DeutschThe Metaverse has become a term that is gaining increasing popularity and inspiring the imagination of people all over the world. But what is really behind this concept? And what does the Metaverse have to do with the Blockchain?
The Metaverse is more than just a technological trend. It is a vision that wants to reinvent the way we experience the Internet and the digital world. With the virtual universe Metaverse, fascinating possibilities of interaction, creativity and communal experience unfold. It promises to blur the boundaries between reality and the virtual world by immersing us in an immersive and interactive online environment.
In this article, we take a closer look at what the Metaverse actually is, how it is developing and what potential it holds for the future. We will explain to you how the technology behind the idea works, what it is already being used for and how it is closely linked to blockchain technology and cryptocurrencies.
What is the Metaverse? Definition Explanation
The Metaverse is a virtual universe that offers an immersive and connected digital reality. When immersed in the experience, you are not just a passive observer, but feel as if you are actually in the virtual world. The Metaverse goes beyond previous virtual reality experiences with VR glasses and creates platforms, enables social interactions and different digital worlds that can be experienced.
Users each create an avatar, which represents them in the virtual world. With it, it is possible to move in different areas of the Metaverse and undertake real-time interactions. The basic idea of the Metaverse is to create a seamless connection between the physical and the digital world.
Companies such as Meta (formerly Facebook) or Google have invested heavily in development in recent years. Among other things, standards and different platforms are to be created to make the Metaverse a reality. The Metaverse promises to change the way we interact, work, learn and play with each other. Online shopping, entertainment, social connections, in short, everything we do should be possible on a virtual and digital level.
Even if the name suggests it, Meta is not the founder of the Metaverse. Rather, it is a concept that is being further developed and created by a variety of actors.
With the ongoing development, however, we as a society are also faced with some questions that still need to be resolved. Critics of the Metaverse express concerns about dealing with data protection and privacy. The digital divide and the risk of social isolation as well as the potential for addiction are also topics that need to be discussed.
The Technology behind the Metaverse: how Does the Digital World Work?
The idea of the Metaverse works through the combination of several different technologies. So let’s take a look at what each of them contributes to the overall concept.
VR headsets (Virtual Reality) allow users to visually and sometimes audibly immerse themselves in virtual worlds. This creates a 3D environment experience. AR headsets (Augmented Reality) are similar to VR headsets. But instead of diving into a completely digital world, AR expands the real environment with virtual elements. This creates a kind of overlap between the virtual, digital and real world.
Sensors and the Internet of Things (IoT) help to collect data from the real world and create a dynamic and rich environment in the Metaverse. Computing-intensive tasks such as the generation of 3D graphics or the processing of large amounts of data are often carried out in the cloud. Cloud computing is therefore crucial to create a smooth experience.
The blockchain technology forms the technical backbone for many components of the Metaverse. For example, with the smart contracts. These enable the secure exchange of virtual goods and services. Cryptocurrencies are used as a means of payment, for the representation of digital assets (NFT), as an in-game currency, as a basis for DeFi contracts (decentralised Finance) or also for social interactions and rewards.
Last but not least, the Metaverse thrives on social interaction. Platforms such as Decentraland allow users to interact with each other, share content and have shared experiences. Artificial intelligence (AI) is used to create so-called NPCs (non-playable characters) that operate in the virtual world. In addition, AI is used to create personalized content and recommendations based on user data.
Advantages of the Metaverse for Cryptocurrencies
Cryptocurrencies in the Metaverse enables the tokenization of assets. For example, with an NFT, which proves the real ownership of a virtual land, object or even a character. These assets can then also be traded outside the Metaverse.
Playing play-to-earn games, creating content or trading digital goods creates new opportunities for crypto investors.
Furthermore, the Metaverse is mostly based on blockchain technology. This means that cryptocurrencies can operate in a decentralized environment and no central authority is necessary for the validation and processing of transactions.
Smart Contracts offer a form of automation in the Metaverse. The contracts make it possible to process transactions and business rules without human intervention. The Metaverse creates an almost ideal environment for this type of transaction, as it is decentralized and interoperable.
Use Cases of the Metaverse in the Crypto World
There are already many use cases of the Metaverses in the crypto world. The Sandbox, for example, is a Metaverse game in which you interact with a character similar to a Minecraft character. You can explore a wide variety of areas on a huge mag. For zombie game fans, for example, there is the region The Walking Dead, named and inspired by the comic book of the same name.
In addition to the crypto gaming industry, the Metaverse also offers new opportunities for the crypto real estate industry. For example, users can buy virtual properties in the digital world of the Decentraland project. They can then manage or build on them. For example, there is a virtual Nike store where you can view and buy products. Each of the 90601 parcels in total has a size of 16 by 16 meters (256 square meters) and is represented by a Non Fungible ERC-721 Token (NFT). The NFT can be used to trade properties.
Furthermore, art and culture have also found new ways to present themselves digitally. Virtual galleries, exhibitions and events are already a reality in the Metaverse. In addition, this form of exhibition offers artists and viewers a new way to experience art interactively. For example, in the project “The World’s First Digital Art Museum” by teamLab, there is art that reacts in real time to the movements of visitors, making the connection between art and viewer experience in a new way.
The 3 Best Metaverse Coins
Which is the best Metaverse coin can be viewed very subjectively. In the following, we will show you the three most successful projects by market capitalization: Internet Computer, Axie Infinity and Stacks.
Internet Computer (ICP)
The Internet Computer was launched by the non-profit and scientific research organization DFINITY Foundation, which is based in Zurich. With a market capitalization of over USD 1.3 billion, ICT is by far the most valuable Metaverse coin.
This is a service for crowd computing. By bundling the computing power of all nodes in the blockchain network, a so-called Internet Computer is to be created. This enables a fast, secure and scalable cloud platform on which applications can be hosted and code can be installed directly without experiencing bottlenecks, as is currently the case with Bitcoin or Ethereum.
Axie Infinity (AXS)
Axie Infinity is an online game that is built on blockchain technology. The game developed by Sky Mavis uses Non Fungible Tokens (NFTs) to represent so-called Axies (virtual creatures). These can be bought, exchanged and traded by users. With the help of the NFT, which are unique and unique, the ownership of the virtual creature can be proven. As part of the game, you can have your Axies compete against the Axies of other players.
Stacks (STX)
Stacks is a Layer 1 blockchain solution that aims to introduce smart contracts and DApps (decentralized applications) on Bitcoin (BTC). Smart contracts are transferred to Bitcoin without affecting the security or stability that distinguish Bitcoin. The DApps are open and modular. This means that developers can build on apps and thus develop applications that would otherwise not be possible.
STX is therefore trying to expand the Bitcoin blockchain with functions without having to carry out a fork (separation from a blockchain) or change the original blockchain Bitcoin.
Opportunities and Challenges for Cryptocurrencies in the Metaverse
The Metaverse offers a variety of opportunities for crypto investors, but also presents us as a society with at least as many challenges.
By purchasing Metaverse tokens, you can invest directly in a project. The value of this token can increase if the demand for the Metaverse and the corresponding project increases.
Similar to the real estate market, investors can buy and own virtual properties in the Metaverse. Here, too, investors can benefit if the demand for the virtual good increases. It is also possible to create and sell new goods such as virtual works of art in the Metaverse. This also includes the providers of Metaverse platforms and services.
The fact that the Metaverse will grow is foreseeable in view of the investment sums. Nevertheless, there remains the risk that the services and goods offered will not be in demand to the desired extent or that interest in the Metaverse will remain smaller than expected.
The Metaverse is interoperable and open according to the term. This also means that users can operate across borders. Which in turn presents the concept with several challenges. Among other things, the question of regulation and compliance for crypto, which are used in the Metaverse, must be clarified. At the moment, there are only a few uniform standards and each country has further its own regulations.
Topics that also need to be discussed and clarified are the handling of personal data that is collected. But also the safeguarding of intellectual property, liability, protection of minors, competition law, tax regulation of cryptocurrencies in the Metaverse or also international cooperation must be regulated.
What is the Metaverse – Conclusion
The Metaverse is an emerging concept that redefines the digital world. It promises a connected online experience and allows users to immerse themselves in a virtual reality that goes beyond simple VR experiences. You get the feeling of not being a passive observer of something, but actually being in the digital environment. Social interactions as well as experiencing and designing digital worlds are made possible. Large companies are investing in the development of the Metaverse because they see the potential to shift our interactions, work, education and leisure to a virtual and digital level.
The technology of the Metaverse is based on VR and AR headsets, sensors, IoT, cloud computing and the blockchain. These technologies make it possible to create immersive environments, tokenize virtual goods and use smart contracts for automated transactions. Cryptocurrencies play a crucial role as means of payment, representation of digital assets and in-game currency.
The Metaverse is used in crypto gaming, real estate, art and culture. It offers investors new opportunities, but also poses challenges in terms of regulation, data protection and international cooperation. Despite these challenges, the Metaverse has the potential to fundamentally change the way we experience the digital world. However, it is important to carefully shape these changes and take into account the social, legal and ethical aspects.
Frequently Asked Questions about the Metaverse
- How Can I Invest in Metaverse Coins?
Crypto metaverse projects each have their own coin or token. You can find Metaverse coins and tokens like MANA, SAND, AXS, etc. on the common crypto exchanges. There you can buy and trade them. Always remember to research the project and its usefulness before making any investment and only invest as much as you are willing to lose.
- How Can I Use My Cryptocurrencies in the Metaverse?
The ways you can use your cryptocurrency in the Metaverse are diverse and depend on the specific platform or service offered. Examples include buying virtual land or real estate, acquiring digital art or virtual items for your character in a game, and participating in virtual concerts, events, or parties.
- Which Crypto Projects are Already Active in the Metaverse?
Among the multitude of projects already launched, the largest include Decentraland (MANA), The Sandbox (SAND), Axie Infinity (AXS), and ENJ (Enjin Coin).
