How Blockchain Technology Is Changing the World From the Metaverse to NFTs The dawn of Web 3.0 and the digital era.
By Devan Leos Edited by Chelsea Brown
Opinions expressed by Entrepreneur contributors are their own.
Digitalization has rapidly advanced over the past few years. No matter where you look, the digital world is expanding exponentially. People are becoming more and more comfortable with technology, and the more we use it, the more we rely on it. The vast majority of the population now has access to smartphones, computers and the internet. This has completely changed the way we live and work. With the advancement of digitalization, we've seen a shift in many industries. Many industries have been rapidly digitizing to compete with each other.
The financial sector was one of the first affected by digitalization. We've seen banks, credit card companies and payment processors adopt new technologies to offer better services and offer a more user-friendly experience. The fields of law, government, healthcare and education have also been rapidly changing to keep up with digitalization. New forms of records, electronic signatures and digital identity are required to operate in the digital age. These are just a few examples of how the digital world changes our everyday lives. As digitalization advances, we will continue to see even more changes. The digital world is also changing how we work on a global scale. Let's look at what this means for us as a society.
Related: How SMBs Are Embracing Digitalization For Business Resilience
Blockchain technology
The first significant advancement in blockchain technology came in the early 1980s. Blockchain technology was initially developed to facilitate the digital transfer of money. However, in recent years, the blockchain has been recognized as a robust technology that can be applied to many uses.
The blockchain is a distributed ledger maintained by a network of computers. This distributed ledger allows multiple parties to record transactions without needing a central authority. The blockchain is a transparent ledger, meaning it cannot be changed once it is recorded. Once the transactions on a blockchain are recorded, they are unalterable. One of the essential features of the blockchain is that it operates on a trustless model. With the blockchain, trust is not required between the parties involved in a transaction, because the ledger is distributed across multiple computers. Therefore, the blockchain eliminates the risk of fraud or identity theft.
The metaverse
A metaverse is a blockchain-based public platform that uses a decentralized open-source ecosystem to enable users to create applications and engage in digital commerce. As an open-source blockchain infrastructure, a metaverse typically includes a user-friendly DUI, a decentralized wallet and a decentralized exchange.
Some metaverses have a native token, such as $VIMP on the platform Vimpto Worlds or $APE in the BAYC metaverse, which can purchase virtual reality content, digital assets and metaverse items with real-world utility and value. The word "metaverse" has now been adopted by the blockchain community to describe a Web 3.0 blockchain-based digital world.
Related: Why Your Business Needs to Prepare for the Metaverse
Decentralized exchanges (DEX)
A decentralized exchange is a platform that offers trading between different cryptocurrencies without using a centralized third-party broker. Decentralized exchanges are issued and run on blockchain technology, meaning no middlemen are involved. There are several types of decentralized exchanges. The most common type is a peer-to-peer (p2p) exchange. In this type of exchange, buyers and sellers directly connect. This type of decentralized exchange is best for trade between digital assets. There are centralized and decentralized order books. In a centralized book, users deposit funds and buy/sell coins by directly submitting orders to the exchange operator. A decentralized book is powered by smart contracts and eliminates the need for a third party.
NFTs
You have likely heard about NFTs, but if you are still confused, here is a clear and concise explanation:
NFTs (non-fungible tokens) are digital tokens that represent a physical asset, such as a piece of property. They are used to create new markets and expand the use of currently not-widely-used assets. NFTs can be used in various ways, including for in-game purchases, as rewards for users who create content, as rewards for viewers of content, and as tips for users who participate in content reviews. NFTs are recorded on the blockchain, making them irreplaceable. Therefore, they can be transferred and traded like any other asset on the market. Unlike tradable assets, such as stocks or commodities, which are divisible and tradable in unlimited quantities, NFTs are divisible, meaning one token cannot be traded for more than another. To sum it up, NFTs are a digital token authenticated through the blockchain that allows digital items (like art or pictures) to have a unique value based on scarcity, provenance and authenticity verified through on-chain transactions.
Related: Here's a Beginner's Guide to Crypto, NFTs, and the Metaverse
Smart contracts and BaaS
When it comes to creating smart contracts, Solidity is one of the most popular languages. Ethereum is the blockchain network that supports smart contracts and is one of the most popular blockchain platforms in the world. BaaS ( blockchain-based application service) is one of blockchain technology's most common use cases. BaaS is a software service that helps enterprises develop and deploy decentralized applications (dApps) on blockchain networks. It is one of the critical use cases of blockchain technology. BaaS enables you to build your applications on the blockchain and then provide access to the users.
The future of the digital world
The digital world is constantly evolving. However, the advancements and implementation of blockchain technologies are rapidly changing the world of digital assets and even finance as we know it. We will continue to see more and more changes as digitalization advances. The ever-expanding digital world is affecting our everyday lives in dramatic and noticeable ways, and it will continue to do so for the foreseeable future.
Digitalization will affect industries, businesses, banks and society at an exponential rate. There will be more changes, and we are better prepared for them now than ever before. Reality as we know it is changing before our very eyes. New technologies are being developed, shaping and chiseling the future faster than we ever expected. The future of the world is digital, and the end of digital is the world.
New forms of records (like blockchain transactions), electronic signatures and digital identity are required to operate in the digital age that we are living in today. While these advances may be confusing and challenging to adopt and understand by some, it is imperative to adapt and prepare yourself and/or your business for the brave new world being forged by blockchain technologies.
These are just a few examples of how the digital world changes our everyday lives. The enigmatic yet paradoxical push that may be leading the world towards the complete merging of man and machine has undoubtedly been jumpstarted by the development of blockchain tech — which is making the digital world more "real" while the natural world quickly ceases to be enjoyably inhabitable without relying on ever-expanding and awe-inspiring advancements of technology.
