Why the meta-verse cannot exist without a blockchain

You might think that the meta-verse will be a bunch of interconnected virtual spaces – the web of the world, but accessible via virtual reality. This is mostly true, but there is also a basic but slightly more cryptic side of the meta-verse that will set it apart from today’s internet: the blockchain.

In the beginning, Web 1.0 was the information highway for connected computers and servers that you could search, explore, and inhabit, typically through a centralized enterprise platform — such as AOL, Yahoo, Microsoft, and Google. Around the turn of the millennium, Web 2.0 was characterized by social networking sites, blogging and revenue generation of user data for advertising centralized gatekeepers to “free” social media platforms, including Facebook, SnapChat, Twitter and TikTok.

Web 3.0 will be the basis of the meta-verse. It will consist of blockchain-enabled decentralized applications that support an economy with user-owned cryptocurrencies and data.

Blockchain? Decentralized? Crypto-assets? As researchers studying social media and media technology, we can explain the technology that will make metaverse possible.

Owning pieces

Blockchain is a technology that permanently records transactions, usually in a decentralized and public database called a general ledger. Bitcoin is the most well-known blockchain-based cryptocurrency. Every time you buy some bitcoin, for example, the transaction is registered to the Bitcoin blockchain, which means that the mail is distributed to thousands of individual computers around the world.

This decentralized recording system is very difficult to cheat or control. Public blockchains, such as Bitcoin and Ethereum, are also transparent – all transactions are available to everyone on the Internet, unlike traditional bank books.

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Ethereum is a blockchain like Bitcoin, but Ethereum is also programmable through smart contracts, which are essentially blockchain-based software routines that run automatically when a condition is met. For example, you can use a smart blockchain contract to establish your ownership of a digital object, such as a work of art or music, that no one else can claim ownership of the blockchain – even if they store a copy on their computer. Ownable digital objects – currencies, securities, works of art – are cryptoactive.

Items such as artwork and music on a blockchain are non-fungible tokens (NFT). Non-fungible means that they are unique and non-exchangeable, the opposite of fungible elements such as currency – every dollar is worth the same as, and can be exchanged for, any other dollar.

More importantly, you can use a smart contract that says you are willing to sell your digital artwork for $ 1 million in ether, the currency of the Ethereum blockchain. When I click on “accept”, the artwork and the ether automatically transfer ownership between us on the blockchain. There is no need for a bank or third party deposit, and if one of us disputes this transaction – for example, if you claimed that I only paid $ 999,000 – the other could easily point to the public record in the distributed ledger.

What does these blockchain crypto-assets have to do with the metaverse? Everything! To begin with, the blockchain allows you to own digital goods in a virtual world. Not only will you own that NFT in the real world, you will also own it in the virtual world.

In addition, the meta-verse is not built by any group or company. Different groups will build different virtual worlds, and in the future these worlds will be interoperable – form the metaverse. When people move between virtual worlds – for example, from Decentraland’s virtual environments to Microsoft’s, they want to carry their things with them. If two virtual worlds are interoperable, the blockchain will authenticate proof of ownership of your digital goods in both virtual worlds. Essentially, as long as you are able to access your crypto wallet in a virtual world, you will be able to access your crypto stuff.

Do not forget your wallet

So what do you want in your crypto wallet? You will obviously want to carry cryptocurrencies in the meta version. Your crypto wallet will also contain digital items that are only available for metaverse, such as avatars, avatar clothing, avatar animations, virtual decorations, and weapons.

What will people do with their crypto wallets? Among other things, shop. Just like you probably do online now, you will be able to buy traditional digital goods such as music, movies, games and apps. You will also be able to buy physical objects in the metaverse, and you will be able to see and “hold” 3D models of what you are shopping for, which can help you make more informed decisions.

Just as you can use your old leather wallet to carry your ID, cryptocurrencies can be linked to real identities, which can help simplify transactions that require legal verification, such as buying a car or a home in it. real world. Because your ID will be linked to your wallet, you do not need to remember login information for all the websites and virtual worlds you visit – just connect to your wallet with one click and you are logged in. ID-associated wallets will also be useful for controlling access to age-restricted areas in the metaverse.

Your crypto wallet can also be linked to your contact list, which will allow you to bring social networking information from one virtual world to another. “Join me at a pool party in FILL IN THE BLANK-world!”

At some point in the future, wallets may also be associated with reputation points that determine the permissions you have to broadcast in public places and interact with people outside your social network. If you behave like a poisonous troll who spreads misinformation, you could damage your reputation and potentially have your sphere of influence reduced by the system. This can create an incentive for people to behave well in the meta-version, but platform developers will have to prioritize these systems.

Great business

Finally, if the metaverse is money, companies will probably also want to play. Blockchain’s decentralized nature will potentially reduce the need for gatekeepers in financial transactions, but companies will still have many opportunities to generate revenue, possibly even more than in today’s economies. Companies like Meta will offer large platforms where people will work, play and gather.

Major brands are also entering the NFT mix, including Dolce & Gabbana, Coca-Cola, Adidas and Nike. In the future, when you buy a physical world commodity from a company, you can also get ownership of a connected NFT in the metaverse.

For example, when you buy the coveted name tag outfit to wear at the real dance club, you can also become the owner of the crypto version of the outfit that your avatar can wear at the virtual Ariana Grande concert. And just as you can sell the physical outfit used, you can also sell the NFT version for others’ avatars to wear.

These are some of the many ways in which metaverse business models are likely to overlap with the physical world. Such examples will become more complex as augmented reality technology increasingly enters the picture, further merging aspects of the metaverse and physical worlds. Although the metaverse itself is not here yet, technological foundations such as blockchain and cryptocurrencies are constantly evolving, setting the stage for a seemingly ubiquitous virtual future that will soon come to a verse near you.

This article is republished from The Conversation under a Creative Commons license. Read the original article.