When you think of blockchain, the cryptocurrency industry is likely the first thing that springs to mind. Of course, this is the best-known use case for blockchain technology, but it isn’t the only one.
The Metaverse is integrally linked to the blockchain. And again, most users will recognize this as the crucial part the blockchain plays in securing and facilitating transactions on Metaverse platforms. However, this isn’t the only use case.
There are many different applications for blockchain technology in the Metaverse. As a decentralized ecosystem, the Metaverse needs a trustless mechanism to run the various infrastructures and facilitate accountability. So, how might the blockchain influence the Metaverse beyond digital transactions?
DeFi (Decentralized Finance)
Beyond simple transactions, DeFi, supported by blockchain technology, enables users to complete complex transactions peer-to-peer — or decentralized in the case of organizational DeFi. In the Metaverse, brokers could use DeFi instruments to develop mortgages for virtual real estate, loans for various in-app projects, and virtual assets trading systems.
Sustainability
In the physical world, the blockchain has long been used to track, confirm, and dissipate stats on large-scale heavy industries’ energy efficiency and sustainability. Organizations could use the exact mechanisms in the Metaverse to ensure green energy is used to support critical infrastructure, like data centers.
Identity
One of the critical challenges in the Metaverse will be data management, particularly PII. There is a real danger of identity theft and the widespread exploitation of personal information. The blockchain provides a robust solution by enabling identity verification via immutable records and a deterrent to potential data abuse. Why? Because if every data point is recorded, it is less likely to be exploited.
Intellectual Property
So much content will be created at such a pace on the Metaverse that proving ownership will be complex. This is a significant issue because content can be monetized and provide a revenue stream for Metaverse companies. Blockchain is already used to determine intellectual property ownership and track its development, and the same processes will translate to the Metaverse.
Governance
Aside from digital transactions, governance is the most important use case for blockchain technology in the Metaverse. On one level, the blockchain supports the development of Decentralized Autonomous Organizations (DAO) because it ensures votes are legitimate and permanent. Governments can use blockchain technology on a grander scale to enable users to get more involved in decision-making. Some countries have already begun developing Metaverse spaces where citizens can participate in democratic governance.
Healthcare
We have already seen the first Metaverse hospital open as a digital twin to an existing facility in the United Arab Emirates. Yet, this is likely to be just the start of a healthcare gold rush as more organizations transition services into virtual environments. Blockchain technology will be essential in creating secure medical records, tracking patient care, and monitoring regulatory guidelines.
Supply Chain
Although many purchases in the Metaverse will be entirely virtual, some will translate into digital products. For example, many organizations have started selling NFTs as physical and digital products. When you translate digital products into physical purchases, you need an airtight method to track these transactions. Blockchain is the ideal solution.
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