With new technologies emerging every other second, it is difficult to keep up. The rapidly changing technology trends have changed the way people now function online. Be it cryptocurrency, the metaverse virtual world, blockchain, NFT, etc., everyone has explored at least one of these things. But as users of these technologies, one needs to know how blockchain is at the core of all these developments.
A blockchain is a technology that records every digital information ever made online, which also gives it a name of a “digital ledger”. These records are stored in the form of blocks that are interlinked to one another like a chain. The blocks record the time stamp and data of the information that cannot be changed or reversed. And as more links are added to the chain, it keeps growing stronger making the information concrete. It is considered the most secure ledger as it is next to impossible to modify the data of one single block. One will have to modify the complete chain to make any alterations. This keeps data protected and helps prevent fraud because every transaction is recorded on a public ledger.
Blockchain is beyond cryptocurrency. The technology works for almost all types of transactions that encompass monetary value that includes money, real estate, art, or any other goods. As per research, blockchain in the agriculture and food industries will be worth $1.48 billion by 2026. By 2029, the blockchain technology industry will be worth $163.83 billion with a compound annual growth rate of almost 57%.
Advantages of Incorporating Blockchain
Due to its irreversible nature, no third can tamper with any information that is recorded on the blockchain nodes. As blockchains are P2P (peer-to-peer), the data is stored in parts on multiple devices making it almost impossible to hack.
Without considering any one device primary or central, data is divided and shared amongst all, which ensures that the copies of the transactions are all on devices. This makes it accessible to every member of the blockchain who can monitor it.
As we already know, all transactions of the blockchain are recorded in a way that makes it impossible to modify them. Knowing that all members of the network can monitor it and trace any fraudulent activities, makes it a very transparent technology.
Elimination of the middlemen
Blockchain eliminated the need for a middleman to keep your transactions safe. In this case, it used to be the banks that would charge the users for redeeming bank services. With every transaction recorded on the blockchain, users don’t need to rely on banks.
Future of Blockchain and Metaverse
While bitcoin and other cryptocurrencies are niche investment opportunities these days, blockchain is far from it. It’s continuously growing and being adopted across industries even today. 60% of CIOs across all industries are strategizing to incorporate blockchain into their infrastructure. Blockchain is seen as the most important innovation that the cryptocurrency boom developed.
It is safe to say that blockchain plays a major role in the development of the metaverse. The future of web3 is heavily routed to decentralization achieved by blockchain. Remarkable metaverse projects like NFTs are blockchain-based projects. The digital proof of ownership empowers NFT artists to track the ownership and the exchange of their art. Blockchain will soon facilitate the metaverse to build an economy within the virtual world.
The rapid development of blockchain technologies is witnessing the impact on digital assets of the world. This is contributing to the role of blockchain in empowering the growth of the metaverse, making it unstoppable.