Abstract

The Metaverse is a permanent online 3D universe that combines a variety of different virtual spaces. You can think of it as a future iteration of the internet. Users in the metaverse can work, meet, play and socialize together in these 3D spaces.

The Metaverse has not yet fully emerged, but some platforms have incorporated elements similar to the Metaverse. Currently, video games offer the closest experience to the Metaverse. Developers are pushing the boundaries of gaming by hosting in-game events and creating virtual economies.

While cryptocurrencies don’t necessarily fit into the Metaverse, the two fit in perfectly. The combination of the two can create a digital economy that integrates different types of utility tokens and virtual collectibles (NFT). The Metaverse is also able to benefit from the use of cryptocurrency wallets such as Trust Wallet and MetaMask. In addition, blockchain technology can provide an open, transparent, stable and reliable governance system.

Blockchain applications similar to Metaverse have been launched, bringing people income to meet their basic living needs. "Axie Infinity" is a "play and earn" game, and many users earn income by playing the game. “SecondLive” and “Decentraland” also combine the blockchain world with virtual reality applications.

Looking to the future, large technology giants are actively leading the trend. However, the decentralized nature of the blockchain industry allows ordinary users to participate in the development of the Metaverse.

Introduction

The financial industry, virtual space and the physical world are increasingly connected. On the devices we use every day, we can access almost any content or service we want to experience at the touch of a button. The cryptocurrency ecosystem is no exception. Non-fungible tokens (NFTs), blockchain games, and cryptocurrency payments are no longer the exclusive domain of cryptocurrency geeks. As part of the developing Metaverse, they are now within reach and open to all.

What is the definition of the Metaverse?

The Metaverse is an online 3D virtual space concept that closely connects all aspects of users’ lives. It connects multiple platforms, similar to the Internet where different websites can be accessed through a single browser.

This concept originally originated from Neil Stephenson's science fiction novel "Snow Crash". Although it was once just fiction, it now seems that the concept of the Metaverse is very likely to become a reality in the future.

The Metaverse is driven by augmented reality, with each user controlling a character or avatar. For example, you can use an Oculus VR headset to participate in mixed reality meetings in a virtual office. When you're done working, relax and play blockchain-based games, then fully manage your cryptocurrency portfolio and finances in the Metaverse.

The existing virtual video game world already reflects some of the characteristics of the Metaverse. Games such as "Second Life" and "Fortnite", or work social tools such as Gather.town, integrate multiple elements of life into the online world. While these applications are not the Metaverse, there are some similarities. Currently, the Metaverse has not yet come out.

In addition to gaming or social media, it will also integrate economics, digital identity, decentralized governance and other applications. Even today, the creation and ownership of high-value items and currencies by users contributes to the development of an independent and unified metaverse. With all these capabilities, blockchain has the potential to empower this future technology.

Why are video games related to the Metaverse?

Video games focus on 3D virtual reality, which can bring the experience closest to the metaverse. This isn't just because video games use 3D special effects. Today, the services and functions provided by video games have penetrated into other aspects of life. The video game Roblox has even hosted virtual events such as concerts and parties. Players no longer simply play games, they view them as activities in "cyberspace" and a part of life. For example, in the multiplayer game Fortnite, 12.3 million players participated in Travis Scott’s virtual music tour within the game.

How do cryptocurrencies fit into the Metaverse?

The game has common ground in 3D with the Metaverse, but it doesn't cover everything the Metaverse needs. Cryptocurrencies can provide other important things needed, such as digital proof of ownership, transfer of value, governance, and operability. But what do these actually mean?

If we want to work, socialize, or even purchase virtual items in the metaverse in the future, we naturally need a secure way to demonstrate ownership. We also want these items and funds to be safely transferred within the Metaverse. Finally, if the Metaverse is going to play an important role in our lives, we certainly want to be able to participate in its decisions.

Some video games already use some basic solutions, but many developers choose to use more advantageous cryptocurrencies and blockchain technology. Blockchain provides a transparent way to deal with decentralized topics. , while video game development is more centralized.

Blockchain developers have also been influenced by the world of video games. "Gamification" is a common concept in decentralized finance (DeFi) and GameFi. In the future, it seems that the two major fields will have enough similarities to deepen their integration with each other. The key points for blockchain to fit into the Metaverse include:

1. Proof of digital ownership: Having a wallet with access to the private key can immediately prove that you are responsible for the data in the blockchain. Ownership of activities or assets. For example, while working, you can demonstrate accountability by showing precise transaction records in the blockchain. Wallets are one of the safest and most reliable ways to establish digital identity and proof of ownership.

2. Digital Collection: Just like determining the owner of something, we can also prove the originality and uniqueness of the item. This is important for metaverses looking to incorporate more real-life activities. With NFTs, we can create objects that are unique and can never be completely copied or counterfeited. Blockchain can also represent ownership of physical items.

3. Value transfer: The Metaverse needs to transfer value through a secure method trusted by users. In-game currencies in multiplayer games are not as secure as cryptocurrencies on the blockchain. If users are to spend a lot of time in the Metaverse, or even earn money, they will need a reliable currency.

4. Governance: It is also crucial for users to control the rules of interaction with the Metaverse. In real life, we have voting rights in companies and can elect leaders and government officials. The Metaverse also needs to find ways to govern fairly, and blockchain is already a mature solution in this regard.

5.: Barrier-free operationAnyone around the world can create a wallet on a public blockchain. Unlike a bank account, you don't need to make any payments or provide any details. This makes it one of the most convenient ways to manage your finances and digital identity online.

6. Interoperability: Blockchain technology continues to improve compatibility between different platforms. Projects such as Polkadot (DOT) and Avalanche (AVAX) allow the creation of custom blockchains that interact with each other. A single metaverse needs to connect multiple projects, and blockchain technology has already launched a solution.

What is metaverse work?

As mentioned above, the Metaverse brings together all aspects of life in one place. While many people are already working from home, in the Metaverse you can enter a 3D office and interact with "virtual avatars" of your colleagues. Your job may also be related to the Metaverse, earning income that can be used directly within the Metaverse. In fact, similar forms of work are already emerging.

Today, GameFi and the "play and earn" model are creating a stable source of income for players around the world. These online jobs are great options for future Metaverse projects, and they show that people are willing to invest time, enjoy life and earn income in the virtual world. "Play and earn" games like Axie Infinity and Gods Unchained don't even have 3D worlds or avatars. However, the principle they espouse is that they can become an integral part of the metaverse, creating a way to make money entirely in the online world.

Metaverse Examples

While a single linked metaverse has not yet been created, we can experience many metaverse-like ones Platforms and projects. They often incorporate NFTs and other blockchain elements. Let's look at the following three examples:

"SecondLive"

"SecondLive" is a 3D virtual environment where users can control avatars to participate in social interaction, study and work. The project also launched an NFT marketplace for exchanging collectibles. In September 2020, "SecondLive" held the Binance Smart Chain Harvest Festival as part of its anniversary celebrations. The virtual expo showcases various projects in the Binance Smart Chain (BSC) ecosystem for users to explore and interact with.

《Axie Infinity》

《Axie Infinity》is a "play and earn" ;'s games create stable income for players in developing countries. By purchasing or receiving three creatures named "Axie" as a gift, players can harvest "Smooth Love Potion" (SLP) tokens. After selling on the open market, players can earn approximately $200 to $1,000, depending on how deep into the game they are and the market price.

Although "Axie Infinity" does not provide a single 3D character or avatar, it provides users with metaverse-like job opportunities. You may have heard of Filipinos playing the game as an alternative to full-time jobs or social benefits, which has become a well-known anecdote.

Decentraland

"Decentraland" combines social elements with cryptocurrency, NFT and virtual real estate online digital world. Additionally, players will be able to play an active role in platform governance. Like other blockchain games, NFT stands for cosmetic collectibles. In the game, users can also use the cryptocurrency MANA to purchase 16x16 NFT plots of LAND. All these features combine to create a complex cryptocurrency economy.

What is the future prospect of the Metaverse?

On the issue of creating a unified metaverse, Facebook has the highest voice. For the metaverse powered by cryptocurrency, Facebook’s launch of the Diem stablecoin project is of great significance. Mark Zuckerberg made it clear that he plans to use the Metaverse project to support remote work and improve the financial situation of people in developing countries. Facebook owns social media, communication channels and cryptocurrency platforms, laying a solid foundation for integration in multiple areas. Large technology companies such as Microsoft, Apple and Google are also planning to build the Metaverse.

When it comes to the metaverse empowered by cryptocurrency, the deep integration of the NFT market and the 3D virtual world seems to be the next step. NFT holders can already sell items obtained from multiple sources on marketplaces such as OpenSea and BakerySwap, but there is currently no widely available 3D platform. Blockchain developers may develop popular Metaverse-like applications at scale, with the number of users they acquire organically surpassing even the big tech giants.

Summary

Although there is a long road ahead for an independent and unified metaverse, But we're already seeing trends driving its advent. This seems to be another big science fiction use case for the fusion of blockchain technology and cryptocurrency. Whether the Metaverse can truly be realized is still unknown. However, we can now experience projects like the Metaverse and continue to integrate blockchain into our daily lives.