The metaverse and cryptocurrency are two of the most talked-about topics in recent years and for good reason. The concept of a fully-realized digital world with limitless possibilities is truly captivating.
But, as we edge closer to making this vision a reality, it’s crucial to grasp the vital role that these technologies will play in shaping this new world. So join me as we delve into the reasons why cryptocurrencies are an essential part of the metaverse.
First off, the main benefit of using cryptocurrencies is they break the monopoly of power that big tech and governments possess. Ultimately, they give power back to the community.
As cryptocurrencies are decentralized they are not controlled by a central authority. Transactions are done peer to peer and users have complete control over their assets such as gaming skins and avatars through self-custody.
Each user has their wallet and they can trade their digital assets as they please. This means that it’s much harder for someone to take your hard-earned virtual goods, it also means that there is not a gatekeeper dictating the rules of these virtual worlds.
Anyone can access them and they will be more resistant to censorship. Sounds pretty good to me, it’s certainly better than having Mark Zuckerburg reign supreme.
Not to mention, NFT technology will be utilized to create scarcity in these digital worlds. If you didn’t know, NFTs stands for non-fungible tokens which are essentially unique assets that cannot be copied or faked.
In other words, each asset has a unique ID and they can be verified by anyone to ensure authenticity. For instance, in the metaverse, NFTs could be used to represent virtual property, such as virtual land, buildings, and other assets.
This would allow individuals to own and trade these assets just as they would in the real world, creating a whole new economy within the metaverse.
Ultimately, humans are drawn to rare items and they will use them as status symbols. People will want a rare NFT avatar such as a bored ape yacht club to show off.
Not to mention, as users in the metaverse have self-custody over their assets they will likely be cross-compatible with different worlds. Instead of being tied to one game or virtual world like we currently have, Gamers will be able to transfer their items between them.
If a company goes bust you do not lose your assets as they are not stored on a central database. Instead, they are stored on the blockchain which is secured by a vast network of computers therefore will likely always remain operational.
Blockchain technology is also completely open. It contains a database that logs each transaction since inception and therefore anyone can verify the information. This highlights any malicious activity and creates a more honest system.
Lastly, cryptocurrency technology will allow the use of decentralized autonomous organizations. Simply put, they are community-owned organizations whereby a large community of token holders can vote on a shared mission.
If you own the cryptocurrency you are essentially granted voting rights. Ultimately, this allows the community to shape the development of the metaverse creating a more democratic system.
At the end of the day, cryptocurrency is essential for ensuring freedom in the metaverse. Thanks for reading.
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Want to learn about the future of VR gaming? Click here to read my previous article.
