The metaverse and cryptocurrency connection
What is the Connection between Metaverse and Cryptocurrency?
Cryptocurrencies are another buzzword that comes up in connection with the Metaverse. Suppose several virtual worlds join together to form a metaverse and are connected to the real world and economy in various ways. In that case, users and information must move across borders and payments.
Cryptocurrencies are currently the best approach here, as they enable electronic and comparatively fast transactions. However, a few innovations are still needed here.
Wallet addresses are long and unwieldy, and payments can be lost due to errors when entering them or choosing the protocol. One currency can only be exchanged for another at one exchange. The entire world of cryptocurrencies is frayed into many individual networks; routing across multiple networks requires interfaces and translation or conversion of protocols.
Decentralized solutions are working on exchanges, while new cryptocurrencies create interfaces.
NFTs as Virtual Objects
Crypto casinos use blockchain technology to record transactions and ownership. The individual currency units are identical, and it almost doesn’t matter who owns which virtual coin. NFTs work; differently they are limited in number and can be unique. This makes it possible, for example, to record who exactly owns a virtual item.
In a virtual world, NFTs can be linked to other properties; for example, they could have identification or key function, give special avatar abilities, or have purely cosmetic properties.
Here, too, challenges arise in the cross-platform implementation. On the one hand, the blockchain technology behind NFTs must be compatible, and on the other hand, there must be an equivalent so that a virtual object from one world can also be used in another.
Virtual Worlds with NFTs and Cryptocurrency
Today, many online platforms, communities, and virtual worlds are testing and using cryptocurrency and NFTs for various purposes. Some are built or designed like computer games, and others are more like open-world simulations or sandbox games about trying things out and exploring the world.
Decentraland is a virtual 3D platform that is decentralized and revolves around user-generated content. On their land, they can create buildings, things, and activities.
Connected to this is a marketplace for virtual items and the possibility to vote via cryptocurrency on the future development of Decentraland.
Decentraland uses NFTs for virtual things and the cryptocurrency MANA, based on the Ethereum blockchain. The platform attracted attention through auctions of NFTs and virtual land parcels.
The Sandbox is a virtual world that uses Ethereum Blockchain technology. Users can create, own, and profit from their content within the world. An integrated game maker helps build your 3D games for free.
The cryptocurrency SAND accompanies this. The game’s NFTs are traded on the OpenSea platform, among others.
Axie Infinity launched in 2018 as a battle and barter game. Players engage with game characters called Axies, which can be collected, traded, and levelup to send them into battle against other characters.
Axies exist digitally as NFTs, and players can profit from the game via cryptocurrency.
Axie Infinity NFTs are among the most expensive NFT collections around.