The way the cryptocurrency sector is growing and evolving is amazing and even the industry veterans are finding it hard to decipher the emerging trends. You will see newer generation crypto projects appearing on the realm, designed to cater to specific user needs, unlike first-generation crypto projects. Of late, the concept of the crypto metaverse is gaining traction with the users and investors and it is a global trend. These crypto projects are mostly centered on virtual games and users get a lot of customization options in these virtual worlds.
What is a metaverse and what is its significance in crypto context?
The metaverse denotes a type of 3D virtual environment that exists online and enables the users to do many real-life activities in the way they like, albeit through simulation. They can, for example, build things, play games, work, socialize and trade crypto assets. The idea of the metaverse is not very new and some multiplayer games introduced the concept decades back. Back in 1992 when the internet was in its infancy stage, Neal Stephenson wrote Snow Crash, the cult science fiction novel where a digital-physical hybrid world was envisioned. At that time, it was envisioned as a concept ahead of its time.
However, in recent years, the growth of the crypto sector has reignited the interest in the metaverse. The recent Facebook announcement of creating a metaverse has only added fuel to the fire. A number of companies are trying to bank on Blockchain technology to build their versions of digital worlds, where gaming is intertwined.
In recent years, a number of crypto projects based on the metaverse concept have been unveiled and the price of their native coins has been bullish, at large. As per the view of Haim Israel, a strategist involved with the Bank of America, the metaverse is a huge opportunity for the fast-growing crypto sector. This has the potential to make Blockchain-based transactions acceptable for the mass. The next generation of crypto tokens supporting the metaverse model will replace existing digital currencies, largely. However, existing crypto coins are too volatile for mass adoption and the metaverse developers are expected to use stablecoins.
The top crypto projects based on the metaverse model
While the concept of a metaverse in the crypto realm is relatively new, it is no longer limited to the concept stage! A number of new crypto projects based on the metaverse concept have appeared and they have found a very good response.
- Decentraland- This is one popular crypto platform supporting the metaverse model. It relies on decentralized crypto technology using which users can purchase a virtual plot of land, make structures and vote to tweak token governance. It has a native token called MANA.
- Sandbox- It is a promising and popular Virtual-reality platform where you can play games and monetize your crypto assets. It is a versatile virtual platform where creating games and in-game assets and trading them as crypto assets is possible. Its native token SAND has been going bullish post the Facebook renaming development.
- Axie Infinity- This is said to be the crypto-gaming pioneer. It lets the users/players to buy digital pets and customize them. These crypto-based games are garnering huge user base with time.
- Star Atlas- This metaverse based game lets you explore extra-terrestrial space virtually and you can use customised spaceships. There are plenty of in-game activities and you can use the ATLAS Metaverse token. There is POLIS- an in-game currency.
The crucial link between Cryptocurrency and virtual game worlds
In the real world, you use fiat currency for all transactions for things like buying land, food or movie tickets, etc. In the virtual world of games, what do you use to pay for in-game merchandise? The answer is crypto coins. That explains how crypto projects and online games are intertwined and the ecosystem is referred to as the metaverse.
There are advantages of using Cryptocurrency in the metaverse ecosystem. The transactions are executed and confirmed lightning fast, more so when you use the new generation crypto projects. There is no centralized authority to monitor transactions and so anonymity is maintained. Since the metaverse crypto projects are based on Blockchain, the transactions remain secure and traceable. Besides, in some such projects, you can create items for using in-game and use them to earn in several ways.
Is there any drawback or loophole in metaverse realm?
While the excitement around Metaverse and crypto projects based on the model has reached a crescendo, a section of industry experts thinks there is a need to be cautious about it. These virtual platforms are in the nascent stage, beyond any doubt. Like most typical crypto projects, these too are unregulated and so there is an element of uncertainty around them.
The virtual world-based games have been around for a long but that has not set the virtual-reality headsets market on fire. Others point out the possibility of a giant like Facebook (now meta) monopolizing the segment in the near future. Most of the metaverse-based crypto projects are at an early stage and yet the excitement around them is too high. So, the users should take a cautious approach and refrain from investing heavily in these crypto projects right now.
