Not so long ago, the world had first heard about a decentralized currency called Bitcoin, and how a single token was valued at close to $20K. People were going on and on about how it could revolutionize the way we do transactions over the Internet. But now, within five years, not only Bitcoin but the underlying science called blockchain technology is taking the world by storm.
Blockchain technology has produced many products like cryptocurrencies, NFTs, DAOs, the Metaverse, and now, metaverse crypto.
So, in this article, let us explore the significance of blockchain technology in today’s times, ending with the Metaverse.
Features of Blockchain Technology
When we use centralized financial institutions like banks, we are always worried that they can print large amounts of money and devalue the currency. There is the risk of money embezzlement, bad decisions they make with our money, and even banks like Lehman Brothers going bankrupt.
Blockchain technology provides the perfect solution for this. Let us see them.
Recommended for you: Google is Working on its own Blockchain Technology.
Blockchain provides a truly decentralized network. Here no decision is taken by institutions but by individuals who hold the token of that particular blockchain. Moreover, every node interacting with the blockchain has an identical copy of the blockchain. That means the risk of corruption and money embezzlement goes out of the window.
Once a data or transaction takes place on the blockchain, the data can never change it. Changing a particular transaction is next to impossible as they connect each entry to previous and subsequent entries. So, changing an entry will require you to change all the entries of that particular blockchain. It also tackles the issue of a party rewriting the terms of the contract after it is signed. Thus, providing a trustless environment.
By now, you know that blockchain is a distributed ledger. That means every computer connected to the network has a copy of the ledger. This provides a safe environment for transactions to occur as you have thousands of eyes, ensuring that no fraudulent transaction takes place. Then there are validators who validate and deem if a transaction is possible or not.
In a blockchain, there is no single point of failure. It is a foolproof system. Even if a whole continent bans a blockchain, theoretically, the chain will continue running. No government, company, or individual can turn off a blockchain. Even if hackers aim to disrupt a blockchain, they have to gather more than 50% of the computational power running that blockchain. Well, the hassle is much more than the rewards.
Applications of Blockchain Technology
We have seen some of the applications of blockchain technology like the Metaverse and cryptocurrencies. But that is just scratching the surface. Let us see some other applications which will help blockchain technology receive mass adaption.
Real estate transactions require lots of paperwork, intermediaries like banks and lawyers, and time. With blockchain technology, anyone can upload their deed on the blockchain. The buyer just needs to pay the seller. After the payment confirmation by the nodes, the blockchain will transfer the deed and the ownership of the house to the buyer.
The Insurance sector using blockchain has already crossed a valuation of a billion dollars. Implementing blockchain into insurance can remove the risk of making duplicate claims. Additionally, it also automates the process of insurance claims as the blockchain will seek real-time data from IoT devices and Oracles. This will lead to faster insurance claims which are almost 100% accurate.
Supply Chain Management
Supply chain management deals with transporting raw materials to the final product. With the help of blockchain technology, we can easily track each step of the process. Moreover, since the data is immutable, no one can manipulate data. Thus, providing a trustless environment for business.
Blockchain-based gaming studios are a huge success. Here you can own a character, which is an NFT. That means even if the game shuts down or you are banned from the game, you do not lose the characters, skins, or other in-game items. You can exchange these NFTs in crypto exchanges for fiat money or cryptocurrencies. Some games you should check are Cryotokitties, Axie Infinity and Vulcan Forge, where you can play and earn up to $100 a day.
When kept on the blockchain, medical records can quickly provide doctors with updated patient data. Data about all the other doctors the patient is currently in the care of is also available. Moreover, no one can interfere with the data; thus, something as personal as medical records is kept secure.
Additionally, we can implement insurance data within the medical records. It will also help fast processing of medical claims.
It is common public knowledge that we lose most government benefits in due process and to intermediaries. Blockchain technology can reduce the costs and fraud involved in the system. Double claims and fraud claims can easily be determined, and government can penalize them in such situations. Moreover, we can instantly credit the account to real beneficiaries with the blockchain.
You may like: Inventive Automation in the Healthcare Industry – Tech Tools to Invest in Healthcare Startups.
What is Metaverse?
The Metaverse, or essentially the term, has been around for almost 30 years but has found its application when we combine it with blockchain technology.
If we ask ten different people this question, they will give us ten different answers. So, let’s make this simple for you. Metaverse is a representation of our real world inside a digital space.
The term “meta” means beyond, and “Verse” means universe. We can talk to people using video calls and interact with them on the internet. But with Metaverse, we can do many things. Starting with interacting with people using our avatars, exploring new worlds, going on adventures, and attending concerts.
You can also do some serious shopping and even buy plots of land using Metaverse crypto. All of these while sitting at your home.
Most of you have already seen this kind of thing in movies and television series. Just so you know, all of this is very real now because of the development of blockchain technologies.
Even big tech companies are betting on it. Facebook rebranded itself to focus more on Metaverse. According to Facebook, Metaverse fully aligns with its vision to help connect people better.
Significance of Metaverse in Blockchain Technology
Metaverse is an evolving concept, but there are some pillars on which Metaverse is built. All of these pillars are what we call the products of Blockchain technology. Let us see them.
Non-Fungible Tokens or NFTs are the building block of a Metaverse. They are the key to accessing the Metaverse. From your avatar’s skin to the product, you shop on the Metaverse, even artwork and music can be an NFT.
NFTs interact with the Metaverse environment and give real utility to the Metaverse. NFT has struck a chord with Metaverse enthusiasts, with some famous NFT that can go as high as $2000, 000.
A decentralized network forms the basis of the Metaverse. We do not host Metaverse on a server. But all the machines interacting with the Metaverses provide it with computing power. That means, even if an entire continent shuts down a particular Metaverses. Theoretically, it will continue to function. Moreover, the decentralized network help in syncing all the data so that everyone can use the same virtual space.
They are codes that automatically take action when a set of predetermined agreements is met.
We can make Decentralized Finance or DeFi applications using smart contracts, which will make transacting over the Metaverse hassle-free. Smart contacts also help to define the rules of a Metaverses.
Cryptocurrency is the money of the Metaverse. Most Metaverses are hosted on blockchains like the Binance blockchain or the Ethereum blockchain. So, the subsequent Metaverse crypto is a token of the following blockchain. We can trade the Metaverses crypto for the token on that blockchain and later trade them for fiat currency.
So, there you have it. Now we know how blockchain technology made Metaverse more than just a theory. We think you should check out some successful Metaverses like Decentraland, Sandbox, and Axie Infinity. It will help you understand how real the Metaverses are.
You may also like: Blockchain in Mobile Application Market (Infographic).
Metaverse needs to evolve more to provide better security from viruses and hacking attempts. Metaverse is not only about exploring or having fun. There is a chance to earn some serious money over it. Flipping NFTs, building businesses, and renting out building spaces for ads can provide monetary value. So, you can see metaverse has a high potential to be the new successor of mobile Internet.
Along with that, blockchain technology and its applications will be the future as they can provide a better solution to most of our problems. What we need now is a solution for interoperability between different blockchains. Many companies are targeting this issue, and we can hope that developers will also address this in recent years. Blockchain Technology is the future, so we should embrace it and be a part of a better future rather than fighting it.