How can blockchain support the metaverse economy?

By Vivek Yadav

The term “Metaverse” became much more popular after Mark Zuckerberg officially renamed Facebook to Meta, intending to make the Metaverse a reality and help individuals improve connections, discover communities, and grow their businesses.

However, the concept of metaverse is quite old if you are familiar with the online gaming world but it is more than that. The metaverse refers to a digital world that merges virtual and augmented reality by taking advantage of advanced technologies in this growing world.

According to previous research, the global metaverse market size is estimated to reach USD 1,607.12 billion by 2030, growing at a CAGR of 50.74% from 2022 to 2030. Blockchain will empower metaverse businesses to offer their customers consistent services that converge their physical presence with 3D digital presences, changing the way customers interact and trade cryptocurrencies or other unique digital assets (NFTs).

Digital art, virtual goods, or personal experiences can be transformed into secure NFTs and stored on the metaverse blockchain as assets. To build a self-sustaining digital economy, Metaverse users can trade these NFTs for cryptocurrency to purchase other Metaverse entities or choose to cash out fiat at any time. NFT valuation and revenue can be accessed by countless systems and interfaces to work together seamlessly and interoperably via blockchain.

Indian creators have taken advantage of this global phenomenon of creating digital assets and selling them around the world. Creators in the photography, digital arts and games segment are actively creating NFTs and listing them in global markets and we have given artists sitting in Mumbai, Delhi and other Indian cities listing high quality assets in the meta-world. Apart from creators, India is also a hub for developers working in blockchain technology and global leaders in blockchain and tokenization are actively hiring Indian talent. With the abundance of tech talent already familiar with blockchain technology, combined with creative talent, Indian creators are an integral part of the global Metaverse ecosystem.

Blockchain may offer a promising and affordable option to protect users" hardware and digital data, as Metaverse stores data measured in exabytes.

For all business transactions taking place between stakeholders in a traditional computer network, it can enable secure storage, transmission, and synchronization of data by decentralizing the ledger to thwart fraud, maintain transparency, and transfer ownership. This concept of decentralization has found more acceptance in mainstream applications.

Blockchain smart contracts can support effective management of relationships with social, economic, legal, and other stakeholders within the metaverse ecosystem.

Additionally, create and implement fundamental guidelines for metaverse operations. The blockchain industry has roared in recent years, with bitcoin and other cryptocurrencies becoming a solid foundation for a fully functional economy in the virtual world where one can trade digital goods, digital art objects like NFTs, etc. Entrepreneurs and influencers can operate their businesses in the metaverse with endless opportunities. They can use cryptocurrencies to trade and establish a virtual economy, influencing the growth of the metaverse economy.

The author is founder of Cosmofeed

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