What are Different Types of Metaverses? | The Crypto Hawk

Despite the increasing popularization of the term Metaverse, it is crucial to keep in mind that there are different types of Metaverses, each one with its distinct characteristics. We have written on numerous occasions within Blockchain Observatory that Metaverses are not a new concept. Spaces such as Second Life or Habbo are as well, but it’s been the diverse uses of Blockchain technology like NFTs or DAOs that have brought them to a different dimension.

Different Metaverse Types

The non-Blockchain Metaverse encompasses any of the virtual worlds. Of course, the ones that are entirely centralized, such as Grand Theft Auto (GTA) or the legendary Sims and the Metaverses, are growing in popularity. Like Minecraft or Roblox. But it’s the markets and economies that can be created in them due to the Blockchain tech, which have placed them into the spotlight of both investors and regular people. In this regard, the function of NFTs in helping symbolize the value of commodities traded in these is crucial. Blockchain lets you change the idea of Metaverses, thereby increasing the possibilities of these Metaverses by linking the real world to the virtual. Blockchain Metaverses are areas in which an economy similar to the real world is created but entirely digital. For example, people can earn money from their talents in these virtual worlds by purchasing pizza, land clothing, cars, etc. As in the internet world, every business will establish a base in the Metaverse within the next few years.

NFTs and DAOs

In the creation of the Blockchain Metaverse, NFTs, as well as DAOs, have played a significant role. NFTs, or non-fungible tokens, are distinctive assets used to create the digital representation of an actual digital object on the Blockchain. The primary reason for this is that they’re limited in number and were designed to have distinctive and digitally verified characteristics. In the Metaverse, NFTs connect the physical world with the virtual world, creating virtual economies.

A Decentralized Autonomous Organization (DAO) is an organization that is managed through smart contracts. Intelligent contracts are secure and unalterable, and they are responsible for setting the rules of certain Metaverses. So everyone in the Metaverse is aware of their community’s guidelines, and they know that they can’t be altered shortly since they are registered on the Blockchain. Additionally, the owners of the Metaverses tokens can decide on the future Metaverse as part of an electoral system.

Some Other Types of Metaverse

We find examples inside the “traditional” Metaverses, such as the most well-known video game Grand Theft Auto. A video game that began in 1997 and that, besides the game’s primary narrative, lets you establish friendships with other gamers in an open world similar to reality. One example of a game mode that is now highly well-known on GTA can be described as “Role-play.” A game where the player’s avatar is assigned the same job as the real world. So, typically, you begin with a low-profile job like a sanitation worker or taxi driver. Then, according to the amount of money you earn and the experience you gain, the player can climb to the top of the hierarchy through virtual reality.

One of the best examples of a “traditional” Metaverse but with characteristics similar to Blockchain-based Metaverses is Roblox. Roblox can be described as an internet-based video gaming platform that has a game creation system that allows players to build the world of their dreams. It is why even though Roblox isn’t yet built on Blockchain technology, many developers of video games on Roblox consider it the natural progression that the game platform needs to make. A trial test of a Blockchain-like world dubbed PlayDapp Town has already been implemented within Roblox.

Metaverses Blockchain

In Blockchain Metaverses, it is essential to distinguish between decentralized and centralized. The significant difference between the two types of Metaverses is how they control that virtual realm. In Blockchain Metaverses that are centralized, such as Earth2 or the one that Facebook plans to launch in the future, all control lies within the control of one organization. In these Metaverses, the central company is the sole owner of all user information and is the sole entity to decide how the world will develop. Also, the distinction between these Blockchain-based Metaverses instead of the “traditional” Metaverses lies in the fact that the latter incorporates micropayments and cryptocurrency, and NFTs represent the virtual elements. They also have their economic system. However, control over this economy is with the few people who manage it.

Finally, there are Blockchain Metaverses that are decentralized. They operate through DAOs and are a completely autonomous virtual economy controlled by the users. The same is the case with Decentraland and Sandbox, and Cryptovoxels. Although they were founded by a single entity responsible for developing this virtual realm, they have all planned to transform into Decentralized autonomous organizations. It means that all of these Metaverses will be managed entirely by the users in the future.

The last Metaverse has the most significant potential soon. Even though these Metaverses are in the very beginning of development, they’ve already attracted the attention of many businesses like Adidas, Sotheby’s, Coca-Cola, and Gucci.

Originally published at https://thecryptohawk.com on February 17, 2022.