Table of Contents:

· What is Metaverse?

· How does Metaverse work?

· How did Metaverse start?

· How are tokens used in Metaverse?

· Why is Metaverse important?

· What might happen in the future?

· Closing thoughts

As the tech sector unlocks new milestones with each passing day, the connection between the financial, physical, and virtual worlds becomes stronger. At the moment, people from different geographic locations can communicate and even transact without leaving the comfort of their homes or offices.

However, unlike the current 2D version of the internet, the next version will be based on immersive 3D experiences. This means activities like learning and earning a living will soon shift to virtual setups. These virtual worlds form the metaverse.

What is Metaverse?

In simple terms, the metaverse is the next iteration of the internet. It will comprise multiple intertwined virtual worlds that allow users to engage in daily activities like socializing, working, gaming, and meeting, among others. The metaverse will let people access all these features without moving from their favorite couch.

At the moment, the metaverse is far from taking its projected form. However, platforms such as The Sandbox and Decentraland feature some metaverse elements. The Sandbox and Decentraland are gaming platforms and have proven the benefits of gamers living in a virtual world.

For instance, the platforms feature virtual economies, where gamers can purchase or sell in-game items in the form of non-fungible tokens (NFTs) and get real-world value. This system is superior to the current version of video games, where gamers lose all the value invested in a game once they stop playing.

How Does the Metaverse Work?

With the metaverse representing the next version of the internet, it will likely run on the blockchain, among other disruptive technologies. Additionally, the metaverse will likely use cryptocurrencies for payments because they are decentralized, interoperable, and can process cross-border payments much faster than the traditional financial system.

The metaverse will tap Augmented Reality (AR) and Virtual Reality (VR), allowing users to interact with one another through digital avatars. At the moment, people can enjoy metaverse-like experiences through VR headsets. However, the metaverse will take this a notch higher.

Meta CEO Mark Zuckerberg envisions a future where people can teleport instantly as a hologram to different places. According to him, the metaverse will create more opportunities regardless of where someone lives. He believes that the metaverse would allow people to spend more time on things that matter to them, all while reducing their carbon footprint.

How Did the Metaverse Start?

While the metaverse only gained popularity in recent years, the term is three decades old. Neal Stephenson first used the term metaverse in 1992 in his science fiction novel, Snow Crash. Stephenson describes the metaverse as an online world, which the book’s characters can access by wearing goggles.

While Stephenson’s book is purely fictional, the metaverse draws inspiration from the book. Although the book once seemed like fiction, the metaverse might soon become a reality.

Large organizations like Meta - formerly Facebook - are spearheading the metaverse’s development. Other firms involved in the development of the metaverse include Microsoft, Animoca Brands, Roblox, and Epic Games.

However, it is worth noting that although leading corporations have big metaverse ambitions, the metaverse will not belong to a single entity. By tapping blockchain technology, which is permissionless and open source, the metaverse will allow anyone to build on it.

How Are Tokens Used in Metaverse?

As aforementioned, cryptocurrencies will most probably serve as the currency of the next version of the Internet. Each virtual world will have a native currency.

These tokens will enable the transfer of value among people in virtual economies. For instance, a user can use The Sandbox (SAND) to purchase virtual land in The Sandbox metaverse game.

By using digital assets, metaverse users can prove ownership by providing transaction details after purchasing items in a specific environment. The blockchain’s immutability ensures that transactions are tamper-resistant, minimizing fraud in the metaverse. An example is the use of NFTs to represent ownership of virtual property like land.

Digital assets also enable effective governance of metaverse platforms. In real life, stakeholders can have voting rights in a company, and elected leaders implement changes that are voted in. The same can happen in the metaverse once token stakers vote on changes they would like to see in a particular virtual world.

Why is Metaverse Important?

The metaverse will offer everyone endless possibilities provided they have an internet connection. By providing a shared environment and economy for all people, the metaverse enables the buying and selling of products and services regardless of geographical limitations.

The metaverse will also offer businesses new channels to generate revenue. For instance, a fashion house can set up a metaverse shop, and people will purchase clothes for their avatars. All businesses in the real world can thrive in the metaverse, seeing as it will function as an alternate virtual world.

What Might Happen in the Future?

As technology advances, the metaverse will continue taking shape. When fully operational, the metaverse will allow people to interact at levels that currently seem fictional. For instance, fans can talk to their favorite stars directly. Moreover, they can instantly visit locations which they could not reach in real life.

The metaverse will also improve the experience for remote workers. While remote workers can currently attend meetings through video conferences, the metaverse will allow them to sit in the meetings without moving from the comfort of their homes. This means all members of an organization can meet in a virtual office and share ideas without leaving their physical locations.

Closing Thoughts

As blockchain, VR, and AR technologies continue catching on, it is evident that the world will inevitably move to an era where human interactions increasingly rely on virtual platforms.

This demand creates a massive market for the metaverse. The metaverse’s possibilities are endless, something that has seen experts predict that the industry might be worth as much as $13 trillion by 2030.

Source: https://www.kucoin.com/blog/metaverse-where-are-we-now-and-how-does-the-future-hold