Blockchain Metaverses: The Basics

Blockchain Metaverses: The Basics

Metaverse is the new tech trend everyone is excited about. One can describe it as a virtual world or a cyberspace. This new type of digital space can be accessed via AR, VR, and even PC. Metaverse is not an independent technology, but more of a new method of interacting with technology.

Games like Fortnite or World of Warcraft with their developed in-game economies resemble metaverses, but only partially. A metaverse, in the proper sense of the word, suggests that you can take your online identity with its avatars, assets, and other possessions and move them elsewhere, without sticking to a single platform.

The synergy of blockchain, crypto, VR, and other sophisticated technologies help expand the possibilities of metaverse-like environments. 

Blockchain Metaverses and Their Economies

A crypto Metaverse is powered by blockchain tech and integrates cryptocurrency assets into the core of its economy. Users can buy, sell, and exchange all sorts of digital goods from avatars to property, using different metaverse tokens. 

For example, non-fungible tokens represent ownership rights and assign them to wallet addresses of the owners while blockchain keeps track of it. And then there are governance tokens that allow communities to control and regulate the main processes happening in the virtual world and coordinate collective decision-making. 

Every metaverse features its own unique economy. Axie Infinity, one of the crypto gaming pioneers, turned into an independent universe with a set of rules, allocation of roles and duties. It features a massive marketplace and, apart from NFTs, two types of tokens that make an efficient and profitable ecosystem.

Marketplaces are at the head of metaverse economies. Acting as closed systems, their value depends on their internal assets. Market adjustment in this case is achieved by the shortage of resources.

Rates of metaverse resources can vary from their rates at the external market. It is possible to engross the entire supply of a certain resource and create a market shortage, raising its price significantly. At the same time, the external market won’t be affected by it whatsoever.

Every blockchain metaverse has its own core idea that guides its entire existence. The storyline, the purpose, and ideology determine the economic structure and the use of the resources. However, the highest value of every Metaverse lies in its community that supports the economy.

Every metaverse, no matter how unique it is, exhibits similar features like the ability to own assets, a set of rules, property interoperability, and an independent economy. Blockchain metaverses are decentralized and controlled by users, not corporations. The asset ownership rights are shared between participants. On top of that, the users can take part in metaverse governance.

Metaverse Token Market

The metaverse token market is still in its infancy and currently amounts to $38 billion. However,  some projects like  Decentraland (MANA), Axie Infinity (AXS), The Sandbox (SAND), Enjin (ENJ), GALA, Wax (WAXP) currently generate most of its value. Moreover, it is only fair to conclude that the main niche and use case of the modern metaverse token market is in gaming.

Token growth has shown quite a span, ranging between 200% and over 20,000%. Volatility is very typical for any crypto asset, and metaverse tokens are no exception. One of the most expensive tokens in the space, NFTs not included, stays at a $1,900 mark, and the majority of other assets cost somewhere from a couple to a couple of hundreds of dollars. 

Since blockchain metaverses provide both entertainment and the ability to make extra money, they are often considered investment opportunities. In the future, as the underlying infrastructure grows and metaverses start interacting with each other, backed by an extended functionality of social media and crypto assets, the value of the investment might grow exponentially. 

In case you decide to invest in metaverse tokens, HitBTC offers a few to choose from. 

Read more about Game Tokens

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