The metaverse, blockchain, and cryptocurrency have all emerged as major trends in recent years. The digital landscape is increasingly evolving into a new era defined by decentralization.
It is the components of this “web3” landscape that are paving the way for the new era of metaverse experiences. After all, the metaverse isn’t just a single-brand environment or an augmented reality experience. It is a decentralized network of virtual worlds and communities that rely on the transparency and accessibility that blockchain technologies provide.
The “metaverse blockchain” represents one of the core components of the unique environment and economy that the metaverse promises to bring to the world.
Let’s take a look at how the “blockchain metaverse” is affecting the world as we know it.
The rise of the Metaverse, Blockchain and Web3
To understand the connection between metaverse, blockchain, cryptocurrency and other emerging concepts, we first need to take a closer look at the evolution of the internet.
At the beginning of the Internet revolution, Web 1.0 introduced us to sharing information online. It was an information highway of interconnected servers and computers based on centralized platforms.
Web 2.0 transformed the Internet into a more social experience. Network sites and blogs opened up new means of communication for digitally savvy consumers. However, centralization was still crucial to the online experience. Entities like Facebook and Google started taking ownership of content, assets and data.
Web 3.0 is the emerging “next generation” of the Internet. Designed to return ownership to content creators and consumers, Web 3.0 is based on decentralization. The blockchain is the technology that enables this decentralized experience. It provides transparency in ownership, transfer of assets and contractual obligations.
Web 3.0, or “Web3,” is also the foundation of the metaverse. The overall goal of the metaverse is to build a decentralized, accessible environment where people can interact, transact, and connect.
Defining the Metaverse Blockchain: What is the Blockchain?
So, how does the blockchain work and why is it so crucial to forming the “metaverse”? As a concept, blockchain was originally developed by W. Scott Stornetta and Stuart Haber in 1991. It was a tool for “time-stamping” documents with no central authority.
However, “blockchain” was not officially introduced to the rest of the world until 2008, when Bitcoin’s anonymous creator, Satoshi Nakamoto, introduced a new distributed ledger technology. This “blockchain” strategy powered the first cryptocurrency.
The blockchain became an extensive database spread across multiple nodes or connectors. This decentralized structure promised more security and transparency, with no single point of failure.
A core component of the blockchain is its ability to collect and share immutable data. Records on the blockchain can contain anything from transaction details to the time of a “block” change.
While blockchain technologies are often associated with cryptocurrencies, such as Bitcoin and Ethereum, their use cases extend beyond the financial sector. Blockchains can serve a range of industries by providing a tamper-resistant environment for data tracking.
Blockchains can be used for identity verification, contract creation, and even for tracking and controlling processes in a digital world.
Is the Metaverse built on Blockchain?
So, what is the metaverse blockchain? Is the metaverse built entirely on blockchain technology?
Not exactly, but blockchains do play a critical role in creating metaverse experiences. First, the “metaverse” structure depends on this digital environment and not on a single person.
The metaverse is not “owned by Meta” or other well-known innovators such as Decentraland. It is a decentralized environment where any person or company can build or explore virtual worlds. The blockchain supports this methodology.
Metaverse blockchain technology allows the metaverse to be an open space where people can move between virtual worlds and steal their belongings. For example, if you want to transfer an avatar from Microsoft Mesh to Facebook’s Horizon Worlds, the blockchain should allow you to verify your ownership of that digital identity.
Similarly, if you were to buy an NFT in the metaverse and want to take it to your home in “Decentraland”, the blockchain should allow for that too. Essentially, the idea of a metaverse blockchain is that as long as you can access your “wallet” and crypto or blockchain identity in a virtual world, you can access your assets.
Of course, the metaverse and the blockchain are still relatively nascent concepts. Standards are still being developed on how blockchain environments should be used within the metaverse.
Groups such as the Blockchain Association, XR Association and various governments have banded together to set standards, ethics and frameworks for this new world. But we are still in the early stages of discovering what is possible.
The connection between the Metaverse and Blockchain
The link between Metaverse and blockchain technology is much more complex than most people realize. Without blockchain technology, it would be difficult to create a truly inclusive metaverse environment. While many companies take different approaches to their metaverse creation strategy, most innovators’ goals are the same.
Metaverse developers are committed to building a decentralized network of digital worlds that anyone can access. These spaces connect users in all aspects of their lives, unlock new economies and develop thriving communities.
The metaverse blockchain serves the metaverse environment in a number of ways:
Creation of the Metaverse Economy
The blockchain is the core component of many cryptocurrency solutions. It enables the creation of a virtual economy, with different types of tokens, from NFTs to virtual coins. Each metaverse blockchain can support its own unique currency and economy.
The blockchain allows individuals and institutions to carry out instantly traceable transactions. This ensures secure purchases of everything from Metaverse land to avatar clothing. The metaverse even gives creators new ways to monetize their content and experience through blockchain-powered selling.
In some metaverse environments, users can sign up with digital cryptocurrency wallets based on the blockchain to earn NFTs, cryptocurrencies, and other digital assets. Players also have the freedom to transfer their digital assets to other platforms.
We have already seen examples of metaverse economies growing on the blockchain: Decentraland with its LAND tokens, Fortnite with its in-game transactions and even Roblox.
Ensure Metaverse safety and security
The safety of the metaverse is a common topic of discussion. In such a new, unique environment, we have yet to create specific laws and guidelines to protect each user. While a metaverse blockchain cannot eliminate all potential risks, it can provide some pillars of security.
The unhackable, immutable nature of the blockchain makes it easier to protect digital assets in a decentralized environment. Not only does the blockchain enable rapid confirmation of information; it also enables cryptographically safe and secure transactions.
The blockchain makes it easy to track actions and changes in a virtual world and potentially track the people or actors responsible for specific attacks. Blockchain technologies are already being used in various financial environments to improve the security of transactions.
In addition, metaverse blockchain technologies can help resolve IP fraud and plagiarism disputes. The blockchain can validate asset ownership and reduce IP theft.
Building metaverse landscapes
The metaverse blockchain also provides a foundation for building the landscapes we will traverse in the metaverse. When people buy “metaverse real estate,” they don’t buy land packs. They buy segments of a blockchain.
Platforms like Decentraland, The Sandbox and others facilitate this with virtual real estate in the Metaverse. By offering companies and individuals the ability to buy “space” in the metaverse, the blockchain opens the door to creating new worlds and experiences.
Companies can build all kinds of virtual experiences with these pieces of blockchain real estate. Individual consumers can even use their metaverse “home” as an environment for storing NFTs, assets and other digital content.
Preserve metaverse identities
Building on the metaverse blockchain’s ability to maintain security in the metaverse, it also provides an opportunity to protect user identities. Numerous metaverse platforms use blockchain technologies to authenticate user credentials when accessing critical infrastructure.
In some parts of the world, government organizations such as Dubai’s Ministry of Health and Prevention (MOHAP) and cities in South Korea and China have already used NFTs and the blockchain to maintain citizen records, access medical records, and secure offer services.
The metaverse blockchain can act as an incredible authentication and validation solution. This will be essential in the future as people turn to the metaverse for entertainment, education, and work.
In the future, people will be able to access their unique digital footprints with blockchain data linked to interoperable avatars. This becomes critical to creating a Metaverse for conducting real-world transactions.
Developing engaged metaverse communities
The blockchain even offers companies and institutions a new way to develop and connect virtual communities. Creators around the world are using blockchain technologies and vice versa to create their societies.
Many know the Bored Ape Yacht Club (BAYC) and other NFT collectives. These blockchain-based communities use decentralized assets and rewards to connect with their tribes. For example, the Dancing Seahorse DAO gives its NFT holders exclusive access to its nightclub franchise in several locations.
Even brands are taking advantage of the community-building opportunities offered by the blockchain and the metaverse. Coca-Cola, Adidas, and Nike have all invested in metaverse environments and blockchain-powered NFTs to help engage consumers.
This could lead to another revolution in how companies connect with their audiences in an environment where “social media networks” will give way to accessible, decentralized communities.
The Metaverse Blockchain: A Critical Part of the New World
Fundamentally, the “metaverse blockchain” will be a critical part of our future. Blockchain technologies enable companies and creators to build safe, secure and accessible virtual environments.
Blockchain technologies allow metaverse creators to facilitate more than just cryptocurrency transactions. They can help their audiences build truly authentic digital identities, perfect for traversing the digital worlds of tomorrow.
The blockchain will be critical in shaping a future where no company or entity controls the metaverse. It fulfills the promise of “mobility” in the metaverse by enabling the transfer of assets. It also introduces the foundations of a new economy and paves the way for safe interactions.