Why is cryptocurrencies the key to realizing the "metaverse"?

With Facebook's recent announcement of renaming Meta and aggressively exploring the " metaverse ," there's been a lot of discussion about how this field will evolve. Having said that, the Metaverse will be a huge opportunity for blockchain and crypto assets to go mainstream , why?

The promise of the Metaverse is that it will provide users with an augmented reality experience that goes beyond physical reality in many ways, and the opportunities within it. In discussions about the potential of the metaverse, what is often overlooked is how all the information involved in the metaverse will be preserved . For example, if people are going to spend more and more time in virtual reality, how can they ensure that their affairs (transactions) and related information are safe?

Virtual reality, and virtual reality-related applications, has been discussed a lot recently, but the impact of blockchain and cryptocurrencies on the innovative idea of the metaverse has not been discussed. In short, the Metaverse needs cryptocurrencies to function as advertised . Let's see why.

We know that the blockchain is immutable . Blockchain technology and platforms have proven to be impenetrable and immutable, which is critical if any virtual reality platform is to achieve mainstream adoption. Specifically, if a person or group of people is to interact with others in a virtual environment, some form of assurance is required to ensure the security of these transactions.

In the age of Web2, hacking and data breaches are common, but if people are to participate in a completely online and virtual environment, the underlying platform they will use must be secure. Blockchain not only supports instant confirmation of information, but also that these transactions (transactions) are secured in a cryptographic manner. In other words, blockchain and crypto assets are a necessary and integral part of virtual reality implementation.

Instant transactions . The Metaverse will demand and need transactions to be done on demand, and that’s what blockchain and cryptoassets can help with. For a true VR environment to function as advertised, transactions need to be made on a secure, near-instant basis. Specifically, users who are part of the Metaverse ecosystem will need to 1) be able to transact and interact as easily as they experience it in person; and 2) have confidence that these transactions (transactions) will be executed.

Precisely because cryptocurrency payments are associated with the metaverse and are built on familiarity with online payments, the opportunity for cryptocurrency payments in the metaverse is self-evident. In an online virtual environment and ecosystem, having a secure, traceable and transparent payment method will be an important part of the future development of the Metaverse , and cryptocurrency transactions in its virtual, traceable and real-time way Individuals and institutions offer a viable, tried-and-true approach.

In fact, cryptocurrency payments already exist . Conducting transactions and processing businesses in an online environment is already a mainstream development, and it will become more common as payment giants such as Visa , Mastercard , and PayPal implement cryptocurrency payments. In a completely virtual ecosystem (aka the metaverse), cryptocurrency-powered or enhanced payments will become more popular, and it makes sense that cryptocurrency payments will come to the forefront of the future.

Despite the high price volatility of Bitcoin and other decentralized cryptocurrencies, the rise of stablecoins and central bank digital currencies (CBDCs) means that it has never been easier for people to transact through cryptoassets. In other words, individuals who want to transact through cryptocurrencies or cryptocurrency-based platforms (like in the Metaverse) will have many options.

Clearly, the metaverse is still an emerging and rapidly growing field, but the underlying truth is: in order to power and enable a fully functioning metaverse, blockchain and cryptoassets will need to play a major role in its future realization . To realize the true potential of the metaverse, there will be a need for a transparent and traceable way for people to transact and interact, and blockchain and cryptoassets offer a potential answer to this need.

The metaverse may (and should) grab the headlines, but blockchain and cryptoassets are key components in enabling the technology to reach its full potential .