How the Future of Blockchain Will Be Unleashed Through VR

VR platforms can accelerate new blockchain tech quickly and affordably.

Following the rapid price increase of major cryptocurrencies, thousands of blockchain projects have set up shop, aiming to disrupt current business models while inventing entirely new ways of transacting money, goods, and data.

But headwinds remain. Most blockchain projects face issues regarding scaling, security, and pace of adoption. And while it won’t completely eliminate those issues, VR can play a major role in easing the pressure, ultimately accelerating the development and implementation of crypto-tech.

Three factors make a marriage between blockchains and VR attractive:

1. VR is a fertile testing ground for experimentation

Environments in VR are completely malleable, down to the setting, physics, and social parameters. This allows blockchain developers to experiment in ways that would be impossible in the physical world.

Perhaps the biggest advantage for experimentation is that VR users won’t have any preconceptions about how the world should work. In multiple gaming universes, we’ve seen the introduction of completely new currencies. World of Warcraft alone has more than 70 accepted digital currencies. Adoption is rapid in these worlds given there was no preexisting alternative.

In VR, blockchain developers don’t need to build around a historical system. They can start from scratch, leveraging their findings, data, and user behavior in the physical world.

According to Fred Ehrsam, co-founder of Coinbase:

I’d guess blockchains will be the full blown backbone of virtual worlds — the system for currency, assets, identity, even governance — before doing the same in the “real world”. Which is where I think we will end up in the real world eventually; it’s just a matter of which goes first and how long until it’s the case for both.

2. VR promotes social interaction regardless of location or background

As with blockchains, VR platforms can be agnostic to geography or status. A user is a user. This can have radical results for business, leisure, and cultural exchange.

For example, while the internet has given rise to telecommuting and global workforces, every traditional company is still bound by the laws and regulations of their domiciled nation. These factors can artificially shift management, hiring, and workflow decisions.

Aragon, a blockchain project, lets you manage entire organizations using Ethereum. “By making it possible for everyone in the world to organize,” the company says, “we are enabling the borderless, permissionless creation of value.” Decentralized organizations like those powered by Aragon would benefit immensely by using a VR platform to conduct interactions and transactions.

For example, Decentraland is creating the first completely decentralized virtual platform, where its users own the network by logging ownership in the Ethereum blockchain. Running a decentralized organization on a decentralized VR platform could give rise to the first truly borderless companies, taking full advantage of a global workforce. Companies can recruit, hire, and manage their employees with zero regard for ethnicity, nationality, or class.

3. VR can help push the direction of blockchain development

VR will unlock new ways for humans (and eventually AI) to socialize and transact goods and services. This could provide insight to developers looking to build innovative blockchain technologies.

According to Euvie Ivanova of Future Thinkers:

Virtual reality is not just a platform for gaming and content consumption, it’s a way to create transformative experiences. I believe it can also be a tool to transform the way people think. What better way to explore cities, digital landscapes, hostile natural environments, and other dimensions of reality and space? What better way to tell stories and share life experiences?

While VR worlds are in their early stages, they will likely evolve far beyond simply replicating traditional physical experiences. With complete ability to remap natural laws and conditions, VR developers can allow users to adopt new behaviors unexhibited outside virtual reality.

What’s Next

Both blockchains and VR will push organizations and individuals to operate differently, on both a daily and long-term basis. The days are still early, but a marriage between the two is inevitable. Blockchain-powered worlds like Decentraland have already begun.

The ultimate future of blockchains and VR will likely be as unexpected as the introduction of Bitcoin in 2009.

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