Insights

The Crypto Metaverse in 2022

The metaverse is set to play a significant role in the cryptocurrency industry over the coming year, providing users with a brand new medium in which to live and interact with other users in a totally virtual space. Having already started this development in 2021, it’s clear to see that our understanding of what may be possible in the digital world is very limited – in such a short space of time, we’ve had our horizons widened vastly, with things such as real-estate, metaverse fashion, and NFT ownership all becoming intertwined with the various virtual landscapes that now exist on the internet.

But how does cryptocurrency become a part of this process and how important is crypto when operating in the metaverse? Put simply, digital currencies are the number one facilitator for access and function within the metaverse. On a basic level, the only way to transact, interact, and engage with items and individuals in the metaverse will be using cryptocurrency, often using tokens that are completely bespoke to the specific digital world that you choose to integrate yourself with.

With that in mind, it seems only logical to gain a deeper understanding of the main tokens associated with the metaverse in 2022 .

Which Metaverse Coins are the Best Investments in 2022

Decentraland (MANA) – An Ethereum-based shared virtual world

Decentraland is a software application that runs on Ethereum and aims to motivate users around the world to operate a virtual world together. In the virtual world Decentraland, users are able to buy and sell digital real estate, explore, interact, and play games. Users are able to send messages to each other on the platform, make in-world payments, and interact with apps – there are many levels of interaction, which is what makes the metaverse such an immersive place. There are two different types of tokens used in Decentraland, which work together to govern all operations in the space. These are:

LAND – A non-fungible token (NFT) used to establish ownership of digital properties known as land parcels.

MANA – A cryptocurrency used in Decentraland to purchase LAND, virtual goods, and services.

Decentraland software modifications are made with the help of smart contacts based on the blockchain. Participants who own MANA can vote on policy updates, land auctions, and subsidy allocations for new developments. This project uses Ethereum smart contracts to build many layered components. As part of the consensus layer, a ledger maintains a record of who owns what land parcel. In the virtual world, every parcel of LAND has its own coordinates, an owner, and a reference that describes the file, explaining what’s inside. The third layer, the real-time layer, allows users to interact within Decentraland through avatars and communication platforms such as voice chat and instant messaging.

The Decentraland builder tool empowers owners to create a unique experience within their LAND parcels – essentially, every part of your real estate can be bespoke designed in any way that you desire. Developers can access customization libraries and payment implementations in its editing tool, which allows them to create interactive scenes using previously created designs from other users, and vice versa

Marketplace and Builder

Besides the gaming environment, the Decentraland team has created a marketplace that features a ‘drag-and-drop editor’ – this allows users to create scenes and landscapes for their virtual property. LAND tokens, priced in MANA, may be managed and exchanged through the marketplace. The marketplace enables owners to sell or buy parcels and other in-game items such as clothing, possessions, or even one-of-a-kind names!

To ensure that a high degree of safety and security is maintained throughout your time utilising the Decentraland metaverse, all of your transactions will be settled in Ethereum wallets. This means that the transaction will be verified and logged on the ETH blockchain, creating a permanent record of the transaction and transfer of ownership.

What is The Sandbox (SAND) and Why is it So Popular?

The Sandbox is a decentralised virtual gaming environment that runs on Ethereum and the associated blockchain. Players can purchase digital plots of land, called LAND, and create experiences on top of them that can be shared with other players in The Sandbox. Decentraland’s concept of a blockchain-based metaverse is similar to The Sandbox in this regard. There are two other native tokens that govern the operations in The Sandbox, in addition to the NFT-type LAND token:

  • SAND tokens – This token is used to facilitate various transactions associated with the gameplay, including purchasing LAND, participating in user-generated content, and staking it in the decentralised autonomous organisation (DAO).
  • ASSET tokensNFTs (Non-fungible Tokens) representing items used to populate LAND, such as equipment for avatars and creations. These NFTs can be traded in The Sandbox’s internal marketplace system.

 

Through the Sandbox application, ownership of digital LAND and NFT ASSETS can be tracked by the Ethereum blockchain. SAND tokens are stored in Ethereum wallets that allow users to interact further with The Sandbox ecosystem. In addition, Sandbox’s platform allows developers to create animations and interactions on their virtual properties by using a variety of tools, such as:

Voxel Editor – This tool enables you to design and create voxels, which are the smallest units of three-dimensional modelling. Voxels can be used to create everything from flora to fauna and avatar-oriented equipment that you can use in-game, such as outfits, weapons, or vehicles.

Game Maker – Using Game Maker, a user can create bespoke 3D games in their own virtual LAND using ASSETS they created or bought in the marketplace – this gives every aspect of your metaverse experience a personally-tailored feel.

The Sandbox marketplace allows users to upload their creations, which are registered as ERC1155 tokens (ASSETS) on the Ethereum blockchain. Users can then trade these ASSETS on The Sandbox marketplace, giving every user the opportunity to invest, create, and earn in this digital landscape.

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