The Metaverse, a term coined from the 1992 science fiction novel Snow Crash, refers to a collective virtual shared space that is created by the convergence of virtually enhanced physical reality and physically persistent virtual reality. In simpler terms, it’s a virtual world where users, represented by avatars, interact in a 3D environment.
The Role of Cryptocurrency in the Metaverse
Cryptocurrency plays a pivotal role in the Metaverse. The term ‘crypto-metaverse’ refers to a metaverse that incorporates blockchain and crypto-assets into its underlying technology. Ownership is recorded on the blockchain and can be exchanged for digital assets. This integration of cryptocurrency and blockchain technology into the metaverse creates a new economic and social dynamic.
Examples of Metaverse Coins
There are several metaverse coins, or cryptocurrencies, that facilitate trade and exchange within the metaverse. Here are some examples:
- Internet Computer (ICP): This coin powers the Internet Computer, a blockchain that runs at web speed with unlimited capacity. It’s a blockchain platform that allows developers to build websites, enterprise IT systems, internet services, and DeFi applications by deploying their code directly on the public internet. This makes it a key player in the creation of a decentralized metaverse. Homepage: Internet Computer
- Stacks (STX): Stacks is a layer-one blockchain that connects with Bitcoin’s blockchain through STX’s own proof-of-transfer (PoX) mechanism. With this technology, Bitcoin miners can pay to mint new STX tokens. Stacks brings apps and smart contracts to Bitcoin, enabling new use cases and innovation, making it a crucial part of the metaverse ecosystem. Homepage: Stacks
- Render (RNDR): Render is a distributed GPU rendering network, built on the Ethereum blockchain. It allows 3D artists and creators to distribute the heavy workloads of rendering tasks across a network of peers. This democratization of rendering power is a significant step towards creating a more accessible metaverse. Homepage: Render
- FLOKI: FLOKI is a meme coin that has gained popularity due to its association with Elon Musk’s pet Shiba Inu. It has evolved to become a fully-fledged web3 project spanning decentralized finance, NFTs, and the metaverse. (Elon Musk has been associated with Dogecoin. However, the statement about FLOKI is also accurate. Elon Musk’s tweets about his Shiba Inu dog, named Floki, have indeed influenced the popularity of the FLOKI token. The token was created after Musk posted a picture of his Shiba Inu puppy in 20221. So, while Elon Musk is associated with both Dogecoin and FLOKI, the two are separate cryptocurrencies. FLOKI has evolved to become a fully-fledged web3 project spanning decentralized finance, NFTs, and the metaverse) Homepage: FLOKI
- Theta Network (THETA): Theta Network is a blockchain-powered network purpose-built for video streaming. It’s a key infrastructure for data and value transfer within the metaverse, making it a crucial part of the metaverse ecosystem. Homepage: Theta Network
- Axie Infinity (AXS): Axie Infinity is a Pokémon-inspired digital pet universe where players can earn tokens by playing the game. It’s a prime example of a play-to-earn metaverse, where players can earn real-world value through their actions in the game. Homepage: Axie Infinity
- MultiversX (EGLD): MultiversX is a highly scalable, secure, and decentralized blockchain network created to enable radically new applications for users, businesses, society, and the new metaverse frontier. Homepage: MultiversX
- The Sandbox (SAND): The Sandbox is a virtual world where players can build, own, and monetize their gaming experiences. It’s a prime example of a user-generated metaverse, where the assets and experiences are created by the players themselves. Homepage: The Sandbox
- Decentraland (MANA): Decentraland is a virtual reality platform powered by the Ethereum blockchain, where users can create, experience, and monetize content and applications. It’s a fully immersive 3D blockchain-based metaverse. Homepage: Decentraland
- ApeCoin (APE): ApeCoin is the native cryptocurrency of the Bored Ape Yacht Club (BAYC), developed by Yuga Labs. It’s adopted to be the native coin of BAYC projects, as well as a governance token, allowing any holders to use their holdings to vote on community proposals. Homepage: ApeCoin
These cryptocurrencies are just a few examples of how cryptocurrency and blockchain technology are being integrated into the metaverse to create a new economic and social dynamic. However, investing in cryptocurrency always involves risk, and it’s important to do thorough research before making investment decisions.
The Metaverse and Web3 are inextricably connected
Web 3.0, also known as Web3, is a concept for a decentralized version of the World Wide Web. It incorporates blockchain technology to store information on a decentralized network of computers, offering enhanced privacy, security, and transparency. The Metaverse, on the other hand, refers to virtual worlds that enable online social interaction using digital avatars. As each one develops, we are likely to see more Metaverse environments incorporate Web3 technology. This is because the decentralized nature of Web3 potentially enriches Metaverse experiences with secure, user-governed environments. In this way, the Metaverse and Web3 are inextricably connected, with Web3 providing the underlying infrastructure that could underpin the future evolution of the Internet towards a broad digital future known as the Metaverse.
