global blockchain market will hit 67.4 billion by 2026. (Markets and Markets)
As demand for reputed blockchain development company is rising, it is clear that the blockchain market will have an immensely bright future.
It is the perfect and the most responsive technology to the ever-expanding digital landscape. The emergence of metaverse technology is a confirmation of that.
And the way the metaverse market is growing, the growth of the blockchain market is a sure thing.
But what is the relationship between blockchain and metaverse? Why should a metaverse development company know about blockchain?
Blockchain’s non-fungible tokens or NFTs and cryptocurrencies create a decentralized ecosystem for digital assets’ development, ownership, and monetization. Since the metaverse comprises digital assets, and due to centralized data storage limitations, the metaverse is sketchy without blockchain. Blockchain’s decentralized nature distinguishes metaverse from conventional internet abilities. The blockchain-based metaverse offers access to any digital location without the involvement of a centralized entity.
Metaverse In Brief
At first glance, people may think that metaverse technology is a bunch of interlinked virtual spaces accessed through Virtual Reality-supporting devices.
This primary thought is correct, indeed. However, if we see things from a different angle, like the metaverse pillars, blockchain and other advanced technologies besides the internet exist.
Web 1.0 was the super highway to explore information across Yahoo, Google, Etc. Then came Web 2.0, providing a solid ground for social networking sites, blogging, and user data monetization.
And now, we are standing on the verge of Web 3.0, offering a robust foundation for advanced technologies like the metaverse.
So, the metaverse is a blissful combination of Augmented Reality, Virtual Reality, Blockchain, NFT, Artificial Intelligence, IoT, and many other advanced technologies.
Metaverse will consist of blockchain-enabled decentralized applications supporting an economy of user-owned crypto assets and data.
• In the metaverse, the users can immerse themselves in a realistic virtual space.
• In the virtual space, users can do almost anything they do in the physical world.
Metaverse activities include meeting and communicating with people, playing games, trading real estate, purchasing digital art, traveling, visiting virtual college/university campuses, Etc.
Technocrats believe blockchain-powered metaverse will expose businesses, educational institutions, and artists to an engaging and virtual world. Metaverse technology holds the potential to change and revolutionize everyone involved interacts.
Blockchain Technology in Brief
• The Blockchain is a distributed ledger regulated through a network of independent computers.
• A blockchain is a growing list of records, called blocks, linked with each other using cryptography.
• Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data.
• By design, a blockchain is resistant to modification of the data.
A blockchain gets typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks.
Once recorded, nobody can alter the data in any given block retroactively without altering all subsequent blocks, which requires the collaboration of the network majority.
• Hence, blockchain eliminates all the potential issues of fraudulent activities.
• Businesses can achieve decentralized consensus with a blockchain.
It makes blockchains suitable for recording events, medical records, identity management, transaction processing, and proving compliance. Blockchain-driven metaverse also makes it fully independent and decentralized, allowing all users to participate, connect and contribute.
How is Blockchain in a Deep Relation with Metaverse Technology?
Metaverse is a crucial and innovative part of Web 3.0, and Web 3.0 is all about decentralization. Hence, a decentralized platform is one of the prime foundations of metaverse projects. Blockchain is the dominant technology that can bring decentralization into metaverse projects in the following ways:
Smart Contracts
• NFTs, or Non-Fungible Tokens, have become integral to many metaverse projects.
• NFTs offer immutable digital ownership of digital assets on the blockchain.
Integrating NFTs into metaverse technology-driven projects facilitates digital product trading in the metaverse world. In addition, NFTs can also represent the unique 3D digital avatars of people in the metaverse. Finally, blockchain-driven NFTs can create a decentralized economy within the metaverse worlds.
Cryptos Assets
• Metaverse is a simulation of the real-world environment.
• It allows users to engage in various actions within the virtual world environment.
• These actions are like socializing, entertaining, and trading activities.
• Users can do almost all activities similar to real-world activities.
• But, users require specific common currencies to facilitate these activities virtually.
Metaverse users need to leverage crypto assets and cryptocurrencies to accomplish several actions like purchasing and selling digital items, playing games, Etc. And what is the heart of cryptocurrencies and crypto assets? It is no other technology than blockchain.
Final Thoughts
So, is a metaverse project well off without a blockchain development company? Certainly not.
The interconnection between blockchain and metaverse technology is undeniable. Blockchain is an integral part of the metaverse world.
Blockchain dominance is everywhere, from protecting and validating digital assets and identities to facilitating digital asset trading.
Whether it is a powerful virtual gaming platform or an educational metaverse platform, the blockchain always remains a pivotal component of the metaverse.