What is the metaverse and what does crypto have to do with it?

The metaverse has become extremely popular since Mark Zuckerberg announced that he would change the name of his company, formerly known as Facebook, to the overarching Meta. The company intended to focus entirely on the development of its own metaverse. However, the concept of the metaverse was conceived much earlier, in the 1990s.

In recent years, various people and companies have been engaged in developing the metaverse on the blockchain. Below, we explain what the metaverse is and what crypto has to do with it. After reading this article, you’ll also know how to buy metaverse crypto coins if you want to invest in the metaverse.

What is the metaverse?
The metaverse is an online world that anyone can join. You could compare it to a ‘server’ as used in gaming terms, where different players can simultaneously play a game. Some metaverses, however, go a step further. You need a VR (Virtual Reality) and AR (Augmented Reality) headset to enter the metaverse.

VR and AR are technologies used to create a computer-generated visualization in reality. By wearing such a special headset, it feels like you are in another world. This online world, of course, does not actually exist. The headset and consoles allow you to navigate through this world.

In the metaverse, different people can be present at the same time. You can see the real-time movements of others and talk to them, as VR and AR headsets come equipped with a speaker and microphone. Each user has a so-called ‘skin,’ which represents the body of someone present in the metaverse. Sometimes, the visuals are so well done that distinguishing the online world from the real world becomes challenging.

Is the metaverse owned by Facebook and Apple, or how does it work?
The metaverse is a concept that was devised in the 1990s. Tech companies have been working on its development for years. In 2021, the term ‘metaverse’ gained a lot of recognition when it was revealed that Facebook and Apple were working on their own metaverses. Facebook even changed its parent company’s name to ‘Meta’ because it wants to focus entirely on this market.

However, the metaverse does not belong to Facebook, Apple, or any other company. The metaverse is the designation of the concept, and anyone can develop their own metaverse. Meta has developed its own metaverse called Horizon Worlds. There are rumors that Apple is working on developing a metaverse, but nothing has been officially confirmed yet.

What can the metaverse be used for?
The metaverse can be used for various applications. It is possible to play games with other users, hold meetings or work, throw a party, or attend a concert. The possibilities are nearly endless.

What does the metaverse have to do with crypto?
Anyone can develop their own metaverse, including blockchain developers. In recent years, several metaverse projects have been developed on the blockchain. A blockchain must support smart contracts, so developers have the potential to create and run a decentralized application (dApp) on the blockchain. Ethereum is a popular blockchain for dApps but suffers from scalability issues, leading to high costs for users and long wait times for transaction processing.

Within a metaverse that runs on the blockchain, users can also take advantage of the other possibilities of the blockchain. Think of cryptocurrencies, allowing coins and tokens to be used in the metaverse. In regular games, you can often accumulate money, lives, and food, but you do not actually own these items. In the metaverse, these things can be stored as tokens, which means you can keep actual money, lives, or food in your wallet. This is particularly popular for GameFi and Play-to-Earn (P2E) metaverse games.

NFTs also play a significant role within the metaverse. These are non-fungible tokens, and each token is unique. A unique property has been added to each token, distinguishing them from one another. An NFT can store various data, including images, videos, and texts. However, code for applications can also be linked to an NFT.

What is the advantage of the metaverse on the blockchain?
It’s no coincidence that metaverses on the blockchain are incredibly popular. This is because the metaverse, like the blockchain, operates entirely decentralized. Users have more control over their own data and need not fear that their information will be sold.

Moreover, users of the metaverse determine how further development looks. A metaverse running on blockchain typically utilizes a DAO, which stands for Decentralized Autonomous Organization. This means there is no central governance. All decisions are made with the community, allowing everyone to propose ideas and vote when decisions need to be made.

This is better understood when we look at how the metaverse operates.
User data is not stored on a central server, which is the case in a metaverse developed by a company like Meta. Such companies hold immense power, as they could sell user data. Furthermore, users must rely on these companies’ security measures to ensure their data is not leaked.

You can only use a metaverse on the blockchain once you have linked a wallet to the application. This wallet stores your private and public keys, to which your crypto assets are also linked. All data you generate in the metaverse is stored on the blockchain. It must first be signed with your public and private keys, also known as your digital signature.

Therefore, no one else can access your data unless they obtain your private and public keys. You are, of course, responsible for securing your wallet, so that your private and public keys do not fall into the hands of third parties.

How do I access the metaverse?
In some metaverses, you need an AR and VR headset to access the online environment, while in others, you can simply log in via your browser. This connects you to a metaverse that runs on the blockchain, after which you link your wallet to the metaverse application. You then gain access to the metaverse. Each metaverse operates differently, so it’s advisable to read the step-by-step guide on the website of the specific metaverse for clarity.

Metaverse crypto projects
It is impossible to name every metaverse crypto project. New cryptocurrencies and projects emerge daily. Some focus on developing a new metaverse, while others work on additions to existing metaverses. Therefore, we want to discuss the two most important and well-known metaverses below.

Decentraland
Decentraland allows you to become the owner of a piece of land. You can buy land in the Decentraland metaverse, which is essentially an NFT. It is possible to resell a piece of land (LAND) on an NFT marketplace.

On this land, you can build almost anything. It is also possible to walk through the world of Decentraland as a user and interact with other users. In terms of design, Decentraland is reminiscent of the popular game Minecraft.

The Sandbox
In The Sandbox, you can also purchase a piece of land (NFT) in the metaverse, where you can build various things. The possibilities are nearly limitless. You can customize the appearance of your character.

Nike has confirmed that it is working on NFT shoes for the metaverse. This means that owners of the NFT can have their characters wear these shoes. This is another way NFTs are being applied within the metaverse.

Where can you buy metaverse coins?
You can buy metaverse crypto coins on the Knaken platform. We offer a wide range of cryptocurrencies, including metaverse tokens and coins. While we cannot predict the outlook for metaverse crypto projects, there is always a chance that the use of such projects will increase in the future. If you want to invest in the metaverse, you could buy one of the following metaverse crypto projects at Knaken:

– Decentraland (MANA)
– The Sandbox (SAND)
– Enjin Coin (ENJ)
– ApeCoin (APE)
– Axie Infinity (AXS)
– PlayDapp (PLA)
– Yield Guild Games (YGG)

Conclusion
The metaverse is an online world that you can access through a VR or AR headset. You have also learned how the metaverse works. It can run on a central server, but is also very popular on the blockchain. Users then have more control over their own data, can participate in the development of the metaverse, and can use cryptocurrencies like coins and NFTs.

Often, the metaverse is seen as a game, while there are many more possibilities. You can hold meetings, concerts, or parties in the metaverse. It is indeed possible to see other users and communicate with them.

A metaverse coin is the cryptocurrency developed by a metaverse project. For instance, MANA is the crypto coin of the Decentraland metaverse, while SAND is the coin for The Sandbox. No one knows what the future of the metaverse will look like. Therefore, you might consider investing in the metaverse by purchasing a metaverse cryptocurrency. That can be done on the Knaken platform.