The three hottest technologies and probably the areas of colossal investment potential, i.e., Metaverse, NFTs, and blockchain, promise to have a life-changing impact on the world.
In fact, tech giants including Microsoft, Google, Facebook, and others are already betting on these futuristic technologies.
Evolving technology calls for bridging the gap between the real and the virtual world, allowing revolutionary trends like web 3 and Metaverse to take over space. While these technologies are far-reaching, blockchain, cryptocurrencies, and NFTs undeniably enable them to realize their full potential.
This article will talk about the correlation between Metaverse, NFTs, and blockchain but first, let’s talk about them individually.
More than a technology, Metaverse can be cited as a way to combine already existing technologies, forming a “digital space.” It allows simulation of the real world, permitting people to do virtually anything with enormous potential.
Metaverse is a shared virtual space, i.e., hyper-realistic, interactive, and immersive due to augmented and virtual reality.
Metaverse entities are Avatars. Users interact with the digital space through avatars that act as a user identity.
Non-fungible tokens are one-of-a-kind cryptographic assets based on the blockchain network. These are digital collectible artwork signatures or certificates for paintings, music, graphics, games, etc.
NFTs provide authenticity to digital artwork, similar to IPR in the brick-and-mortar world.
Blockchain is a distributed, decentralized ledger shared amongst a number of systems called nodes. Blockchain is deployed for maintaining a secure record of transactions accessible to all its users. It is immutable; once you record a transaction on the ledger, it cannot be changed or removed.
Although cryptocurrencies created a buzz around blockchain, it has use cases in almost every sphere of life, especially after the development of smart contracts.
NFTs a key to Metaverse
Non-fungible tokens, providing digital records of ownership stored on the blockchain, will be the backbone of the metaverse economy. It allows for the authentication of possessions, property, and even identity. NFTs in the Metaverse can be considered analogous to real-world entities.
NFTs provide a fair and transparent digital economy, providing a next-generation social experience with virtual assets. In fact, they are reasons for users to have complete control over their digital assets.
Each NFT is protected by a cryptographic key that can neither be deleted, copied, nor destroyed. It enables the robust and decentralized verification of one’s virtual identity required for digital assets to thrive and interact in the Metaverse. In fact, every metaverse project has a component of NFT attached to it.
Why is blockchain necessary in the Metaverse?
Blockchain provides an appropriate solution for the metaverse’s governance, accessibility, and interoperability.
Evidently, present metaverse platforms like Decentraland, Sandbox, Axie Infinity, and others accept Ethereum’s crypto tokens to buy and sell digital assets.
Blockchain not only enables fast information confirmation but also enables cryptographically secure and protected transactions. Crypto assets and Blockchain are critical components of how virtual reality will be deployed.
Cryptos are Metaverse currency.
Cryptos are metaverse currency, with every protocol having its native coin. Since, with the Metaverse, you can live a virtual life, accessing assets in space needs money, and cryptos play that role.
Whether buying virtual land, entering a gaming area, buying avatar accessories, or more, cryptos connect the virtual economy to the real world.
Additionally, Investors can earn by selling cryptos and NFTs directly to buyers via exchanges, adding an extra layer of security.
Many businesses are already experimenting in the digital world, even though metaverses are still in their infancy. The metaverse offers enormous potential for cryptocurrencies and NFTs. Possibly changing the way people socialize, go shopping, study, interact with clients, learn, and obviously trade digital assets. As the metaverse’s medium of exchange, cryptocurrency is becoming more mainstream in terms of utility and adoption.
And since blockchain is the entry point to the metaverse in most cases, familiarity with smart contracts and their vulnerabilities is essential. If you plan to delve into the metaverse via a smart contract, it is vital to make them bug-free. To ensure your smart contracts are free from errors, smart contracts audit is a necessary step to be taken before deploying it on the mainnet.