If you have been paying the slightest bit of attention to news from the technology world, you would have inevitably heard of the Metaverse. The Metaverse, as a concept, has been around since 1992 when Neal Stephenson published his novel Snow Crash. The novel takes place against the backdrop of a world where the economy has collapsed. While, thankfully, that aspect hasn’t come true, the virtual world that it described is very close to becoming a reality.
In Stephenson’s fictional world, there exists a futuristic technology through which users can enter a world that’s completely digital. All by donning a pair of goggles. To anyone who has seen or played virtual reality games, this concept is not all that foreign. This technology has been around for a while now. But the metaverse is so much more than a glorified VR game. And as of now, it does not really exist, although its building blocks do.
However, when it does emerge, it is poised to be used for a whole lot more than gaming. You will be able to buy and sell assets, interact with your friends, attend conferences and concerts, go to work, study, and even buy land. In fact, land in the Metaverse has already raked in nearly $2 billion dollars in the past year. With Web 3 catapulting the Metaverse to the fore, this parallel virtual world may be closer than we think. But how exactly does it work? Read on to find out.
Explaining the Metaverse
Oscar Wilde once said, “Life imitates art far more than art imitates life.” This certainly seems to be the case for the Metaverse. The projected Metaverse is astonishingly similar to how Stephenson described it. However, entering it is not as simple as wearing a headset. The simplest explanation is often the most effective one. The Metaverse is an immersive 3D network that seamlessly integrates augmented and virtual realities to connect the world. It will also make use of blockchain technology, making it decentralized. You can enter the Metaverse with a digital avatar and navigate using the same.
Despite it being a relatively new concept, several big names in the tech world are in the race to make it a reality. Perhaps the most well-known brand in the race to the Metaverse is, well, Meta (formerly Facebook). Apart from Meta, companies like Apple, Microsoft, and Google are treading the waters of the Metaverse.
Powering the Metaverse
Creating a world that is as all-encompassing as the Metaverse is no mean feat. There are several components that go into building it from the ground up. And most important among them is blockchain technology. Here, we dive into blockchain technology and the other elements that go into constructing the Metaverse.
Blockchain Technology:
Simply put, a blockchain is a decentralized digital ledger. Each network is secured by a network of nodes that each contain a copy of the same ledger of transactions. This way, data is distributed across networks, making it very hard to attack. Although fraud is always possible, blockchain technology makes it simple to track the culprit.
Crypto Mining:
Since there is no single authority in a blockchain, participants often take responsibility for validating transactions using either a proof-of-work (PoW) or a proof-of-stake (PoS) mechanism. However, the former requires the use of high-powered machines to solve complex mathematical problems, making it environmentally unsustainable. The latter is poised to make blockchain technology much more eco-friendly. Using these mechanisms, participants earn rewards for their validation, incentivizing legitimacy.
Decentralized Finance (DeFi):
DeFi is an emerging technology that uses permissionless blockchain protocols to provide an alternative to traditional transactions. This way, transactions can be conducted between the two parties without the involvement of an intermediary. Yield farming, which lets you gain the most return on your investment, is a key feature of DeFi. DeFi is particularly popular in play-to-earn gaming.
Token Economy:
With the use of DeFi, the possibility of a token economy emerges. This is especially useful for artists, and other content creators as this lets them resonate more deeply with their fans. This is also prominent in Metaverse gaming as it promotes increased participation by awarding incentives.
Non-Fungible Tokens:
Another crucial feature of the Metaverse is its use of NFTs. These tokens essentially represent ownership of a digital asset, and are completely unique and immutable. As of now, NFTs are finding tremendous application in NFT Play to earn gaming as one-of-a-kind assets are often in demand. However, NFTs are already being used in several sectors, from art to real estate.
Blockchain Gaming:
This new development is quickly revolutionizing the gaming industry. The transparency provided by the blockchain makes it possible to secure transactions and verify asset scarcity. Through this kind of gaming, players can complete quests to earn rewards that can be exchanged for upgrades or even fiat currency. They may also have the option of selling their assets.
Real Estate:
A bit of irony, we know! But virtual land is fast becoming a hot topic in the Metaverse. You can easily buy land within a game. Furthermore, several landowners in the Metaverse are already conducting events there. We can only imagine how future house parties might be!
Social Media:
Social media is already a ubiquitous phenomenon. Throw it into the Metaverse mix and watch it gain another dimension. With decentralized social media, as will be the case in the Metaverse, users can connect with their friends without compromising on their data privacy. And, of course, they can always participate in token economies and support their favorite artists.
Concluding Thoughts
With the Metaverse being as new to the world as it is, it is understandable how confusing it can be. But really, it isn’t quite as complicated as it sounds. However, for all the hype surrounding it, creating a perfect Metaverse with interoperable platforms is more than a little way away. But several individual components of the Metaverse already exist and are flourishing. Ultimately, we will only know what the Metaverse looks like when we see it! But one thing’s for sure… It’s absolutely going to be worth the wait!
