The Metaverse will not scale without blockchain technology

The Metaverse will become our new culture and mainstream, it’s not a question of if, but when.

We will live in two parallel worlds: virtual and real, immersed in these two separate but connected worlds through blockchain technology.

The term “Metaverse” was coined by Neil Stephenson in his 1992 science fiction novel Avalanche. In the book, he proposes a “virtual reality” in which every interaction may have a direct impact on the real world.

Does it sound impossible?

Don’t be afraid to go wild, every sci-fi scene from the 70s and 80s has become a reality. Think about people now using Zoom or Microsoft Teams for conference calls, which are considered science fiction scenes in Back to the Future.

Communicating via a wristband was futuristic in Star Trek and Dick Tracy, but now we can do it via the Apple Watch.

Everything we once imagined has become a part of reality and everyday culture, and the Metaverse is no exception, and blockchain technology will promote the development of the Metaverse.

Many well-known brands understand the power of blockchain technology in the context of the Metaverse and invest in the Metaverse by creating NFTs.

If the Metaverse is not just a 3D game but mimics our physical reality, then the use of blockchain technology is imperative.Blockchain technology will enable all transactions and actions in this virtual space to have a real impact, just like in our real world.

By using blockchain technology, we can not only create and verify virtual assets, but most importantly, transfer and trade their ownership.

Sportswear

Adidas’ December 2021 NFT collection is called Into The Metaverse, which shows not only Adidas’ intention to enter the field, but also its understanding of the need to use NFTs in the Metaverse . Every virtual costume used to dress up a virtual character in the Metaverse is tagged and verified through NFT.

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Nike has also made some progress on this front.

In December 2019, the company was awarded a patent to tokenize ownership of exclusive sneakers, dubbed “Cryptokicks.”

When they are purchased, the sneakers are tied to the holder and recorded through blockchain technology. In addition, the owner of the sneaker can also mix the digital shoe with another digital shoe to create a new pair of shoes.

Nike also filed a trademark with the U.S. Patent Office to sell branded sneakers in a virtual space.

Nike acquired RTFKT Studios, a digital collectibles company, in mid-December 2021, which will allow Nike to sell virtual sneakers to outfit people’s avatars.

Nike’s investment in NFTs and blockchain technology proves that blockchain technology is an essential part of the existence and scalability of the Metaverse. They recognized that without the use of blockchain technology, they would not be able to offer and sell virtual sneakers or other virtual products in the Metaverse.

real estate

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On Decentraland, a decentralized 3D virtual reality platform, there are 90,601 virtual parcels, each of which is an NFT.

In December 2021, the Metaverse Group, a subsidiary of Tokens.com, acquired a virtual lot for $2.43 million, which, like the real world, is located in the central fashion district.

The Metaverse Group plans to develop fashion shows and commercial properties, as well as forge partnerships with existing fashion brands, hoping to expand their e-commerce offerings within the Metaverse.

Financial Institutions

Well-known financial institutions have also invested in virtual real estate.

In February, JPMorgan opened an “Onyx lounge” in Decentraland.

Additionally, JPMorgan released a report explaining how a bank in the virtual world could function like a bank in the real world, and how JPMorgan plans to offer all of its existing services in the Metaverse.

In March, HSBC partnered with virtual real estate platform the Sandbox to purchase a virtual parcel of land centered on sports, e-sports and gaming.

Financial payment service

Financial payment service providers are also betting on the Metaverse.

In April this year, Mastercard applied for 15 trademarks related to NFTs, virtual worlds, and more.

In March, American Express filed for a similar trademark in other areas, including downloadable computer software to facilitate the transfer of virtual payment cards to electronic mobile wallets.

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Visa, the first company to bet on the Metaverse, has been entering the ecosystem for some time now, not only adding crypto to the team, but also buying a CryptoPunk NFT collectible last summer. These actions support Visa’s November 2021 report on “The Metaverse as a Strategic Starting Point.”

Why NFT?

Why are NFTs an important part of the Metaverse? Because everything is based on transactions.

To facilitate any transaction and transfer of ownership, authentication is key. The transfer of ownership cannot happen without verifying who is making the transfer and what is being transferred.

This is the real power of NFTs, providing authentication and facilitating the transfer of ownership. NFTs can verify a physical asset, like a $200,000 single malt whisky, or a virtual package.

The Metaverse doesn’t just create a virtual space, it brings people together in a virtual space, expanding existing communities or creating new ones.

NFTs can facilitate the creation of these communities, both locally and globally, and strengthen their relationships and interactions with brands.

Brands like Dave and Buster, Adidas and Burberry are aware of this and have created NFT collection programs to expand their customer base and engage them in experiences to increase brand loyalty.

These projects are in the experimental phase and no data has been provided by the company or any third party. It’s too early to know what kind of loyalty or rewards programs might work, and some might fail, but brands have recognized the power of NFTs and are starting to invest in these projects.

Transactions and Asset Transfers in the Metaverse

The ultimate vision of the Metaverse is to mimic our real world and transcend it. How do we ensure that transactions in the Metaverse are real and not like fantasy transactions in online games? How will JPMorgan Chase provide current services in its decentralized virtual lounge?

NFTs provide identity verification, and Decentralized Finance (DeFi) provides self-executing products and services where users can directly interact with applications, leveraging blockchain technology, enabling these virtual transactions and connecting virtual and real spaces.

Nearly 30 years after the term “Metaverse” was coined, we have the power to make science fiction a reality, and blockchain technology is the enabler of that dream.

So, we have to dare to imagine. When we imagine a scene, technology can help us “dream come true”.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-metaverse-will-not-scale-without-blockchain-technology/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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