Metaverse is a broad term used across gaming, technology, and crypto to describe interconnected virtual environments that people access to interact with others in something closer to real time than a typical website or app. The concept itself is not exclusive to crypto, and many well-known virtual worlds and games do not use blockchain technology at all. Some metaverse platforms are built and controlled by a single studio, while others aim to be more open, letting different applications or experiences connect within a shared virtual space.
In the crypto-specific version of the idea, blockchain is used to represent ownership of items inside these virtual worlds, such as plots of virtual land, wearable items, or avatars, usually as non-fungible tokens. Some platforms also run their own token used for payments or governance within that particular virtual world's economy.
The term has been used loosely and has gone through significant hype cycles, and adoption of any individual metaverse platform can vary enormously. Digital land or items in a blockchain-based metaverse have no inherent value outside of demand for that specific platform, and their prices have historically been highly volatile, so this is an area where careful research matters more than most. As with other hype-prone corners of the industry, claims about a given platform's future adoption or usefulness are worth treating with real scepticism until they are backed by sustained, actual use.
Key takeaways
- Metaverse describes persistent virtual worlds, only some of which are built using blockchain technology.
- Blockchain-based metaverse platforms typically use NFTs to represent virtual land, items, or avatars.
- Values of metaverse-related tokens and assets have been highly volatile and depend entirely on a specific platform's ongoing use.
Metaverse — frequently asked questions
Do I need cryptocurrency to use a metaverse?
Not always. Many virtual worlds do not involve blockchain or cryptocurrency at all. Crypto-native ones typically require a wallet and sometimes a specific token to buy land, items, or take part in governance.
Is virtual land the same as owning real estate?
No. Virtual land is a digital asset, often an NFT, that represents a claim within one specific platform, not physical property, and its usefulness and value depend entirely on that platform continuing to be used.
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