What is Metaverse and how does it work? Concepts, Meaning and Examples

The metaverse concept covers many different aspects – online gaming, augmented reality, social media, cryptocurrencies. People can use virtual space to interact with each other in innovative ways. The online digital universe allows you to buy, invest, earn money with your creativity and much more. The metaverse tokens are generally used as a method of payment for goods and services. These are units of digital currency that can be spent not only on the game they are linked to (unlike traditional games), but also on exchanges or other platforms.

In this post you will know what is the metaverse and how are these virtual spaces important for development in the cryptocurrency world.

Metaverse Meaning

The very concept of  "metaverse"  appeared a long time ago and is used to refer to it as science fiction (first encountered in Neil Stevenson's 1992 novel "Avalanche"). However, it's important to remember that cell phones and many other modern things were once fantastic too. That's why experts take the potential of the metaverse so seriously.

Metaverse is an augmented and virtual reality network on the Internet.

Some of its components are already used in popular video games. The main features of such universes  are the symbiosis of the virtual and physical world, a fully functional game economy, the ability to move around the world at your own discretion and the purchased goods themselves. Even though the metaverse isn't as epic as it is in science fiction, it's still one of the real ways to change the way humans interact with the digital world.

Today, platforms offer many opportunities for content creators, artists, athletes, gamers, especially with the help of  NFT tokens . The economics of digital art and collectibles have changed dramatically in the past year. For many, these platforms have become a place to exchange, work, communicate and play. Blockchain and decentralized applications play a big role in this.

Perspectives and expert opinion

Well-known cryptocurrency investment firm Grayscale has published a report  on the topic of the metaverse, one of the conclusions of which is that in the coming years this industry will reach a volume of US $ 1 trillion or more. The report was prepared by analyst Matt Maximo and research director David Greider.

The opinion of the experts, reflected in the report:

  • Metaverse platforms with integrated DeFi services, NFTs, cryptocurrency tokens, and decentralized governance attract users primarily through creating a unique online experience.
  • In a year and a half (from early 2020 to mid-2021), the user base with active wallets in the metaverse grew 10 times.
  • Metauniverses are at an early stage of development compared to other areas of Web 3.0 and Web 2.0, but the speed of their growth suggests it could become popular in the next few years.
  • In Q3 2021, the inflow of funds from venture capitalists into the industry was $$ 1 billion, i.e. more than 12% of all funds received by the crypto industry.
  • The sector will continue to grow in the event of an increase in the following factors: an increase in player spending on a virtual hobby, an increase in time spent on games, a psychological restructuring of regular pay games to free games, Web3 innovations.
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In 2020, the total revenue from virtual games was US $ 180 billion, while the pay-to-play sector generated around US $ 40 billion. According to experts, by 2025 the industry will be able to raise more than 400 billion, mainly through in-game spending.

Examples of the best projects with metauniverses

1. Axie Infinity

Axie Infinity has two main game modes. Adventure mode gives you the opportunity to fight with computer intelligence, you have to go through the levels one by one. Each victory brings experience points. Once you've pumped a pet enough, you can switch to PVP mode, where rewards are paid in SLP tokens, which are needed to breed pets.

The battle process itself is a cross between a card game and a “Pokémon” and ”. In each round, players are randomly assigned cards from those available to their pets. In a match, the objective is to survive three enemy attacks. Each card has an attack and defense rating and other possible effects.

2. Decentral and

Decentraland is a blockchain-based virtual reality platform where players can explore territory, craft items and monetize their creativity, use 3D technologies in construction. The project had several stages; for example, after the Bronze Age, it moved to the Iron Age and added new interactions and payments with the MANA token.

Decentraland aims to recreate a free market economy in virtual space. Three main components of the metaverse: fully customizable avatars with hundreds of free clothes and accessories (you can also buy paid items); constructor to create objects and entire worlds; A store offering user-created objects in NFT format.

3. The Sandbox

The essence of The Sandbox game is that you can use special software to edit and create objects: creatures, clothes, vehicles, buildings. Items are added to the blockchain as an NFT and can be sold on the Sandbox Marketplace or secondary markets. To create complete objects and games, you don't need to know any programming languages, everything is intuitive.

Sandbox is played on a large split map; each site represents an NFT. You can buy a lot at a fixed cost and then upgrade it with items bought from the market, or create it yourself and sell it for more. Plots can be combined to form entire areas.

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4. Alien Worlds

Like many other blockchain games, Alien Worlds lets you explore a vast and beautifully rendered virtual world. This project differs from its competitors in a rather complex and well-structured decentralized economy, including in-game staking and other DeFi functions. This is one of the reasons for the rapid growth of the TLM token and the increasing attention of investors to it.

While TLM tokens can be used in the Alien Worlds metaverse, they are also very useful outside of it, not just on players. Basically, it is an asset to be managed. By owning a TLM, you can vote for the DAO (Decentralized Autonomous Organization) to change the game environment. Also, with the help of TLM, NFTs are purchased, which are necessary for gameplay. Alien Worlds actively attracts new players through marketing campaigns and active communication with players on social media.

5. Enjin

Enjin Coin

The Enjin network provides the foundation for an interconnected blockchain gaming system. Many cryptocurrency games want to build a metaverse, or at least create their own token, but they face difficulties. Enjin strives to remove obstacles and facilitate the implementation of cryptocurrency tokens or NFTs. Developers have created many SDKs (kits for creating applications and elements, as well as their implementation).

Each platform or currency launched with Enjin raises the price of the ENJ token, as it is used as a means of payment in the system. Overall, the project can significantly affect the cryptocurrency field as it facilitates the creation of blockchain games and meta-universes. Enjin takes over the entire economy of the game, and the developers can focus on creating the game itself.

Where to buy and store metaverse tokens

To buy tokens used in virtual universes on the blockchain, you can use the following methods:

It is possible to buy tokens for fiat currency, as well as in pairs with BTC, ETH, BUSD, USDT and other cryptocurrencies or stablecoins. Decentralized exchanges do not support fiat.

Metaverse frequently asked questions

What is a metaverse?

In the popular scientific sense, it is a virtual analogue of the real world, where people can interact with each other online, performing most social or work functions without meeting in person. In the context of cryptocurrencies, metauniverses have become blockchain games where you can trade, earn and communicate.

Who created the metaverse?

The writer Neal Stephenon created the concept of metaverse still in the 1990s, when he wrote his science fiction novel “Snow Crash”, from 1992. Now, almost 30 years later, this same author is faced with the popularization of the concept thanks to the new ambitions of Facebook.

Why do these platforms need their own tokens?

As platforms operate on the blockchain, native tokens help them facilitate transactions between users, including the sale/buy of NFTs and decentralized governance:

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This is a new way to interact and generate additional income. Users quickly appreciated these benefits.

 What do analysts think about the sector's prospects?

The outlook is positive – the injection of resources into the sector is actively growing, in a year and a half this number has grown several times, and development is not intended to slow down.

What affects the growth of metaverse cryptocurrencies?

First, the development of its native platform affects… When developers release new features, partner with other big-name projects, or expand the use of a token, the asset responds with growth.

How to choose a promising metaverse?

Look at existing projects, how they develop, what attention they pay by major players in the cryptosphere. For example, support from Binance or another major exchange is a good sign. 

What Influences Metaverse Cryptocurrency Rate Growth?

Firstly, it affects the development of your native platform. When developers release new features, partner with other big-name projects, or expand the use of a token, the asset responds with growth.

How to choose a promising metaverse?

Look at existing projects, how they develop, what attention they pay by major players in the cryptosphere. For example, support from Binance or another major exchange is a good sign. 

What Influences Metaverse Cryptocurrency Rate Growth?

Firstly, it affects the development of your native platform. When developers release new features, partner with other big-name projects, or expand the use of a token, the asset responds with growth.

How to choose a promising metaverse?

Look at existing projects, how they develop, what attention they pay by major players in the cryptosphere. For example, support from Binance or another major exchange is a good sign. how they are developing, what attention is given to them by the main actors in the cryptosphere. For example, support from Binance or another popular platform is a good sign. how they are developing, what attention is given to them by the main actors in the cryptosphere. For example, support for Binance or another popular exchange.

Conclusion

The metaverse's popularity and financial relevance is growing rapidly, with the help of Facebook's rebranding to  Goal last month. Zuckerberg's metaverse isn't the only one on the road — well-known companies are starting to look at the concept, and several experts are convinced this is the next big investment topic. The blockchain and cryptocurrency meta-universes are moving beyond virtual and augmented reality to engage people with financial and entertainment incentives. Cryptocurrency is a key part of the Metaverse industry as it allows ownership of digital assets and ownership creates incentives for investment.