Virtual gaming is currently a $20 billion market. And it continues to grow—exponentially. The reason for its explosive popularity? It allows users to escape the real world and enter an alternate digital universe where their every fantasy can be realized. And now, with the emergence of blockchain technology and VR/AR, we’re on the precipice of a new frontier: the metaverse. The metaverse is a digital extension of the real world, in which users can fully immerse themselves in virtual experiences that are not bound by physical limitations. Users can meet and interact with friends in virtual spaces, explore new environments, or even just relax at home by streaming their favorite shows or movies inside virtual walls.
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What is the Metaverse?
The term “metaverse” was coined by a Japanese scientist and philosopher Okoro Uemura in his essay, “The Next Stage in Human Evolution”. Uemura describes the metaverse as a “locally pervasive virtual environment” which bridges real and virtual worlds, allowing users to interact with each other and exchange goods, services, and ideas. The term “metaverse” has since been adopted by VR/AR pioneers and futurists who are looking to build a shared VR universe where users can socialize, work, and play together. The virtual universe that’s currently being built has no limitations. Users will be able to explore the deserts of Mars, swim with the Great Barrier Reef, or even travel back in time. They’ll be able to visit and inhabit any place in the world, or meet with other users, exchange ideas, and collaborate on projects in virtual meeting rooms. There are no borders in the metaverse, and no limitations on how far this new frontier can go.
Why build the Metaverse with Blockchain?
The idea of a virtual universe built with blockchain technology has been around for a while, but it wasn’t until recently that we’ve been able to fully equip it with the necessary technology and infrastructure to make it a reality. Currently, the majority of virtual reality games and experiences are built with centralized servers, which is inefficient and prone to data breaches and misuse. In order to build a fully decentralized metaverse, we must first use blockchain technology to build a distributed network. This will allow users to retain full ownership of their virtual assets, and trade items or services without the need for a central authority.
How Will the Metaverse be Built?
There are a few different paths we could take to build the metaverse. One option would be to create our own blockchain network to serve as a decentralized foundation. However, this isn’t always the smartest option because it would require building a network from scratch. A more efficient approach would be to use an existing blockchain network, such as Ethereum, to build the distributed virtual world. Ethereum is currently used to build decentralized applications, or DApps, which allows developers to build open source, decentralized applications. Unlike centralized applications, DApps are built on a distributed network of nodes connected to form a decentralized system. All DApps built on the Ethereum network can interoperate with one another to form what we call the “Internet of Blockchains.” This network of blockchain technologies allows all DApps to interact with one another and, eventually, the metaverse.
The Problems With Existing Virtual Reality Games
The virtual gaming industry has grown exponentially over the past few years, and it shows no signs of slowing down. In fact, analysts predict the market will grow to $75 billion by 2022. In order to capitalize on this growth and continue to expand, these gaming companies must take the necessary steps to create secure and stable ecosystems that are open for collaboration. This is where blockchain technology comes into play. Currently, most virtual gaming ecosystems are centralized, which is prone to data breaches and tampering. In addition, centralized systems are often more susceptible to hacking because there is a single point of failure. And because virtual goods and currencies are typically controlled by a single entity, like an online gaming company, they’re often misused. The most common example of misuse is the closure of a gaming platform, which leaves users with little to no options to retain full ownership of their virtual assets.
How Blockchain Can Resolve These Issues
We can create a decentralized, transparent, and secure virtual gaming ecosystem by leveraging blockchain technology. This will allow users to retain full ownership of their virtual goods, items, or currencies, and trade them freely. With blockchain, all transactions are recorded on a public ledger that is viewable by anyone, so there is no chance of these transactions being tampered with or fraudulent. We can also use blockchain technology to build smart contracts that enable the transfer of items or currencies between users. For example, if two users decide to trade, they can create a smart contract that automatically transfers the virtual goods to the other user once the terms of the agreement have been fulfilled.
Conclusion
Virtual gaming has come a long way since its inception, and now, with the emergence of blockchain technology and VR/AR, we’re on the cusp of a new frontier: the metaverse. The metaverse is a digital extension of the real world, in which users can fully immerse themselves in virtual experiences that are not bound by physical limitations. Users will be able to meet and interact with friends in virtual spaces, explore new environments, or even just relax at home by streaming their favorite shows or movies inside virtual walls. And while it’s still unclear how far this new frontier will go, one thing is certain: virtual gaming is here to stay, and blockchain technology will be the foundation that makes it all possible.
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