The year 2020 brought several buzzword moments in the era of new-age technologies – Metaverse and Non-Fungible Tokens (NFTs). The hype around these terms reached its zenith with the announcement of Facebook building its own metaverse. However, the metaverse is still not a reality yet but it could open the next chapter of the internet. Metaverse focuses on the idea of extended reality – combining augmented and virtual reality technologies to drive businesses in the digital world.
Since metaverse is predicted to take new planes of experiences in virtual reality, it is becoming a lucrative industry in itself. From social media to gaming and real estate, metaverse platforms are acquiring billion-dollar investments from across the globe. Its possible innovations are allowing the stakeholders to build exclusive virtual realms, promising the users an augmented reality experience. Furthermore, metaverse exceeding the physical reality will allow users to participate in the digital economy.
Immutability of blockchain technology
Since hacks and data breaches occur quite frequently, it has become imperative for people to expect a highly secured platform, spared from the possibilities of hacks. In the ongoing technology world, blockchain has emerged as one of the biggest disruptors in the accelerated adoption and growth of the digital economy. With distributed storage features, blockchain technology has proven the platforms to be unhackable and immutable.
Metaverse is designed to boost the digital economy and it is critically important for a virtual platform to ensure secure transactions. It is with the characteristics of Blockchain technology, any individual or group of stakeholders participating in the virtual environment can get complete assurance in terms of transaction security and transparency. It is with the help of blockchain that instantaneously confirms information as well as keeps crypto assets safe and protected.
Cryptoassets facilitate transition
Crypto assets or cryptocurrencies are already here to power the metaverse economy. However, to make metaverse a huge success, it requires transactions to be completed instantaneously and on an on-demand basis. Considering the innovations in metaverse platforms, blockchain and crypto assets can help enable these transactions. Further with crypto assets, individuals in the virtual environment can have a safe, secure and reliable payment method, allowing the users to conduct transactions in a traceable and real-time manner.
The trend of online payments has already developed in the past decade, even without the implementation of blockchain. People are already engaged and transacting through digital wallets in a digital economy. Further, with the growing blockchain platforms, the trend of crypto wallets is going to play a major role in carrying crypto assets in the metaverse as well. Apart from this, the crypto wallet is also going to hold metaverse only digital assets including digital avatars, avatar clothing, animations, accessories, etc.
Embracing NFTs in a big way
The conceptualization of metaverse has led to the popularity of NFTs. According to the facts – NFTs have become a $41 billion market in 2021 with projections to expand to $80 billion by 2025. The developments in metaverse are going to promote the growth of DAOs, crypto assets and NFTs to shape up a decentralized digital economy. With digitally signed collectibles, NFTs have become a unique source of revenue for artists, celebrities and content creators.
The rise in the popularity of NFTs has been the result of the connection between metaverse and NFTs. The virtual environment i.e. Metaverse allows users to create, sell and trade items digitally in the form of NFTs. Considering the NFTs’ adaptability in India, many popular celebrities including film stars and sports enthusiasts are moving to NFT trading. Furthermore, India is already the home to 360 million online gamers that are continuing to grow with a projection of 510 million in 2022. This presents a perfect market for NFTs to acquire online gaming space in India.
Final thoughts
Metaverse is still at a nascent stage in India and yet emerging at a fast pace. But the underlying truth to facilitate the full functioning of the metaverse is that blockchain, crypto assets and NFTs are going to play a prominent role to realize the full potential of the virtual space. The need to create a transparent payment channel for conducting secured transactions will also push the potential of metaverse in boosting the digital economy.
(Serge Gianchandani is CEO & CPO of MetaMall-VR Shopping, Lifestyle, and Experience Zone)
