The relationship between the public chain and the Metaverse
The hype around Metaverse continues to grow, which makes sense in the current environment, as it is mainly digital. Metaverse aims to make our digital life even more immersive and allow users to do everything they do in real life in the virtual world.
It is a convergence of digital experiences to enable rich, real-time, globally-interconnected virtual environments that present a new opportunity for people to work, play, collaborate and socialize in entirely new ways. Metaverse will also act as a significant player in growing the digital economy.
Banking giant JPMorgan Chase estimates the Metaverse will represent a $1 trillion market, while research giant Gartner projects that 25% of people will spend one hour per day in the Metaverse by 2026. The possibilities in the Metaverse are limitless.
Some forms of Metaverse can already be seen in VR headsets, ultra-fast broadband speeds, and persistent always-on online worlds.
Metaverse uses blockchain, augmented reality (AR), and virtual reality (VR). Blockchain is a necessary technology for the main elements of the Metaverse, including digital proof of ownership, money transfer, governance, accessibility, and interoperability.
The Essential Component
Blockchains offer many benefits to the Metaverse, such as security, trust, transparency, and decentralization. Smart contracts are another of its features that makes it possible to effectively regulate economic, social, legal, and other relations between the participants within the Metaverse.
The global, decentralized, and 24/7 available blockchain overcomes the shortcomings of centralized data storage for Metaverse and minimizes the risks present in centralized ecosystems such as hacks, malware, and a handful of few controlling the decision-making power.
It provides access to a digital space without the interference of a centralized institution and allows us to build a stable virtual ecosystem.
This technology can be applied in building and operating the Metaverse in various ways, including in-game assets, virtual currencies, self-identity authentication, NFTs, real estate, and more.
In the future, the Metaverse will have its own economy where people can create, buy, and sell goods. The digital universes in the Metaverse will have their own money in the form of crypto and marketplaces for digital clothing and accessories for avatars.
Thanks to NFTs’ ability to prove digital ownership, users will have complete control over their digital assets in the Metaverse. By using blockchain immutability, NFTs will also help create exclusive environments and enhance the social experiences and digital community.
We are already seeing this with many platforms that provide an ecosystem for creating, owning, and monetizing decentralized digital assets. For instance, in the virtual world Decentraland, everything can be bought with its native token MANA.
Scalable & High-performance Blockchain
Currently, Ethereum is the most popular blockchain on which these different virtual worlds and a slew of other emerging technologies like DeFi are being built. However, Ethereum’s scaling issues prevent the mass adoption of applications.
During periods of high network activity, the blockchain tends to suffer from congestion. This leads to an increased network fee which is Ethereum’s most significant drawback as it prices out small users and holds it from reaching mainstream adoption. To build on Ethereum, one needs to learn its native language, Solidity, which can be difficult.
For the Metaverse to be accessible and usable to people worldwide, it needs a blockchain that is not only cheaper for both the users and the developer but also faster. A high-performance and scalable enough public blockchain platform is needed to build real-world applications and host their large-scale implementation.
A decentralized, interoperable blockchain that offers an improved user experience will be perfect for building the Metaverse and the new phase of the internet, Web3.0.