The Metaverse: What You Need to Know
The internet is evolving, and the next natural step in its evolution is the Metaverse – a deeply immersive virtual reality where you can literally do anything from the comfort of your home. The Metaverse offers new opportunities for users and companies to express themselves creatively, reach out to people and monetize their participation in the virtual space.
Let’s find out more about the Metaverse, and what is this next generation of the World Wide Web driven by?
The Metaverse Explained
The definitions of “metaverse” may vary, yet in broader terms, it is a network of 3D virtual worlds – immersive and interactive environments that can support social and commercial activities.
The Metaverse fully relies on augmented reality (AR) and virtual reality (VR) to create complete 3D experiences. Just as importantly, it uses blockchain technology like cryptocurrencies and non-fungible tokens (NFTs) to support digital transactions.
- Related: What are NFTs?
The Internet and the Metaverse: What’s the Difference?
Let’s ignore the more technical aspects and focus on the following instead: the internet is what we browse, whereas the Metaverse allows for a fully immersive participation where users become co-creators and shape the virtual space according to their own vision.
Augmented reality (AR) and virtual reality (VR) are key technologies making the Metaverse an even more immersive experience, providing a deeper feeling of belonging and innovative sensorial experiences.
Augmented reality (AR) is an interactive experience where the real-world environment and objects are enhanced by computer-generated perceptual information, typically employing multiple sensory modalities, such as visual, auditory, haptic, somatosensory, and sometimes even olfactory.
Virtual reality (VR), on the other hand, is a simulated experience that can be both similar to or completely different from the real world environment. Both AR and VR applications find wide use in entertainment (mostly video games), education, and business (i.e., virtual meetings).
The Metaverse, Crypto, and NFTs
What is the connection between the Metaverse, cryptocurrencies and NFTs?
The Metaverse is a virtual universe with an economy of its own and unique monetization possibilities. To manage it, cryptocurrencies are the most obvious choice as many platforms in the Metaverse are based on decentralized blockchain networks using crypto for payments. But where do NFTs fit in the picture?
- You may want to give The New Internet: Web 3.0, Crypto, and Blockchain a read.
NFTs are an integral part of the Metaverse, since they operate on blockchain technology (read smart contracts) and provide ownership of digital artwork and collectibles. Moreover, users in the Metaverse have the opportunity to design, create and trade virtual in-game assets and artworks in the form of NFTs. This can simply apply to in-game items and tools, all the way to lands (in-game real estate) having intrinsic value.
Most NFTs exist on the Ethereum blockchain and operate on smart contracts. A Metaverse user who wants to buy a digital artwork or collectible can do so with NFTs, which brings us back to cryptocurrencies. Bottom line, all virtual transactions in the Metaverse will rely on virtual currencies.
The Bright-Looking Future
Still being in its early stages of development, the Metaverse has yet to unveil its full potential. But the picture of the virtual future shows very bright possibilities – a report released by McKinsey & Company estimates the Metaverse will generate up to $5 trillion in impact by 2030. The impact varies by industry, with an estimated $2 to $2.6 trillion impact specifically on e-commerce.
Discover the bright-looking future today! Now may be a good time to invest in cryptocurrencies and NFTs, which will pave your way to a wide range of opportunities in the Metaverse – you can sign up to our platform in just a few steps to start trading crypto today!