The Relationship Between Metaverse and Cryptocurrency

The Relationship Between Metaverse and Cryptocurrency

A lot is going on in the world today, and these things are changing the lives of people globally. As exciting as it is, you might still be wondering: what is the difference between Metaverse and Cryptocurrency? We will attempt to answer that question for you. People are taking huge strides in technology today. Technologies like the internet, smartphones, and the cloud are rocking our world today. 

In similar ways, the Metaverse has become a revolutionary technology today. The Metaverse is changing the way people live and interact, and a lot of people believe that it is here to stay. 

The popularity of the Metaverse is growing fast. With this growth rate, a lot of people have been concerned about how the technology will accommodate cryptocurrencies. 

The truth remains that the Metaverse is a virtual world like this real world. Just like the real world will need currencies to operate and run its economy, the Metaverse will also need currencies to run. This point is where cryptocurrencies show up. 

If you have been following trends, you will see that Meta coins’ value jumped by 164% in less than 24 hours, after Facebook changed its name to Meta. 

MANA, a Decentraland’s native token, pumped up to 400% from the time of Facebook’s announcement. 

The SAND token, popularly known as Sandbox has risen by over 300% from that time. Sand is a virtual reality platform. 

Axie Infinity, a pioneer of cryptocurrency gaming has seen a massive increase in its native currency value. The native currency value is called Axie Infinity Shard. 

The Metaverse

The Relationship Between Metaverse and Cryptocurrency

The idea of the Metaverse began with Neal Stephenson. He described the idea as a digital space that people can access using goggles for virtual reality and optic network fibers. He described this idea in 1992. 

His idea of the Metaverse contained everyday life and activities in a virtual version. It contained buildings, parks, ordinary spaces, and even the people we have around us. 

In this virtual world, the laws of physics do not apply, anything within the imaginations of people in that world is what is possible and attainable. 

The interest in the Metaverse by the general public went up when Facebook announced that the next phase of the internet is the Metaverse. 

The Metaverse exposes everyone to a lot of possibilities. It gives you the power to live out your imagination in a virtual world. It means you can do and be whatever and whoever you want.

You can gather with people, play, create, shop, and learn about new things in the metaverse. With the Metaverse, the world is not just your playground, you also have the power of your mind right in your palms. 

In the Metaverse, you can use your avatar to interact with other people. There, you have complete power to do whatever you want to do. 

Just like you can own real estate properties here in the physical world, you can own virtual properties too. You can build properties and sell them to other users in the Metaverse. 

You can even sell NFTs there, or exchange your properties for NFTs. It shows you that NFTs are units of exchange there just like cryptocurrencies (native Metaverse tokens).

How Blockchain Powers the Metaverse and Cryptocurrency

Blockchain is the fundamental block of both cryptocurrency and the Metaverse. The creator of bitcoin under the pseudonym Satoshi Nakamoto first described the blockchain technology in 2009. 

The blockchain is a data transaction recording ledger. The ledger is a public ledger. Transactions in blockchain technology happen without middlemen such as banks and other financial institutions. 

The transactions are peer to peer and they are left open for everyone to see. As long as the individuals are in the blockchain network. The elimination of middlemen will eventually cause a reduction in the cost and duration of transactions. 

Just the way we live in a physical world, and commercial activities take place, they also take place on the internet. Internet commerce today happens in a digital aspect of the real world. 

As fiat currencies are legal tenders here, in the digital world, digital currencies are used for transactions. 

The digital currencies in the digital world (Metaverse) are cryptocurrencies. These currencies were built for business transactions in the digital world. They are the native currencies of that world. 

The Metaverse is built on Web 3.0. It has decentralized applications that are powered by blockchain technology. These applications support user-owned data and the cryptocurrency asset economy. 

The Relationship Between Metaverse and Cryptocurrency

The Metaverse was designed in such a way that it will integrate seamlessly with the real world. In the Metaverse, you will be able to build, own and share stuff with other users. 

Now, in a world where you want to be and do anything, you will need money or funds to do so. The funding that you will need will be done through crypto. 

Metaverse and Cryptocurrency Blockchain

Whether it is cryptocurrency or Metaverse, blockchain technology is the backbone. Unlike our current internet, the Metaverse is not centralized. The ownership of the Metaverse belongs to people who have access to it. 

The decentralized system of the Metaverse is the same system that crypto networks run on. The Metaverse however is still growing, but the blockchain technology is well established. 

Although blockchain technology powers the Metaverse and cryptocurrency, these two components do not run on the same blockchain. Although they do not run on a similar blockchain, their blockchains have similar features. Some of these features are;

  • Decentralized Ethereum nodes up to 1100
  • Easy movement of content you upload from one platform to the other. 
  • You do not need a third party to access, move or use your creations. 
  • You have complete charge over the things you do on the network. 

Top 10 Cryptocurrencies in the Metaverse

  1. Decentraland (MANA)
  2. The Sandbox (SAND)
  3. Star Atlas (ATLAS)
  4. Axie Infinity (AXS)
  5. Alien Worlds (TLM)
  6. Enjin (ENJ)
  7. Illuvium (ILV)
  8. Gala Games (GALA)
  9. Flow Blockchain (FLOW)
  10. WEMIX

Conclusion

Both in the physical and digital world, online payments are payment systems that are well established. The idea of cryptocurrency in the Metaverse is just a replication of online payment systems in our physical world. 

This online payment system goes even a bit further with NFTs. So, in a virtual world, the use of cryptocurrencies for transactions makes a whole lot of sense. It provides users in this virtual world with the ability to exchange value in the most transparent fashion possible. 

The Metaverse is growing so fast and cryptocurrencies are a major factor driving this growth. With the constant use of cryptocurrency in the Metaverse, it will grow to its full potential.

Whether you want to fully get involved in the Metaverse or you just want to enjoy the benefits partially, your one access pass to all the possibilities in this virtual world is cryptocurrencies.

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