Metaverse uses a variety of different cryptocurrencies to fuel its ecosystem. These include Bitcoin, Ethereum, Litecoin, and more. Each of these cryptocurrencies has its unique properties and benefits that make it well-suited for use in different ways.
For example, Bitcoin is the original cryptocurrency and is still the most well-known. It is also the most valuable. Ethereum is another popular cryptocurrency that is used for its smart contract feature. This allows for more secure and efficient transactions.
While cryptocurrency (Bitcoin (CRYPTO: BTC) is the first of hundreds of cryptos) and the metaverse, which are essentially three-dimensional immersive virtual worlds, are two quite different things, they may become increasingly dependent on one another as they advance.
Let’s find out how Metaverse works and what cryptocurrencies metaverse use.
Metaverse 101:
In general, there are two kinds of platforms in the metaverse.
- The first entails using cryptocurrencies, nonfungible tokens (NFTs), and blockchain technology to build metaverse enterprises. A user can purchase and customize virtual land on platforms like Decentraland and The Sandbox.
- The second group refers to digital environments in general as the “metaverse”, where people can interact and transact business or just have fun.
Despite many metaverse sites giving free accounts, users who buy or sell digital assets on blockchain-based marketplaces must spend cryptocurrency. Ethereum-based crypto tokens are required for buying and trading virtual assets on several blockchain-based platforms.
In Decentraland, members can exchange NFT artworks or bills for entry to a virtual performance or concert. They can also earn money by selling land, which has recently appreciated significantly in value. On Roblox, users can earn revenue by charging other users to access their games.
What Crypto Does Metaverse Use
An NFT (non-fungible token) can be used to ensure the possession of items. These items can be works of art, digital collectibles, or digital replicas of real-world purchases, like a pair of sneakers from Nike (NYSE: NKE), which you can use in the metaverse.
The metaverse is currently primarily the domain of the video game industry and other creative start-ups, though. It’s important to note that the metaverse’s viability as a full-fledged digital economy has been affected by the volatility in the crypto area during the first half of 2022.
However, the following four early-stage initiatives are closing the gap between cryptocurrencies and the metaverse and are worth keeping an eye on.
Sandbox
People can customize and sell visual files within the game in the user-created digital realm known as The Sandbox (CRYPTO: SAND). The cryptocurrency used in-game is called SAND, and it is based on the Ethereum blockchain network.
On a variety of cryptocurrency exchanges, these tokens can be purchased and traded. As NFTs, SAND can be used to buy virtual land, buildings, equipment, and other commodities.
Decentraland
Another Ethereum network-based metaverse sensation is Decentraland (CRYPTO: MANA). The native token MANA allows users to buy virtual properties and develop them for avatars, other digital accessories, games, and other events.
The Decentraland DAO (decentralized autonomous organization) governs Decentraland. Holders of MANA or virtual property in Decentraland are eligible to vote in the DAO and engage in projects.
Axie Infinity
Consider Axie Infinity (CRYPTO: AXS) as a Pokémon franchise from Nintendo (OTC: NTDOY) on the Ethereum blockchain. Players fight against other teams while raising imaginary creatures called Axies. As a “play-to-earn” game, Axie Infinity allows players to acquire AXS tokens by participating.
The tokens can be used to purchase new Axies (which are traded as NFTs), train existing Axies to enhance their abilities, and purchase digital land in the Axie Infinity realm, which will soon be available. The most expensive Axie ever purchased was purchased with $820,000 in Ethereum (at the then-market price).
Crypto Baristas
The goal of the NFT initiative Crypto Baristas is to close the gap between the real world and the digital one. Those who own a Crypto Barista NFT persona have accessibility to a metaverse where they can connect with other coffee lovers. But this isn’t just a location to get a digital coffee. Additionally, the project is funding Coffee Bros., a real café in New York City that will collaborate with coffee growers all over the world.
This project is still in its early stages, and the details of how its tokens will function have only recently been published in a white paper, but it serves as an illustration of how metaverses can also have practical uses.
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