Summary

The Metaverse is a persistent online 3D universe that combines multiple different virtual spaces together. You can think of it as a future iteration of the Internet. Users in the Metaverse can work, meet, play games, and socialize with each other in these 3D spaces.

The Metaverse isn’t fully here yet, but some platforms are already incorporating Metaverse-like elements. Currently, video games offer the closest experience to the Metaverse. Developers are pushing the boundaries of gaming by hosting in-game events and creating virtual economies.

Although cryptocurrencies do not have to be integrated into the Metaverse, the two are very compatible. The combination of the two can create a digital economy that integrates different types of utility tokens and virtual collectibles (NFTs). The Metaverse can also benefit from the use of cryptocurrency wallets such as Trust Wallet and MetaMask. In addition, blockchain technology can provide an open, transparent, stable and reliable governance system.

Blockchain applications similar to the Metaverse have already been created, providing people with income to meet basic living needs. Axie Infinity is a "play and earn" game, where many users earn income by playing games. SecondLive and Decentraland also combine blockchain worlds with virtual reality applications.

Looking ahead, large technology giants are actively leading the trend. However, the decentralized nature of the blockchain industry allows ordinary users to participate in the development of the metaverse.

Introduction

The financial industry, virtual space, and the physical world are becoming increasingly connected. With the touch of a button, we can access almost any content or service we want to experience on the devices we use every day. The cryptocurrency ecosystem is no exception. Non-fungible tokens (NFTs), blockchain games, and cryptocurrency payments are no longer the exclusive domain of cryptocurrency geeks. As part of the developing metaverse, they are now within reach and open to everyone.

What is the definition of the metaverse?

The Metaverse is a concept of an online 3D virtual space that closely connects all aspects of a user's life. It connects multiple platforms, similar to the Internet where different websites can be accessed through a single browser.

This concept originally originated from Neal Stephenson's science fiction novel Snow Crash. Although it was once just fiction, it now seems that the concept of the metaverse is very likely to become a reality in the future.

The Metaverse is powered by augmented reality, with each user controlling a character or avatar. For example, you can participate in a mixed reality meeting using an Oculus VR headset in your virtual office. When you’re done with work, relax by playing a blockchain-based game, and then fully manage your cryptocurrency portfolio and finances in the Metaverse.

Existing virtual video game worlds already have some of the characteristics of the metaverse. Games like Second Life and Fortnite, or work social tools like Gather.town combine many elements of life into an online world. While these applications are not the metaverse, they have some similarities. The metaverse has not yet appeared.

In addition to games or social media, it will also integrate economics, digital identity, decentralized governance, and other applications. Even today, users creating and owning high-value items and currencies contribute to the development of an independent and unified metaverse. With all these functions, blockchain has the potential to empower this future technology.

Why are video games relevant to the Metaverse?

Video games focus on 3D virtual reality and can bring the closest experience to the metaverse at present. This is not just because video games use 3D special effects. Nowadays, the services and functions provided by video games have penetrated into other aspects of life. The video game "Roblox" even holds virtual events such as concerts and parties. Players no longer simply play games, they regard it as an activity in "cyberspace" and a part of life. For example, in the multiplayer game "Fortnite", 12.3 million players participated in Travis Scott's virtual music tour in the game.

How do cryptocurrencies fit into the Metaverse?

Games share some 3D aspects with the Metaverse, but they don’t cover everything the Metaverse needs. Cryptocurrencies can provide other important things needed, such as digital proof of ownership, value transfer, governance, and operability. But what do these actually mean?

If we want to work, socialize, and even buy virtual items in the Metaverse in the future, we naturally need a secure way to show ownership. We also want these items and funds to be able to be safely transferred within the Metaverse. Finally, if the Metaverse is going to play an important role in our lives, we certainly want to be able to participate in the decision-making of the Metaverse.

Some video games have already adopted some basic solutions, but many developers choose to use the more advantageous cryptocurrency and blockchain technology. Blockchain provides a transparent and decentralized way to deal with topics, while video game development is more centralized.

Blockchain developers are also influenced by the world of video games. "Gamification" is a common concept in decentralized finance (DeFi) and GameFi. In the future, the two fields seem to have enough similarities to deepen their integration. The key points of blockchain fitting the metaverse include:

1. Digital proof of ownership: With a wallet that has access to your private keys, you can instantly prove ownership of your activities or assets in the blockchain. For example, during work, you can show accurate transaction records in the blockchain to demonstrate accountability. Wallets are one of the safest and most reliable ways to establish digital identity and proof of ownership.

2. Digital Collection: Just like determining the owner of something, we can also prove the originality and uniqueness of the item. This is very important for the metaverse that hopes to integrate more real-world activities. With NFT, we can create unique objects that can never be completely copied or forged. Blockchain can also represent the ownership of physical items.

3. Value transfer: The Metaverse needs to transfer value through a secure method that users can trust. In-game currencies in multiplayer games are not as secure as cryptocurrencies in blockchains. If users spend a lot of time in the Metaverse, or even earn income, they will definitely need a reliable currency.

4. Governance: It is also crucial for users to control the rules of interaction with the Metaverse. In real life, we have voting rights in companies and can elect leaders and government officials. The Metaverse also needs to find a way to govern fairly, and blockchain is already a mature solution in this regard.

5. Accessibility Anyone around the world can create a wallet on a public blockchain. Unlike a bank account, you don’t need to pay anything or provide any details. This makes it one of the most convenient ways to manage your finances and digital identity online.

6. Interoperability: Blockchain technology continues to improve compatibility between different platforms. Projects such as Polkadot (DOT) and Avalanche (AVAX) allow the creation of custom blockchains that interact with each other. A single metaverse requires connecting multiple projects, and blockchain technology has already introduced a solution.

What is Metaverse Work?

As mentioned above, the Metaverse brings all aspects of life together in one place. While many people already work from home, in the Metaverse you can enter a 3D office and interact with your coworkers’ avatars. Your work may also be Metaverse-related, earning you income that you can use directly in the Metaverse. In fact, similar forms of work are already emerging.

Today, GameFi and the “play and earn” model are creating a stable source of income for players around the world. These online jobs are a great choice for future Metaverse solutions, and they show that people are willing to invest time in the virtual world, enjoy life, and earn income. “Play and earn” games like “Axie Infinity” and “Gods Unchained” don’t even have 3D worlds or virtual avatars. However, the principles they believe in are part of the Metaverse, creating a way to make money completely in the online world.

Metaverse Example

Although a single, interconnected metaverse has not yet arrived, we can experience many metaverse-like platforms and projects. They usually incorporate NFTs and other blockchain elements. Let’s look at the following three examples:

《SecondLive》

SecondLive is a 3D virtual environment where users can control avatars to socialize, learn, and work. The project has also launched an NFT marketplace for exchanging collectibles. In September 2020, SecondLive held the Binance Smart Chain Harvest Festival as part of its anniversary celebrations. The virtual expo showcased various projects in the Binance Smart Chain (BSC) ecosystem for users to explore and interact with.

《Axie Infinity》

Axie Infinity is a "play and earn" game that creates a stable income for players in developing countries. By purchasing or receiving three creatures called "Axies", players can harvest "Smooth Love Potion" (SLP) tokens. After selling them on the open market, players can earn about $200 to $1,000, depending on the depth of the game and the market price.

While Axie Infinity doesn’t offer a single 3D character or avatar, it does offer users a metaverse-like job opportunity. You may have heard of Filipinos using the game as a replacement for full-time jobs or social welfare, which has become a well-known anecdote.

Decentralized

Decentraland is an online digital world that combines social elements with cryptocurrencies, NFTs, and virtual real estate. In addition, players can play an active role in the governance of the platform. As in other blockchain games, NFTs represent collectibles. In the game, users can also purchase 16x16 NFT plots of LAND using the cryptocurrency MANA. All these features combine to create a complex cryptocurrency economy.

What is the future outlook for the Metaverse?

Facebook has the highest voice in creating a unified metaverse. The Diem stablecoin project launched by Facebook is of great significance to the crypto-powered metaverse. Mark Zuckerberg has made it clear that he plans to use the metaverse project to support remote work and improve the financial situation of people in developing countries. Facebook has social media, communication channels and cryptocurrency platforms, laying a solid foundation for multi-field integration. Large technology companies such as Microsoft, Apple and Google are also planning to build the metaverse.

When it comes to the crypto-powered metaverse, deep integration of NFT markets and 3D virtual worlds seems like the next step. NFT holders can already sell items acquired from multiple sources on marketplaces like OpenSea and BakerySwap, but there are no widely used 3D platforms yet. Blockchain developers could potentially develop popular applications like the metaverse at scale, with organically acquired users that even exceed those of the big tech giants.

Summarize

While there is still a long way to go before a separate, unified metaverse exists, we are already seeing the trends that are driving it. This seems like another great science fiction use case for the fusion of blockchain technology and cryptocurrency. Whether or not a metaverse can actually be realized is still unknown. However, we can experience metaverse-like projects now and continue to integrate blockchain into our daily lives.