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Business News/ Markets / Cryptocurrency/  The Metaverse- a digital playground for future generations

The Metaverse- a digital playground for future generations

This virtual reality world is where people will spend most of their time in the future, representing the new wave of change that is coming to stay

2022 is being predicted as the year of the Metaverse gold rush (Photo: Bloomberg)Premium
2022 is being predicted as the year of the Metaverse gold rush (Photo: Bloomberg)

The word "Metaverse," which was first used in science fiction by author Neal Stephenson in his 1992 book Snow Crash, is becoming reality faster than we could have ever anticipated.

The Metaverse, a virtual reality world that is compellingly more immersive than physical reality, is unquestionably where all the action will be in the future as people connect with one another there more and more.

Holograms will take the place of items like digital displays, and virtual assets represented by Non-fungible Tokens (NFTs) will be in high demand as more people throughout the world invest significant amounts of time creating this alternative reality.

While gamers who have already spent hours playing in the virtual world with their VR headsets can comprehend this vision, it may be more difficult for others to understand why 2022 is being predicted as the year of the Metaverse gold rush.

Metaverse a powerful self sustaining business

The crypto space, as it currently exists, and the major advancements making the metaverse a powerful self-sustaining business of the future are necessary to appreciate the boundless possibilities presented by the Metaverse.

Digital assets like cryptocurrencies, stablecoins, and NFTs are assisting business owners and developers in building a transactional foundation that can support the metaverse thanks to Blockchain technology.

Digital assets unlike fiat currencies

These digital assets have all the characteristics of fiat money or other forms of store of value, such as gold, but none of its drawbacks.

They provide a level of security that is unheard of in the conventional financial sector and may be conducted online without the participation of centralized authority from any mobile or desktop device.

Due to their widespread use, these virtual assets are now a multi-trillion dollar asset class that is utilized to conduct business in virtual environments like the metaverse.

Virtual assets like Bitcoin (BTC) are poised to be the favored currency in the metaverse for the foreseeable future as they give asset holders immutable proof of ownership and reward them with returns on investments in many multiples.

Future Potential in the metaverse Is Endless

Decentraland, a 3D virtual environment created to encourage social interaction, is a prime illustration of the value unlocking potential of the metaverse.

The platform, which was launched in 2017 and is also accessible from a standard computer, enables users to create virtual worlds using digital objects that are replicas of actual objects and interact with digital avatars of other community members. On this metaverse-like platform, everything from a jacket to cars and even real estate is generated and traded using the native digital token MANA.

The site has thousands of users, and just over the past two years, the value of its MANA token has increased by more than 20 times. A plot of digital land in Decentraland recently sold for a record-breaking US$2.43 million in cryptocurrency, highlighting the metaverse's seemingly limitless potential to build an alternate economy that is much larger than even some physical economies of the present. This transaction occurred in November 2021.

Companies joining the bandwagon

Popular companies are also hopping on the metaverse bandwagon in one way or the other. Some are doing this by providing NFTs of their best-selling items, while others are investing billions of dollars in researching and creating the technologies that will run the metaverse in the future.

NFTs will serve as placeholders that represent virtual things in these virtual environments while cryptocurrency will serve as the financial basis for all transactions in the metaverse. A new investment strategy is gripping the world and creating riches like no other sector in an unbalanced society as investors and collectors alike snap up these digital goods.

As the internet transforms into Web 3.0 and more programmers come together to contribute and push the frontiers of the metaverse, it is evolving into a playground where virtual representations of the actual world are turning into gold at a rapid rate.

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Published: 29 Jul 2022, 10:41 PM IST
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