Since the metaverse is an exact copy and representation of the real world, the things that happen there are similar to what happens in our world. With custom-made 3D avatars, users can enter the metaverse, talk to and work with other avatars, and do things like play games, buy and sell digital assets, and hang out with other people. There are also 3D versions of buildings, meeting rooms, retail stores, and other real-world things in the metaverse.
Even though the metaverse means different things to different people and businesses, it is more than just a web of virtual worlds that are connected to each other. With the recent rise of blockchain and NFT use cases, many new and revolutionary projects have been started. One of the most realistic blockchain metaverse use cases is the decentralized metaverse. Blockchain technology helps the metaverse development services become less centralized, and it also brings other benefits, such as better governance, DAO integration, and interoperability.
Enterprises can choose from a wide range of blockchain protocols based on the needs of their industries. However, smart contract-enabled applications and platforms are in high demand. Smart contracts govern all trade and exchange of virtual goods and services in the metaverse, just like they do in the real world.
Smart contracts and related technologies improve many parts of the metaverse. They also create a new paradigm in which metaverse applications can run and work without being controlled by a single entity.
In this blog, we’ll go into more detail about the role of smart contracts in the metaverse and how they’re helping businesses and industries make their operations in the metaverse more decentralized and secure.
How can Smart Contracts deal with problems in the Metaverse?
To learn more about the problems that are most common in the metaverse and how smart contract development services can help solve them. First, let’s figure out what the metaverse is and whether it is centralized or not.
A Centralized Metaverse
A centralized metaverse is one that is run by a single authority. Users must follow the authority’s rules, internal servers, and other parameters. The idea for the metaverse came from Microsoft and Meta (which used to be Facebook). The metaverse is centralized, so users have to trust Microsoft and Meta’s authority and give them their data in order to enter and move around in it. Also, the user can only interact within the scope of the single metaverse ecosystem they are using. In a way, users have limited or restricted access, and they can’t talk to people in other metaverses or do things like buy and sell digital goods and assets.
A Decentralized Metaverse
Interoperability is one of the most important problems that the centralized metaverse might not be able to solve. However, the decentralized metaverse might be able to. The idea behind a decentralized metaverse is to build an open-source space with a number of connected virtual worlds that are controlled and kept safe by smart contracts.
Based on the rules and conditions written on smart contracts, users can enjoy cross-metaverse trading without having to worry about compliance issues. Instead of being run by a single entity, a blockchain-powered metaverse can be accessed and controlled by its users, almost like a DAO. Smart contracts give users the right to take part in how decisions are made, vote, decide who is in charge, and do a number of other important things.
Making Smart Contracts for the Metaverse
The attributes and properties of smart contracts depend on how a metaverse project is set up, how it works technically, and what features it needs. Because of this, smart contracts made for different projects may be different. Also, P2E game development metaverse projects are more common and worth the hype than other similar projects.
For example, a smart contract on popular metaverses like Axie Infinity and Decentraland handles and manages the trading of real estate, land parcels, in-game assets, and other digital assets that can be accessed and made available with NFTs. The process of making a smart contract works with many different tokens and standard protocols, such as ERC-721 and ERC-1155.
Cardano: Drives the Development of Smart Contracts
Cardano is one of the most popular platforms for building smart contracts on the PoS blockchain. This year, the number of people who use it and how popular it is grew by a huge amount. Cardano uses two different programming languages, each of which explains a different set of parameters. Plutus and Marlowe are the two programming languages that developers use to build Cardano applications and financial systems, respectively.
Chainlink: Deals in Oracle
Chainlink is another smart contract development platform that lets businesses make apps that work with other blockchain networks and can be shared between them. The platform also has “oracles,” or pre-built codes, that can be used to connect new projects.
Chainlink smart contract development allows computations to be done off-chain and interactions with real-world data. It also provides the highest levels of accessibility, security, and transparency that are typical of blockchain platforms.
Why do we need smart contracts in The Metaverse?
Smart contracts can be thought of as “invisible” technology that has already started to change our lives in the metaverse. One of the biggest changes that smart contracts-based blockchains make is that they get rid of the need to negotiate. So, they are a must-have in the metaverse to make transactions more secure and clear in places like eCommerce, real estate, media and entertainment, gaming, and more.
Smart contracts are the most important mechanism in the blockchain metaverse, and they have a number of benefits. They also help to regulate and stabilize metaverse activities. Smart contracts on the blockchain make it possible for people in different metaverse communities to talk to each other while also making it easier to make transactions. Smart contracts that are active and working have very low or no costs for maintenance. It also makes it possible for different metaverse projects to be built quickly and run cheaply.
Metaverse is going to give businesses in every industry that have the intellectual property to change their strategies and make them work with the virtual ecosystem a lot of opportunities and ways to interact with users. In the metaverse, smart contracts and decentralized applications are key to making it a hyper-real place and letting people do things like they would in the real world while they are in the digital world.
Smart contract development is also useful for making it possible to add new features to the metaverse without changing or optimizing the whole codebase of the metaverse.