Much has been written about the metaverse, and especially with Facebook (now Meta) so actively involved in this space there is bound to be debate around how this sector will evolve. That said, the metaverse is also a tremendous opportunity for blockchain and cryptoassets to move to the mainstream; let’s dive in.
The promise of the metaverse is that it will provide users an augmented reality experience that – in many ways – might exceed physical reality in terms of the experiences and opportunities therein. What is oftentimes missing from the discussions around the potential of the metaverse is how all of this information will be secured and protected. If, for example, individuals are going to be spending increasing amounts of time in this virtual reality, how can they be sure that their transactions and associated information will be secure?
Virtual reality, and engaging with virtual reality applications, has been discussed quite a bit recently, but something has gone undiscussed are the implications and impact of blockchain and crypto on this innovative idea.
The metaverse needs crypto in order to operate as advertised, and let us take a look at just why this is.
Blockchain is immutable. Blockchain and blockchain platforms have proven, to this point, to be unhackable and immutable, which is critically important if any virtual reality platform is to achieve mainstream adoption. Specifically, if an individual or group of individuals are going to be engaging with other people in a virtual environment there needs to be some form of assurance that these transactions are secure.
Hacks and data breaches occur on a frequent basis, but if people are going to be expected to engage in a wholly online and virtual environment, the underlying platform on which they are going to be using needs to be secure.
Blockchain enables not only instantaneously confirmed information, but also enables these transactions to be cryptographically secured and protected. Blockchain and cryptoassets are, in other words, a necessary and integral part of how virtual reality will be implemented.
Instant transactions. Building on that first point, the metaverse will require and need transactions to be completed on an on-demand basis, which is something that blockchain and cryptoassets can help enable. For a truly virtual reality environment to work and function as advertised there will need to be transactions and that occur on a secure and almost instantaneous basis. Specifically, the individuals that are a part of this ecosystem will 1) need to be able to transact and interact as easily as if they were in person, and 2) have the confidence that these transactions will be completed.
Especially as is it connected to the metaverse, and building on the familiarity that individuals have with online payments, the opportunities for crypto payments should be self-evident. In an online, or virtual, environment and ecosystem, having a payment method that is secure, traceable, and transparent will be an integral part of how this space will evolve going forward.
Crypto transactions provide a viable and proven method for individuals and institutions to conduct transactions in a virtual, traceable, and real-time manner.
Crypto payments are already here. The trend toward virtual and online payments has been developing and building even without the continuing implementation of blockchain and cryptoasset technology. Transacting, and engaging in commerce, in an online environment, is a mainstream evolution that has become even more commonplace with the implementation of crypto payments at organizations such as Visa V , Mastercard MA , and PayPal. In an ecosystem that is entirely virtual, which is what the metaverse is, crypto-enabled or augment payments will be even more popular, and it makes sense that crypto-enabled payments will move to the forefront going forward.
Even with price volatility that has been commonly associated with bitcoin and other decentralized cryptocurrencies, the rise of stablecoins and central bank digital currencies (CBDCs) means that the ability to conduct transaction via crypto has never been easier. In other words, individuals who would like to conduct transactions via crypto – or via a crypto based platform – (like the metaverse), will have numerous options to do so.
Clearly the metaverse is still an emerging and fast growing area, but the underlying truth is that – in order to facilitate and realize a fully functioning metaverse – blockchain and cryptoassets will need to play a prominent role in the future implementation of this idea. In order to realize the true potential of this space there will need to a transparent and traceable method to 1) conduct transactions, and 2) interact with each other; blockchain and cryptoassets provide a potential answer to this need. The metaverse may, and deservedly so, make headlines, but blockchain and cryptoassets are key components to having this technology reach its full potential.