How the economy is transformed in the Metaverse

More and more people, particularly the younger generations, spend a large part of their free time within these new virtual worlds, where they replicate all the social dynamics typical of real life. If we think about it, in addition to satisfying primary needs related to nature and human physiology (food, shelter, health, etc.), human beings are inclined to acquire secondary goods and services for much less ‘existential’ reasons. This is also the case in the metaverse. Most purchases, in fact, stem from the need to express one's identity, creativity, or the need to show one's status and belong to a certain community, feeling ‘part of a group’.

“Living” in the metaverse may involve buying or selling goods and services. For example, if a digital art exhibition is organized with the possibility of selling works, a method of payment will have to be found. This is where cryptocurrencies come into play. Moreover, just as there are different metaverses, there are also multiple cryptocurrencies.

A crucial element in emerging metaverses is the use of blockchain technology. This allows a platform to function like any virtual game world, but with a real internal economy, managed through cryptocurrencies. Digital objects in the metaverse are in NFT format (non-fungible tokens) and are purchased using cryptocurrencies.

An NFT does not exist in nature. It must be created. It is possible to create an NFT of a painting, text, music, video and generally of any object that can be represented in digital format. Once transformed into NFT, that work will be unique, original and cannot be duplicated or modified.

In a decentralized metaverse, this means that objects purchased in the virtual world via cryptocurrencies remain the property of the acquiring user permanently, as their ownership is registered on the blockchain and remains accessible from the user's wallet. This ensures the traceability of transactions made using cryptocurrencies as currency, as well as the traceability of the ownership of objects. Thus, not only is there a connection between the metaverse and cryptocurrencies, but the latter are also a fundamental part of the ecosystem of the former, so much so that, as we have seen, each platform has its own cryptocurrencies used to purchase goods and services.

In conclusion, the Metaverse represents a fascinating and complex frontier for the global economy. This virtual space is already beginning to transform various sectors, from entertainment to commerce, offering new business opportunities and innovative economic models.

Sabrina Sommario