Have you heard of? Do you know what they stand for? You might already be familiar with CryptoKitties that disrupted Ethereum’s ecosystem or Monero’s XMR coin which was the first currency to solve the anonymity problem in Blockchain. But are you aware of their latest projects impacting our daily lives?
When Facebook first announced that it was making moves towards the blockchain and virtual reality space, the naysayers like myself came out in full force. And I wasn’t alone; everyone had a go at this giant – from people within the blockchain industry to established tech giants like Google, Twitter, Apple… you name it. Everyone had reservations about Facebook’s entry into the landscape.
The concept of the virtual surrounding us is not new — it’s been here for some time and will be around in the future too. The use and proliferation of technology have pushed it to newer heights, giving rise to a wealth of futuristic payment and trading options.
Ever since Facebook has revealed its plan for a digital asset, you’ll often hear people saying that it is the right time to get into crypto.
Why Metaverse Matters
Imagine attending a Taylor Swift concert in Los Angeles without having to book tickets and be present there, in flesh and blood. But can’t we just view the concert online, with Web 2.0 helping us with connectivity. While this is entirely possible now, there are places in the online world that have retained their physical presence and still exist there. Why? Is it because of the fear of technology? Something else? Why do people still prefer traditional ways of investing?
Blockchain technology has also helped entrepreneurs, especially in the online gaming space, to cater to a much larger user base and open up their virtual marketplaces to a global audience. This is where tokens come in, they act as the transactional entities relevant to these virtual marketplaces. Tokens can be used by players, gamblers and other participants within the metaverse to purchase and invest in different assets or services offered on the platform.
This is where NFTs come into the picture. Many digital assets today belong to a particular metaverse or are tied to one Gala, Mana, Axie Infinity. While these can be traded in various ecosystems, it is important to get the NFTs of these assets when there’s a switchover. In short, they can be a connecting link between Metaverse and the Real World.
Why NFTs Matter in Metaverse Space
Imagine your favourite celebrity singer’s unedited portions of his popular song in a virtual space, where NFTs supporting his songs are flooding the market. And once that happens, he throws in a complimentary meet-and-greet session each year to establish the real-world connection. It’s like a dream come true for any of his fans.
And what’s interesting is that leading crypto exchanges have taken an aggressive stance in listing these Metaverse and NFT-relevant coins, thereby pushing the use cases through with urgency.
How DeFis Help in Metaverse
If you happen to find yourself in the Metaverse, Decentraland for now, and suddenly you feel like purchasing a piece of the virtual land. Well, you will turn to MANA, right. But then, how do you purchase MANA tokens in the first place? Especially if you do not want to play with fiat currencies and the intermediaries such as banks.
That’s where DeFi Networks comes into being, offering a wide range of possibilities that includes support for native token trading across blockchains, Smart Contract-based lending and staking solutions, Peer-to-Peer P transactions, and much more.
Some people might argue that metaverse, NFTs, and DeFi are different types of crypto-assets. I believe they are actually connected to one another, and thus completely different forms of crypto-assets could share the same definition. For example, to participate in a Metaverse, you can purchase NFTs or stake your tokens to earn more tokens. To do that on the blockchain, you will have to obtain your crypto from an exchange platform like IOS Token.
To wrap up my first post, I would like to state that metaverse, NFTs and decentralized finance are different use cases for blockchain technology.