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What is a metaverse and what does it matter for the cryptocurrency market?

2y ago
bullish:

5

bearish:

1

Metaverse has become fairly popular recently, around 2021. Mainly thanks to Facebook, which changed the name of his company Meta to emphasize the company’s commitment to this new trend. But what is metaverse? And what is the significance for the cryptocurrency market? Metaverse is a new technology and at the same time a virtual reality in which the user functions thanks to his avatar. Today, the metaverse is also a digital economy with an important share of the NFT. Cryptocurrencies can act as currencies in the metaverse.

Metaverse, or what?
Metaverse is — according to Wikipedia — a network of 3D virtual worlds focused on a social connection. In futurism and science fiction, it is often described as a hypothetical new version of the Internet as one universal virtual world. In futurism and science fiction, the metaverse is a hypothetical iteration of the Internet as a single, universal and immersive virtual world that is facilitated by the use of virtual reality and augmented reality headsets.

The term “metaverse” is derived from the science fiction novel “Snow Crash” from 1992. It is about combining the words “meta” and “universe”. Various metavers have been developed for common use (Second Life is an example). To put it more clearly, metaverse is a new version of virtual reality in which the user functions and has his avatar — that is, a virtual character that represents him in these digital realities.

Metaverse in a new version
Today, however, metaverse is something more. The topic was expanded to include the digital economy, in which, for example, cryptocurrencies and NFT play an important role. The point is that while previously metaverse was simply associated with a computer game, today the topic is much more serious and resembles the most daring ideas of science fiction authors. Digital universes resemble our worlds more and more, due to the adoption of similar economic and legal mechanisms in them.

What is it actually about?
The fact that, just like in the real world, you must have proof that, for example, a given property or other types of valuable assets belong to you, in the metaverse this evidence is NFT. In other words, a similar legal mechanism has been introduced into the metaverse that has been functioning in our reality for centuries — certificates of ownership. In addition, there are cryptocurrencies, which can, after all, act as currencies in digital worlds. It would even be groundbreaking for the bitcoin and altcoin market, the utility of which would reach a new level.

All currencies are based on blockchain.
What is blockchain and how can it be important from the economic point of view?
Blockchain, or blockchain, is a technology that stores and transmits information about transactions concluded on the Internet. This information is arranged in the form of consecutive data blocks. One block contains information about a certain number of transactions, then, after it is saturated, another block of data is created, followed by the next and the next, creating a kind of chain. Information about various types of transactions, e.g. trading, buying or selling currencies, including cryptocurrencies, can be sent there.

The main essence of blockchain operation is to maintain a joint and collective transaction ledger in a digital form, distributed over the network, in the same copies. This technology is based on a peer-to-peer network without central computers, management and transaction verification systems. Each computer connected to the network can take part in sending and authenticating transactions. Thanks to complex cryptographic tools, this book is fully secured against unauthorized access, and at the same time it is open to everyone. The user can view and verify the entire history of transactions from the very beginning of the blockchain’s existence up to the present day.

This is probably fully understood by Yuga Labsma, the creators of the top NFT Bored Ape Yacht Club collection. The company is getting ready to create Otherside — its own metaverse with its own currency. The latter will become apecoin (APE), a token that you can invest in now.

The example of the Bored Ape Yacht Club is interesting because the concept develops in an extremely creative way. After the metaverse came into being, this project may even have its own… rock stars quite quickly. We are talking about the KINGSHIP band, which was created on the basis of the aforementioned “monkey” NFT collection. Now the group has to “write” their own music, perform in metaverse and release a lot of collector’s NFT items. Its creators draw inspiration from Gorillaz, the cartoon band of Damon Albarn. Behind the project, its record label Universal, and the owner of the NFT, which represent monkey musicians, is investor Jimmy “j1mmy” McNelis.

The future of the market
While the concept of the metaverse evokes conflicting emotions, it can be assumed that it will develop in the future in a way that could be hugely beneficial to fans of NFT and digital currencies. It is not without reason that the largest brands in the world are already investing, for example, in plots in the metaverse (for example, McDonald’s did so, but also HSBC — more on this topic here). They probably sense the trend of the development of the digital economy, which in a few years’ time may become an inseparable part of our reality.

Increasingly frequent investments
Although the topic of metaverse is still young, more and more people are interested in technology. According to Newzoo, in 2022 more and more companies will want to invest in meta projects in the hope that this risk will pay off. Whole acquisitions of metaverse-related companies by giants are also expected.

NFT manufacturers will become luxury brands
Some NFT series are becoming a true Holy Grail among collectors. Behind them are large companies that may soon be hailed as a “premium brand” in the world of virtual tokens. Celebrities have a big influence on it. An example is the “Bored Ape Club” collection, these are tokens popular among celebrities. The holders of these tokens engage in their promotion. As a result, more and more people learn about it, and the producer responsible for the tokens becomes an exclusive brand on the market.

Clothing brands will become the first beneficiaries of the Metaverse
In this new virtual world of metaverse, our appearance will be identified with our digital avatar. The Newzoo portal refers to Balenciaga, which by joining forces with Fortnite, has created a collection with available physical clothes and skins available in the game. The full potential of this collaboration can be used in the metaverse environment. With its help, Balenciaga can reach completely new audiences. This opportunity was previously noticed by Nike and Adidas, which have already established cooperation with NFT producers.

Virtual real estate
Virtual land will enable companies to build interactive experiences in the metaverse. Consumers will be able to experience virtual purchases in digital stores such as Decentraland and The Sandbox. Interestingly, digital real estate also has to be… purchased. And there are even portals selling the area where a virtual facility will be built. Sounds absurd? Property developer Republic Realm has bought a plot of land in The Sandbox for $ 4.3 million. They want to build a virtual shopping center called Metajuku there.

Slowly getting used to the reality of the players
Titles like Axie Infinity have catalyzed a new wave of game development. Despite the fact that players are rather reluctant as to the direction in which the industry is taking, even the largest producers are already introducing blockchain technologies into their productions. EA’s CEO Andrew Wilson has even stated that the NFT will play an important role in gaming in the near future. Increasingly frequent experiments, which will blur the boundaries between blockhain and traditional games, may lead the creators to finally find a golden mean.


What is a metaverse and what does it matter for the cryptocurrency market? was originally published in Bitcoin Vault BTCV on Medium, where people are continuing the conversation by highlighting and responding to this story.

2y ago
bullish:

5

bearish:

1

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