Metaverse isn't as hot as it used to be. For the most part, this much-hyped future of digital life has recently started to wear off. Yes, big shots like Meta and Microsoft refuse to let go, but AI has been lately taking off all the attention, and now the Metaverse needs a breakthrough.
Maybe what it needs is blockchain technology to actually put users in possession of their digital stuff, better security, and insights into how everything works. On a blockchain, you have ownership of your digital assets – and it seems to be catching on well in other spheres as well.
Blockchain Changes Gaming, Ownership, Whatnot
Blockchain isn't just about Bitcoin and crypto. At its heart, it is a super-secure way to record who owns what - perfect for virtual worlds where people really need to know their stuff is theirs. Think of digital land, custom avatars, and special items in games: blockchain can track all that across a number of platforms.
The technology has already proved itself in the real world of online gaming and finance.
Take for example crypto casinos – these platforms are based on blockchain from security features to data storage on to a simple scheme where the player receives 10% of his losses back on a weekly basis. The funds drop straight into your account, and then you can use them in any way you see fit – on slots, poker, or sports betting.
No tricky requirements or special rules – just play your games, earn instant casino bonuses, and if you lose some cash, some part of it will automatically come back to you every week. So, when luck isn't going your way, you know some money's coming back. The cash shows up in your account each week, ready to withdraw or to play with.
NFTs for a New Era of Ownership
In crypto gaming, new horizons have also opened. NFTs simply show it perfectly - each is unique, like a one-of-a-kind trading card.
But on a blockchain-powered metaverse, those would not just be on loan from some company as they would belong to you. And that opens up a whole world of eventualities where virtual items have some actual value much the same as real-life ones do: collectors making proper digital collections, artists selling their work directly to their fans, and gamers truly owning their in-game achievements.
True ownership through decentralization basically means that no single company owns everything on the blockchain. Currently, most digital platforms are walled gardens where all the rules are pre-defined for what you can do with your stuff and charge as much in fees as they want.
Blockchain completely changes that, giving users real power over their assets. The implications for the metaverse are huge, changing the way we think about ownership forever.
Think about buying a piece of virtual land: thanks to blockchain, you'd own it outright and no platform could take it away from you or tell you what to do with it. People are already jumping on board with similar ideas, and DeFi apps held around $45 billion early in 2024.
The same could be done to upend everything from buying real estate to sending payments to friends in the metaverse. That freedom of ownership and control may unleash a whole new wave of creativity and innovation in digital assets.
Metaverse Fall from Grace
When the metaverse first hit the scene, people went wild. Everybody thought that very soon, everybody would work, have fun, and hang out with friends in these fantastic virtual worlds. Then came the reality check: development costs were huge, privacy became a huge concern, and different platforms did not properly interoperate.
Then AI stepped up and stole the limelight, pushing the metaverse to the side. It was a case of technology simply not being ready to deliver on some pretty massive promises, and people started to lose interest fast.
Numbers, however, do tell an interesting story. The metaverse market reached $47 billion in 2022, with estimations by some as high as $678 billion by 2030. It won't be easy getting there - it needs something big to shake things up.
Blockchain could be that special thing bringing onboard the security and user control the metaverse so badly needs. The potential is there, merely waiting for the right technological key to unlock it.
Virtual Economies Get Real
Blockchain could be the one changing how to make money move in virtual worlds. Traditional setups force you through centralized platforms that take big cuts in every transaction.
But blockchain lets people trade directly, creating marketplaces that work more like real-world trading. Imagine buying and selling virtual items as easily as you'd use eBay, but without the middleman taking a cut in transactions.
Smart contracts could automate trades, ensure fairness, and reduce costs to all parties involved. This financial freedom might be what businesses and users alike need to take the metaverse seriously.
Quicker transactions and lower fees would make for more active virtual economies, inclusive of all. In these new digital marketplaces, smaller creators and entrepreneurs could prosper, barriers to entry being so much lower, with innovation opportunities endless.
Hard Parts
Let's face it, blockchain isn't perfect. One huge issue is the speed of transactions. The current networks Ethereum included can only do 15-30 transactions per second. That's not even close to enough for a busy metaverse.
Yes, people are working on solutions, but we are not there yet. In particular, the technology urgently needs to scale dramatically for the millions of users who will be sending and receiving millions of transactions in the metaverse.
Another headache is how to get blockchain to play nice with everyday technology. Stuff like Solana and Polygon do try to make it work, but the whole experience really needs to be way smoother for regular people wanting to use it. Even today, the technical friction is too great for most users, and there's this huge challenge of how to make an experience simple without weakening security.
Then, of course, there's a government angle: as digital assets grow bigger, countries are making new rules about how they can be traded. How the free-wheeling nature of blockchain will fit into this set of laws and regulations is going to mean everything to long-term success. The regulatory field continues to change, and the balancing act required for successful navigation will be very delicate.
Gaming Gets Better
Blockchain could really shine in online gaming and casinos. Instant gaming platforms could become more secure and transparent in the metaverse, with blockchain verifying wins and assets in real time.
This builds trust as players know that their winnings are real and irrevocably belong to them. That is not all - in the future, such technology could completely root out cheating, ensure fair play, and come up with new kinds of gaming experiences that nobody has ever imagined.
The Outlook
As it were, blockchain might turn out to be just what metaverses need to make a comeback. It solves real problems of ownership, financial freedom, and secure transactions that create virtual worlds while putting users first.
Taken together, these technologies may finally allow the metaverse to fully live up to its initial promise of a truly immersive, user-owned digital universe. As technology continues to get better and better, blockchain and the metaverse seem to be interconnected, opening up new avenues for people to explore and own pieces of digital worlds.
Of course, no one can predict what the Metaverse is ultimately going to look like, but blockchain can make this a real changer - a digital universe in which users hold the key, creativity knows no bounds, and everything seems possible.
