When crypto meets the metaverse

The reason why the metaverse has taken off, especially in the last two years, is definitely related to the explosion in the NFT market and the latest rumble in the crypto sector.

This has given the metaverse the opportunity to expand quickly, and create a real economy around it.

What is the metaverse and what is its relationship to crypto?

The metaverse is still something many people do not agree on when it comes to meaning and definitionbut the first characteristics are beginning to emerge.

They are three-dimensional spaces where users move freely using avatars to play, create, work and even do business deals.

Virtual rooms can be created by users themselves who make them available to other users.

Cryptoand sometimes fiat currencies, can be used.

Underlying virtual spaces are compatible technical standards, protocols, interoperability, digital ownership, blockchain technology and laws governing their use.

Virtual real estate: can you invest in the metaverse?

The answer is yes: countries in the metaverse are the new way to invest in the digital world, especially with crypto.

The research firm specializing in blockchain, Chain analysisreported that virtual real estate prices grew 879% between September 2019 and March 2022. This was the period when Bitcoin yielded less than half, 362% (after the latest collapse, as of July 1, 2022, it fell to +98%).

According to Chainalysis’ report, purchasing a virtual space in the metaverse via crypto or cryptocurrency will gain access to some immediate benefits and others visible in the future.

By purchasing lands in the metaverse, you can take advantage of video content, images, single-player or multiplayer in-game activities, and events.

What the metaverse will be able to offer is partly something imaginable even in future scenarios: the spaces bought in the metaverse can certainly be rented and augmented reality tools, such as VR viewers, can be added.

Today, however, the majority of projects are in virtual reality with few links to the real world.

As far as the real estate sector i metaverse is concerned, we start to see differences related to the price field. According to Chainalysis, it all stems from the platform tying itself to the metaverse: real estate on the Ethereum blockchain expects much higher prices than other crypto products like Solana.

The reason would stem from the fact that most Ethereum-based metaverses have recently integrated with Polygon, Ethereum’s sidechain competitor to Solana in both cost and speed performance.

One report noted:

“Since the metaverse is such a nascent space, the long-term value of blockchain-based virtual real estate depends on a number of external factors.”

“While most of these factors are difficult to predict, we believe a couple of them may be,” the report states, “the possibility that AR/VR systems may be more interoperable or proprietary and of the “pace of adoption of new information technology.” ”

Microsoft, Meta, Google and other technology companies are implementing frameworks to form experiences in the metaverse, but it is unknown whether the metaverse realities will be unique systems or integrated with each other.

Is it possible to buy NFTs and/or cryptos related to the metaverse?

Most existing metaverses, such as Decentraland and The Sandbox, have their own tokens that power the virtual world economy.

These tokens can be purchased on the major centralized exchanges (CEX) where they are supported, or traded for other cryptocurrencies using decentralized exchanges (DEX).

In addition, each asset in the metaverse is represented by an NFT. Each digital asset can be purchased on metaverse’s dedicated marketplace, if any, or on the secondary market by referring to platforms, such as OpenSea, Magic Eden, etc., where they are listed.

How are NFTs purchased for the crypto metaverse?

To be able to proceed with one or more transactions, it is necessary to synchronize the wallet: in this way, the platform will be able to verify the presence of the necessary amount of crypto to be able to buy.

The most popular wallets are Coinbase, MetaMask, Phantom and Trust Wallet.

NFTs in the metaverse

Since these are blockchain-based realities, it is inevitable that NFTs will find various applications within the metaverse. In fact, each value here is represented by a token, and users have the ability to buy, exchange, use and/or show off their NFTs, share them with the community.

What is a wallet

A wallet is a virtual wallet for depositing, sending and receiving digital currency, such as Bitcoin, Dash, Ethereum, etc.

There are several types. The most popular are hardware that enjoys extreme security, such as Ledger; browser extensions, which are very easy and intuitive to use, such as MetaMask. And finally desktop, like Exodus, or in-app format for smartphones.

How to open a wallet on MetaMask to buy NFTs

MetaMask is the most popular free wallet for buying NFTs: it is multi-chain in that it supports different blockchains, such as Ethereum, Polygon, Fantom and BNB Chain. It also allows interaction with almost all dApps. Its popularity is mainly due to its ease of use, as it is a browser extension.

To open ityou need to open the MetaMask page and follow a few steps: just add the extension to Chrome and then create a password and a seed phrase, a secret backup phrase.

Once the wallet is set up, one can deposit a sufficient amount of crypto, usually Ether (ETH) to then purchase NFTs.

It also supports on-ramp for automatic fiat-crypto currency conversion using third-party services offered by Coinbase Pay, Wyre, Transak and MoonPay.

Only after authorization of the connection between the wallet and the marketplace will it be possible to buy NFTs via MetaMask, based on prices set by the seller or by bidding via auction.

Once you have selected the NFT to buy, click on “Make Offer” or “Buy Now” to proceed to the checkout stage.

MetaMask will then request a transaction signature to complete the exchange.

At this point, ownership of the token will be uniquely tied to the address with which the transaction was completed. All assets held will be publicly visible by accessing the “scans” of the relevant blockchain.