The future intends to be decentralized and is enthusiastic to adopt virtual experiences. Can they be achieved? The two emerging technologies of Blockchain and Metaverse can bring the idea of Decentralization and Virtualized experience together to build a safe and secure digital platform. Thanks to modern smart gadgets and tech, everything can be accessed with a touch.
Popular techs have brought together economic, technological, and physical worlds. To understand better how the equation of these two techs is making an on-ground impact, we have put together this article to understand Blockchain and Metaverse and the impact of their convergence.
Understanding Blockchain Technology
Blockchain Technology facilitates the process of recording financial transactions and tracking assets in a network using a shared, immutable ledger. The concept makes the idea of decentralization across the distributed network in a sense it foregoes master control. Blockchain makes tracking tangible and intangible assets feasible. With secured trade on the network, there is reduced risk and cyber complications. Blockchain assures secure financial transactions on the network which can be understood by how the technology works.
How does Blockchain work?
The Block of Data
Every transaction on the Blockchain is recorded as a block. These blocks maintain records of the movement of the asset both tangible and intangible. The block can hold information of choice allowing easy traceability.
Connect with Blocks before and after
The blocks generated from a transaction are connected to the previous and future blocks thereby forming a digitized chain of data. The chain is securely linked to preventing any alteration by manipulation or insertion.
An Immutable Transaction
The transaction once executed on the Blockchain cannot be reversed. Every block that keeps adding to the chain of an asset strengthens the verification of transactions. This ensures the technology is tamper-free thereby displaying the strength of immutability.
Potential Applications of Blockchain
Blockchain has potential applications in different areas of Automobile, Home Lifestyle, Finance, Insurance, Government, Contracts, Agriculture, and many more. Here are a few suggested applications of the technology.
- Build Secure, Transparent, and Immutable Digital Voting systems in Public Companies and Public Elections.
- Transfer and maintain ownership records of houses, property, land, intangible, intellectual assets, and many more on Blockchain.
- Improve Supply Chain efficiency by tracking the origin of food and other products.
Blockchain houses huge potential in futuristic digital products like Metaverse. Intensive exploration and deployment will reshape industries in their operations and processes.
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Understanding the Metaverse
Driving Digital Experience through smart devices, Metaverse is a rising technology bridging the connection between the virtual world and reality. The rising internet speeds are fuelling the adoption of the metaverse experience thereby contributing to its growth. Metaverse intends to be decentralized with the distribution of control to the users over their data. In the virtual environment, users can interact, engage, play, collaborate, and more.
Metaverse allows users to hold ownership over elements, products, intellectual property, and intangible assets like images, videos, NFTs, etc. It will also allow the adoption of customized 3D avatars depicting the user in Virtual space. Metaverse as a platform will be able to engage users and communities while imitating the real world.
Convergence of Blockchain and Metaverse
Metaverse offers a scalable, secure, and easy-to-use digital experience. With the adoption of the Internet, it became essential to monetize the platform by developing strategies to bring in revenue. Metaverse has started to provide an upgraded customer experience along with a lot of options to make it a revenue stream.
Currently, digital platforms offer technology-backed payment Solutions to generate revenue. But there are certain regulatory and security issues. Blockchain can become a supporting infrastructure to stabilize payment gateways and finance and is being tried and tested. With digital asset creation an inherent concept of Metaverse, housing a secure gateway enhances the trust in the experience.
Blockchain can become the underlying technology for building a more resilient payment infrastructure in the virtual world. Businesses are investing to develop their own proprietary Blockchain platforms to support their own verses. Users on metaverse can even deploy their own digital assets which need management of ownership records. With Blockchain, the transfer and control of ownership remain with the user.
With continuous transactions happening in the Virtual world, contracts outlining the terms of ownership and usage have to be viable. Blockchain assures users with smart contracts which are immutable. Smart contracts automate the transfer of digital assets in the metaverse.
Blockchain makes the metaverse more reliable in terms of privacy and financial security with clear trackability of blocks. Metaverse will employ a wide array of Digital assets like elements, Virtual Avatars, NFTs, utility tokens, advertisement spaces, virtual goods, digital art, etc. They all need protection from external cyber threats and the convergence of Metaverse and Blockchain brings in more reliable digital platforms.
Additional Reading – Metaverse Opportunities for the Automotive Industry
Together the better – Blockchain and Metaverse application benefits
- Increasing efficiency in transactions on Metaverse removes risks in digital financial transactions.
- Deploy innovative solutions in the Metaverse to authenticate digital elements.
- Provide users control over their intellectual property like copyright over art, sound, image, etc.
- Employ smart and resilient payment gateways with trackability and tamper-proof features.
- Reduce dependence on third-party transaction authentication with direct transfer of payments.
Metaverse and Blockchain are two young technologies housing enormous potential to change the way the Internet and Customer experience are perceived. The idea of any technological adoption is to build user trust and become reliable. While the Metaverse virtualizes the digital experience, Blockchain secures the backend i.e Digital Commerce.
Every digital platform has to be able to protect the user identity, privacy, and owned assets in order to assure the users and with blockchain, metaverse secures the digital transaction. While the metaverse can be employed in different prospects across domains, the underlying features remain the same. There are principal challenges to addressing these features in a secure environment and blockchain affiliated with metaverse will assure user reliability through decentralization.