There Will be no Metaverse Without Blockchain

Apr 23, 2023

The Metaverse doesn't care that Facebook's (or Meta) announcements on it have been a complete failure. If you've seen what generative AI can do with images today by simply interpreting text prompts, it's not hard to imagine what advanced generative AI and language learning models will be able to do once we connect them to 3D and animation software such as the incredibly powerful Unreal Engine 5, which allows creators to generate games with this level of realism (yes, that's a video game). Clearly, a large portion of the Metaverse is bound to be generative in nature. We will say or write what we want AI to generate, and we will sell ownership titles, rights of use and assets from within these creations thanks to blockchain technology. 

Blockchain at the Heart of the Metaverse Economy

The Metaverse won't be a single shared digital space, such as Horizon Worlds. There will be closed virtual reality platforms (Meta's, Apple's, etc) and there will be open ones, the same way there are now blockchain networks and countless open source resources online. These platforms will be where go to experience the Metaverse, meaning the act of entering a fully 3d digital world that "substitutes" reality while we are there.

Some of these platforms will support one digital world, others will support any number of them. As mentioned earlier, an unprecedented creator economy will flourish around this ecosystem thanks to AI capabilities. The same way it's possible now to create imagery of the highest quality for free and with zero skills, we will be able to apply the same creativity to virtual worlds.  We will be able to prompt an AI to generate virtual experiences, eg: "Recreate the Allied landing on Omaha Beach in first person, in the style of Saving Private Ryan".

People will build entire worlds starting from prompts as simple as this one, so the Metaverse will be all of these worlds combined, filled with digital assets, experiences, and possibilities. Blockchain technology will be crucial to the realization of this vision by providing a secure and transparent foundation for the Metaverse's digital economy. 

Blockchain technology will enable not only virtual asset tokenization, including non-fungible tokens (NFTs) representing unique digital items, it will also be a key component for instant payments and asset management. Smart contracts, another crucial aspect of blockchain technology, will enable secure transactions and agreements between users in the Metaverse. They will facilitate the seamless flow of royalties, renting virtual spaces, buying virtual goods and services and more.

Image of a man with a virtual reality headset

NFTs and Cryptocurrency Powering the Metaverse Experience

NFTs and cryptocurrencies will play a pivotal role in the development and operation of the Metaverse. As mentioned earlier, NFTs represent unique digital assets that can be owned and traded within the Metaverse. They will be essential for creators and users alike, enabling them to monetize their work and acquire valuable virtual items.

Cryptocurrencies, on the other hand, will enable trade in the Metaverse, allowing users to seamlessly transact with one another. They offer several advantages compared to traditional currencies, such as faster transaction speeds, lower fees, and increased privacy. Moreover, cryptocurrencies are inherently global, making them an ideal choice for a borderless virtual world like the Metaverse.

By combining the power of NFTs and cryptocurrencies, the Metaverse will provide users with unparalleled opportunities for creativity, collaboration, and commerce. From artists selling their virtual creations to gamers participating in play-to-earn ecosystems, the Metaverse will unlock new revenue streams and reshape how we engage with digital content.

The Metaverse has the potential to revolutionize our digital lives, offering limitless possibilities for creativity, interaction, and commerce. Blockchain technology, with its ability to provide secure, transparent, and decentralized foundations, will be an essential component of this evolution. As we continue to explore the potential of the Metaverse, the integration of blockchain, NFTs, and cryptocurrencies will be crucial in bringing this vision to life.

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