Metaverse – definition and examples

Impossible to give the definition of the metaverse without mentioning blockchain and the revolution it will bring to Web3.

Blockchain and the Metaverse:

Blockchain technology underpins the metaverse by providing a secure and decentralized infrastructure. Smart contracts, NFTs (non-fungible tokens), and decentralized identity are key elements. Blockchain enables verifiable ownership, security, and management of digital assets within the metaverse.

• Interaction between Blockchain and the Metaverse:

1. Secure and Decentralized Infrastructure:

   The blockchain provides a secure and decentralized infrastructure that is essential for the metaverse. This infrastructure allows for the creation of a digital environment where transactions and interactions can take place safely for everyone. How? The blockchain enables interactions and transactions without the need for a trusted intermediary. It is thanks to it that security, transparency, and verifiability of activities can take place in a metaverse.

2. Verifiable Ownership:

   Blockchain technology enables verifiable ownership of digital assets in the metaverse. Each asset, whether virtual land, digital art, or any other resource, can be represented as non-fungible tokens (NFTs). These NFTs are unique and tamper-proof certificates of ownership stored on the blockchain, ensuring that users truly own their digital assets.

3. Smart Contracts:

   Smart contracts, which are self-executing programs based on blockchain, play a key role in automating transactions and agreements in the metaverse. For example, a smart contract could manage the sale and transfer of virtual land ownership without the need for a third party. This creates efficient and reliable processes, reducing costs and the risk of errors.

4. Decentralized Identity:

   In the metaverse, decentralized identity allows users to control their own digital identity without relying on centralized service providers. Through blockchain, users can prove their identity and attributes securely and privately, which is essential for trust and security in social and economic interactions within the metaverse.

5. Virtual Economy:

   Cryptocurrencies are the driving force behind the virtual economy of the metaverse. They facilitate transactions and exchanges of value between users, whether for purchasing virtual goods, services, or participating in events. The decentralized nature of cryptocurrencies allows for frictionless cross-border transactions, fostering a smooth and global digital economy.

6. DeFi Ecosystem:

   Decentralized Finance (DeFi) can integrate into the metaverse to offer a range of innovative financial services, such as lending, borrowing, exchanges, and yields on digital assets. Users can access these services without the need for traditional banks, opening new opportunities for inclusive finance and asset management in a virtual environment.

7. Interoperability:

   Blockchain promotes interoperability between different metaverse projects and platforms. Through common standards and protocols, digital assets and identities can be transferred and used across various virtual worlds, creating an interconnected and cohesive ecosystem.

8. Community and Governance:

   Blockchain also enables decentralized governance models, where users can participate in decision-making regarding the evolution and management of metaverse platforms. Through blockchain-based voting mechanisms, communities can directly influence future developments, ensuring more democratic and inclusive governance.

In summary, the integration of blockchain into the metaverse creates a robust and secure framework for digital interactions, fostering a dynamic and transparent virtual economy. This paves the way for unprecedented innovations in how people interact, trade, and live in immersive digital environments.

Web3 and the Metaverse:

Web3 is the next generation of the Internet, characterized by decentralized protocols such as blockchain. Unlike Web 2.0, Web3 gives users ownership of their data and assets. Web3 is the underlying infrastructure that supports metaverse experiences.

Cryptocurrencies and NFTs in the Metaverse:

Cryptocurrencies play a vital role in the virtual economy of the metaverse. They facilitate transactions and value exchanges in virtual spaces. NFTs represent unique digital assets stored on the blockchain. In the metaverse, they can represent virtual land, digital art, accessories, and more.

DeFi and the Metaverse:

DeFi (decentralized finance) operates on the blockchain and enables financial services without intermediaries. In the metaverse, it can offer virtual banking services, loans, and yields.

Web3 Games and Metaverse Projects:

Web3-based games and metaverse projects have recently raised significant funds. They aim to create interconnected virtual worlds where players can own assets, trade items, and more.

• Interaction between Web3 Games and the Metaverse

1. Player Ownership and Control:

   Web3 games empower players with true ownership and control over in-game assets. These assets, represented as non-fungible tokens (NFTs) on the blockchain, can be bought, sold, and traded outside the game environment. This allows players to retain their assets even if the game is shut down, creating a more sustainable and fair gaming ecosystem.

2. Interoperability of Assets:

   In the metaverse, assets from different Web3 games can be interoperable. This means a sword earned in one game could potentially be used in another game or virtual environment. This cross-game compatibility is made possible by blockchain standards and protocols, creating a cohesive and interconnected virtual world.

3. Decentralized Marketplaces:

   Web3 games often feature decentralized marketplaces where players can trade NFTs and other digital assets. These marketplaces operate on blockchain technology, ensuring secure, transparent, and tamper-proof transactions. Players can engage in peer-to-peer trading without the need for intermediaries, fostering a robust in-game economy.

4. Play-to-Earn (P2E) Models:

   Web3 games introduce play-to-earn models where players can earn real-world value through their in-game activities. By participating in the game, completing quests, or winning battles, players can earn cryptocurrencies or NFTs. This model transforms gaming from a purely entertainment activity into a potential source of income, blurring the lines between work and play.

5. Governance and Community Involvement:

   Decentralized Autonomous Organizations (DAOs) allow players to participate in the governance of Web3 games. Players can vote on game development decisions, feature implementations, and community guidelines. This democratic approach ensures that the game evolves in a way that reflects the community’s desires, fostering a strong sense of ownership and engagement among players.

6. Persistent and Evolving Worlds:

   The metaverse, combined with Web3 games, offers persistent and evolving virtual worlds. These worlds continue to exist and change even when players are not actively engaged. Events, economic activities, and social interactions in these worlds have lasting impacts, creating a dynamic and immersive experience that mirrors real life.

7. Enhanced Security and Transparency:

   Blockchain technology enhances the security and transparency of Web3 games. All transactions and changes within the game are recorded on an immutable ledger, preventing cheating and fraud. Players can trust that the game environment is fair and that their assets are secure.

8. Funding and Development:

   Web3 games can attract funding through token sales and initial coin offerings (ICOs), allowing developers to raise capital from a global audience. This democratizes the funding process, enabling innovative projects to come to life. Additionally, players can invest in games they believe in, potentially reaping financial rewards as the game succeeds.

9. Virtual Real Estate and Metaverse Integration:

   Web3 games often involve virtual real estate, where players can own, develop, and monetize virtual land. These virtual spaces can be integrated into the broader metaverse, allowing for diverse activities such as hosting events, building structures, or creating unique experiences. This integration enriches the metaverse by adding unique and player-driven content.

10. Social and Collaborative Experiences:

    Web3 games and the metaverse facilitate social and collaborative experiences. Players can form alliances, build communities, and participate in collective activities. These social interactions are enhanced by the persistent and interconnected nature of the metaverse, creating a rich tapestry of human connection and collaboration.

To sum up, if we want to give a quick definition of the metaverse applied to web3 games, we can say that we’re talking about the interaction between web3 games and the metaverse, which offers a genuine revolution in the gaming experience, with a qualitative experience that has truly never been equalled until now.

The synergy between Web3 games and the metaverse offers a unique gaming experience in terms of quality, interactivity, interoperability, participation in decentralized governance (i.e. involvement impossible outside the metaverse) and unique economic opportunities such as “play to earn”, which becomes even more effective. This synergy creates a dynamic, immersive virtual world where players can live, work, play and thrive in new and innovative ways.

Examples of metaverse projects:

1. Decentraland

Platform: Ethereum Description: Decentraland is a virtual world built on the Ethereum blockchain where users can purchase, develop, and trade virtual land parcels (known as LAND). It offers a decentralized environment where users can create, experience, and monetize content and applications. The native currency, MANA, is used for transactions within the world.

2. The Sandbox

Platform: Ethereum Description: The Sandbox is a decentralized gaming platform where users can create, own, and monetize their gaming experiences using SAND, the platform’s utility token. It offers tools like the VoxEdit for creating 3D assets and the Game Maker for building and sharing games, all within a virtual world consisting of individual land parcels.

3. Axie Infinity

Platform: Ethereum, Ronin sidechain Description: Axie Infinity is a blockchain-based game where players collect, breed, raise, battle, and trade creatures called Axies. The game incorporates a play-to-earn model, allowing players to earn tokens like Smooth Love Potion (SLP) and AXS through gameplay. It has a vibrant economy where Axies and in-game assets can be traded as NFTs.

4. Cryptovoxels

Platform: Ethereum Description: Cryptovoxels is a virtual world and metaverse built on the Ethereum blockchain. It features a voxel-based environment where users can own land, build structures, and create interactive experiences. The platform supports virtual reality (VR) and can be accessed through web browsers.

5. Somnium Space

Platform: Ethereum Description: Somnium Space is an open, social, and persistent virtual world. It offers a VR experience where users can buy land, build or import objects, and interact with others. The platform supports a variety of activities, including gaming, social events, and virtual commerce.

To conclude our definition of the metaverse, let’s take a look at its future.

What does the future hold for metavers?

The metaverse is set to revolutionize the way we interact online, creating new economic, social and cultural opportunities.

In the future, it could also become a major tool used in real life, integrating aspects of work, play, education and commerce, while evolving thanks to active user participation and technological innovation.