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Facebook’s Metaverse Could Be the New Crypto App Store
Metaverse is a virtual world that users can access through VR headsets. In a metaverse, avatars can interact with other users. These worlds are “decentralized” because they are built on blockchain technology, which is used to create networks with no central control. The underlying cryptography facilitates digital economies and virtual representations of legitimate ownership. Today, the metaverse consists mostly of games like Fortnite, Roblox, and other videogames. For access, users may need clunky VR goggles.
The Facebook Metaverse will support non-fungible tokens, which have thrived on the Ethereum protocol. This will make it easier to sell limited edition digital objects, such as virtual reality headsets. Facebook owns Oculus, a virtual reality headset maker, and has recently signaled a major hiring drive for its metaverse unit.
In the metaverse, users create their own virtual space, and interact with other users using an online avatar. In a virtual world, they can freely move, talk, and take action. In this virtual world, they can also buy and sell virtual property, and trade in it for non-fungible tokens. Although this may sound like an ideal investment opportunity, it’s important to note that this type of virtual currency is a new concept with limited market cap and high volatility.
The Metaverse offers new avenues for exploration. The rise of a centralized, big-tech metaverse can monopolize the space as Facebook and Google have dominated social media. This is a major concern for crypto enthusiasts, who worry that this could lead to the virtual equivalent of an app store.
