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December 5, 2021

What Will Ethereum do in the Metaverse

Ethereum is one of the world’s top cryptocurrencies. It is a smart-contract blockchain. Its framework consists of an emphasis on security and a decentralized environment for various applications. At the same time, advances are happening. Decentralized finance and non-fungible tokens have led the way. So many uses cases thus applied have shown the extreme potential for blockchain now and in the future. Whilst this is happening, advances are also happening in regards to the metaverse and the social media of the future. Vitalik Buterin and others are looking at disrupting social media as we know it.

In the Beginning

When Ethereum just started out, it stood as a solution for trading and lending crypto assets and for purchasing and selling digital art. In the case of trading and lending, Uniswap and Aave are prime examples of marketplaces where this was done. In regards to buying and selling art, OpenSea is a good example. Then came second-layer platforms. These platforms were built on top of Ethereum and offered even more solutions. Artbitrum and Optimism are good examples of platforms that did just that.

So is that of ZK. ZK is set to help lower the transaction fees on Ethereum and possibly help the decentralization of social media options like Reddit.

Ether is the Key

All the platforms mentioned above utilize Ether. Ether is required for the Ethereum network. If you want to release a new application or use an existing one, you will need some Ether. If you want to send funds to different wallets, you’ll need to purchase some Ether. Commentators believe in the not-so-distant future, we will need Ether to stake and secure networks.

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If protocols like Solan and Avalanche, which are based on Ethereum are successful and the “metaverse” too, then what we consider to be “money” may actually change. It’s not inconceivable. Already protocols have managed to raise funds, and investors measure their portfolios against Ether. Alternatively, they would have used the US Dollar or stablecoins. Regardless of this, the use of ether instead of stablecoins does not diminish the value of the other.

Ether and other types of crypto assets remain better investments in a currency at the moment because they are more reflexive of demand. However, there is great benefit in having large Ethereum ecosystems. The ecosystem shows that Ether is now being used for DeFi, NFTs, validation, and more.

When assets can be transferred from one legal entity to another quickly and used as collateral, you start to see that asset look more and more like money instead of property or stores of value.

Stake Capital’s founder, Julien Bouteloup thinks that the Web 3 workforce has shown more acceptance in being paid in token equity, instead of stablecoins. It is viable that employees that believe in their workplaces would be willing to be paid in equity. However, it is also possible that it is just a side effect of a bullish market and soaring valuations.

What may we expect will happen to Ether?

Among other things, we may expect to see play-to-earn games continue to increase in popularity. One example of a winner in the space right now is Axie Infinity. This is a Ronin-based nonfungible token game. It is already making waves by earning billions of dollars in annual revenue. People that use the game in various parts of the world are even able to live off the income from the revenue they make from it. In fact, a large part of this revenue is positively affecting the gross domestic product of a whole nation, the Philippines. With continued advances in Ethereum, we should expect to see more financially viable solutions popping up and changing the way the financial game is being played.