Why the Metaverse Needs Crypto and NFTs

The metaverse is shaping up. It’s a slow process. However, building doesn’t stop. There are metaverses owned by large companies. On the other hand, there are metaverses built on blockchain. They are not the same.

What are the differences? Why do we need crypto and NFTs? These are good questions. So, let’s find out what the answers are concerning the metaverse.

What Is the Metaverse?

The metaverse is a collection of virtual worlds. Various big companies own some. For example, Epic Games or Meta. Others have decentralized ownership. For instance, Otherland or The Sandbox. That’s how most people see it.

This contrasts with Punk6529’s view. He is active on Crypto Twitter and builds a part of the metaverse. He sees the internet as the metaverse. According to his thread, it is the most abstract layer. However, it has two distinctions.

• The visualization layer of the internet will get better over time.
• This results in digital objects becoming more useful and more important.

The visualization layer of the internet will get better over time.

Global video conferencing is now a standard. Catapulted into our existence due to the Covid-19 pandemic. Or how about 4k movies? 

Punk6529 predicts that we will have a functional extended and mixed reality in a decade. That is when there is a pair of glasses available with new functions. They’re small and light in weight, just like normal glasses. However, they allow you to switch between three modes. These are normal, augmented, and virtual reality.

Combined AR/VR glasses will become easy to carry. Currently, they look like those below. On the left, a bulky mixed AR/VR viewer. On the right, AR glasses.

Source: Qualcomm

He thinks that we will spend most time in AR rather than VR. You can now view social media notifications in your glasses. Plus, many other functions. Instead of video calls, you can teleport yourself. For example, into somebody’s virtual room for a meeting.

VR will not play that much of a role, only on occasion. He sees our lives in AR also as an improvement to quality of life, not a reduction. Spending less time on a screen, but instead a more natural UX (user experience). As a result, remote work will almost become a standard.

He also sees 3D spaces improving on our computers. This will take around 10 years in his view.

Digital objects will become more useful and more important.

He predicts changed human behavior on the internet. Just like social media did. He thinks that metaverse experiences will do the same. As a result, he believes that we make influential decisions now. These will shape the metaverse in 10 years’ time.

Punk6529 says that digital objects will impact hundreds of things. For example, avatars (2D and 3D), art, schoolwork, or 3D virtual spaces.

Source: Pixabay Riki32

This leads to the most critical question.

Who Stores the Definitive Ownership Records Of Digital Objects?

Is that a “company database” or a blockchain? With a company database, we have the same issues as with Web 2. Or even worse, as Punk6529 argues. In essence, these companies have control over who can use their service. If you’re on a blacklist, that is the end of your exercise on that platform.

So, that’s why we don’t want the metaverse hiding behind an API key. Combined with a terms of service agreement, it is even far worse. 

For example, Meta plans to take as much as 47.5% of the revenue from each metaverse object.

There’s also a fear factor. It’s scary that they can ban you based on some algorithms. Or by a random customer service rep. Facebook and Twitter are also not capable of controlling fake accounts. Let alone stop them. Or how about the associated fake news?

Another factor is privacy. AR involves cameras entering your private spheres. Are you happy with a privacy policy by these companies? The next thing is that hackers will also have a field day with this new technology.

NFTs and Crypto to the Rescue

NFTs and crypto support innovation and interoperability. With open protocols, there are no control issues anymore. The ERC-721 or ERC-1155 standard allow us to integrate digital objects at will. The future will see hundreds of thousands of applications. In contrast to the dozen or so applications we have currently.

So, maybe you think that storing digital info in an NFT is not the answer. However, Punk6529 asks which company’s database should store them and why is that better? A legit question if we look at the above samples of control, fear, and so on.

He sees U.S. and EU politicians vaguely identifying the problems. The issue is that they don’t accept the solution. Instead, they seem to dismiss this solution.

At the same time, it’s blatantly obvious what this solution is. It allows for user-owned assets and identity. The place to go to are public blockchains.

For money, we have BTC or crypto in general. For digital objects, there are NFTs. As a result, he predicts a massive future digital economy. Without losing physical places like restaurants or hotels.

His view of future policy building includes these two options.

• Encourage development of public blockchain-based systems. For instance, for digital assets/economies (easy to do).
• Pour money into open-source visualization hardware. Possibly harder to do.

Source: Pixabay TheDigitalArtist

Conclusion

The metaverse opens hundreds of options for a new, digitalized world. However, this world should not be under the control of big companies. Punk6529 makes a strong case for blockchain technology as the way forward. This involves crypto as money and NFTs for digitalized objects. Open-source and supportive legislation. This is what the metaverse needs.

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