What is the Metaverse?
March 07, 2023
Read Time 2 MIN
The metaverse is an online, 3D universe that combines multiple different virtual spaces. You can think of it as a future iteration of the internet. The metaverse will allow users to work, meet, game, and socialize in these 3D spaces.
The metaverse isn’t fully in existence, but some platforms contain metaverse-like elements. Video games currently provide the closest metaverse experience available. Developers have pushed the boundaries of the definition of a game by hosting in-game events and creating virtual economies.
Although not required, cryptocurrencies can be a great fit for a metaverse. They allow for the creation of a digital economy with different types of utility tokens and virtual collectibles (NFTs). The metaverse would also benefit from the use of crypto wallets, such as Trust Wallet and MetaMask. Also, blockchain technology can provide transparent and reliable governance systems.
Blockchain, metaverse-like applications already exist and some even provide people with an income. Axie Infinity is one play-to-earn game that many users play to support their income. SecondLive and Decentraland are other examples of successfully mixing the blockchain world with virtual reality apps.
When we look to the future, big tech giants are trying to lead the way. However, the decentralized aspects of the blockchain industry are letting smaller players participate in the metaverse’s development as well.
The metaverse may be driven by augmented or virtual reality, with each user controlling a character or avatar. For example, you might take a mixed reality meeting with an Oculus VR headset in your virtual office, finish work and relax in a blockchain-based game, and then manage your crypto portfolio and finances all inside the metaverse.
Some aspects of the metaverse are already existing in virtual video game worlds. Games like Second Life and Fortnite or work socialization tools like Gather.town bring together multiple elements of our lives into online worlds. While these applications are not the metaverse, they are somewhat similar as the metaverse doesn’t exist yet.
Besides supporting gaming and social media, the metaverse will combine economies, digital identity, decentralized governance, and other applications. Even today, user creation and ownership of valuable items and currencies help develop a single, united metaverse. All these features provide blockchain the potential to power this future technology.
How Do You Invest in the Metaverse?
The best way to gain exposure to the development of the metaverse is to invest in the underlying technologies that make it possible. At its core, the metaverse is created using smart contracts and other distributed infrastructure that blockchain projects provide. VanEck provides a straightforward, diversified and easy way to invest in a broad selection of smart contract platforms that enable the metaverse.
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Cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Cryptocurrencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not generally backed or supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional currencies. The value of cryptocurrency may be derived from the continued willingness of market participants to exchange fiat currency for cryptocurrency, which may result in the potential for permanent and total loss of value of a particular cryptocurrency should the market for that cryptocurrency disappear. Cryptocurrencies are not covered by either FDIC or SIPC insurance. Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the use, transfer, exchange, and value of cryptocurrency.
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