Imagine the metaverse as a magical makeover of the internet, where everything comes alive in a virtual world. It’s like stepping into a dreamland by wearing gadgets like VR (virtual reality) and AR (augmented reality) headsets. In simple terms, it’s a collection of 3D virtual worlds that blend together, providing a place to hang out, make friends, and do business in an exciting way. In most metaverse platforms, users are required to create their avatar which represents their actions virtually.
The term “metaverse” has been gaining popularity recently, especially after Facebook changed its name to ‘Meta’. This term first originated in Neal Stephenson’s 1992 science fiction novel “Snow Crash,” where it was introduced as a combination of “meta” and “universe”. The prefix “meta” means “beyond” or “transcending” in Greek, implying that the metaverse is a realm that goes beyond the physical reality.
Although the metaverse is currently in its early stages of development, it holds incredible potential to completely transform how we engage with the internet and its users. It could allow us to work, play, shop, and socialize in a completely immersive and interactive way. It could also create new opportunities for education, entertainment, and even healthcare.
What is the Main Purpose of Metaverse?
The concept of metaverse is not limited to science-fiction. The network of 3D worlds focused on social and economic connections are already huge parts of internet experience. Besides VR and AR headsets, users can access these worlds through everyday devices like smartphones, computers, and consoles. Some popular examples of this platform are Minecraft, Fortnite, Roblox, Second Life, and VRChat.
The main purpose of the metaverse is to provide a more immersive and interactive experience for users who want to explore, play, create, communicate, and collaborate in digital environments. There can be new opportunities for education, entertainment, business, and innovation inside the metaverse,. For examples, users can learn new skills, enjoy various forms of media, buy and sell digital goods and services, and participate in creative projects in the metaverse.
How Does Currency Work in Metaverse?
Ability to create, own, and trade digital assets in the metaverse is probably its most important aspect. These assets, such as avatars, clothing, art, music, games, or experiences, have a value that can be exchanged for other assets or for real money.This is where currency in the metaverse comes in. Digital money is used to buy and sell within the metaverse.
There are different types of currency in the metaverse, depending on the platform, the community, and the technology. Some examples are:
This is the currency that is native to a specific game or virtual world, such as Robux in Roblox, V-Bucks in Fortnite, or Linden Dollars in Second Life. These currencies canusually only be used within the game or world where they are issued, and they are often controlled by the platform owner.
This is a type of digital money that is based on blockchain technology, which is a system of distributed ledgers that record transactions and ensure their security and transparency. Cryptocurrencies are decentralized, meaning that they are not issued or controlled by any central authority or intermediary. Some examples of cryptocurrencies are Bitcoin, Ethereum, or Dogecoin. Cryptocurrencies can be used to buy and sell digital assets across different platforms and applications within the metaverse, as well as to transfer value outside of the metaverse.
Non-fungible tokens (NFTs):
These are a special type of digital asset that represents something unique andscarce, such as a piece of art, a collectible, or an identity. NFTs are also based on blockchain technology, which ensures their authenticity and ownership. NFTs can be seen as a form of currency in the metaverse, as they can be traded for other assets or for real money. However, unlike cryptocurrencies, NFTs are not interchangeable or divisible, meaning that each NFT has its own value and characteristics.