Blockchain has undoubtedly changed the way users interact across the globe. Everything started with Bitcoin, primarily designed for transactions and payments – things then quickly moved into Ethereum for DeFi (decentralized finance) and other applications based around financial products. Now, we have a plethora of multi-faceted solutions with many designs and purposes.
As blockchain technology has continued to grow, additional use cases have begun to arise. One of these is a fairly new concept deemed the metaverse, which has completely taken the retail and corporate industries by storm.
So what exactly is the metaverse, and what impact will it have on the future of the ever-growing virtual world we live in today? On top of that, how will cross-chain bridges play a role in building the metaverse?
How can the Metaverse Shape the Future?
In theory, a metaverse is an immersive virtual world where users can derive some means of social and/or financial benefit. Due to the inherent nature of the blockchain’s architecture, users within the metaverse are able to interact in a completely decentralized manner, whether it be through payments, conversations, exchange of goods and services, etc.
Simply put, blockchain enables the metaverse to become its own native economy through digital assets, items, and other means. You can think of the metaverse as a supercharged video game through virtual reality and real potential to earn.
But it’s a far more engaging economy that merges the features of virtual reality, social media networks and interactions, and video game playability with crypto and blockchain on the internet.
In the metaverse, users can assume the role of avatars and share in the wealth of experiences with other players while exploring the virtual world they live in. In-game items, such as real estate, accessories, tools, and more often have real-world economic value that can be exchanged for crypto (metaverse tokens).
Why is this technology revolutionary? For one, it’s elevating the virtual reality and video game industry by combining them with the features that blockchain possesses. Metaverses prove that these digital assets, items, and experiences can create real-world market value
We’re seeing the world moving deeper into the metaverse, with crypto and retail users alike embracing platforms such as Decentraland and The Sandbox, in addition to large companies such as Facebook and GameStop building their own solutions.
How Bridges Bring Value to the Metaverse
Bridges are core components to bringing scalability and blockchain interoperability to the metaverse. As previously mentioned, tokens used within the metaverse are the key drivers of its value. They essentially bolster the entire metaverse economy, where the seamless transfer of these assets still remains a significant unmet need.
The fluid exchange of digital assets between metaverses via a bridge improves scalability and interchangeability, freeing up congestion across different networks while also almost merging liquidity across the board. This will greatly improve the way transactions are carried out from a user perspective, in addition to overall efficiency.
Moreover, bridges will help contribute to the decentralization of co-existing metaverses while also encouraging more activity.
Therefore, bridges are essential for unlocking the metaverse’s full potential by allowing these digital assets to be transferred between platforms, enabling cross-chain interoperability. Each metaverse realm will run on a different blockchain and have its own features and value – bridges will only further enable these economies to share in the wealth and thrive.
Bridges are Critical Infrastructure
Now that we understand the unique and inherent value bridges bring to the table, it’s clear that the metaverse worlds that exist today truly need them to ultimately thrive and scale to the point of mass adoption. Having reliable and decentralized bridges will not only improve efficiency and scalability but also foster greater trust in the system, creating a win-win situation for both sides.
Currently, the majority of metaverse worlds running on their respective networks stand siloed but have some interoperability with other networks. Given that cross-chain bridges are still in their infancy and, in many respects, have a ways to go in terms of full development, the need is ever-growing.
Magpie Protocol is here to accelerate this process and present a more viable solution. Although cross-chain bridges have been deemed the answer to helping scale the metaverse, Magpie is creating an entirely new product set to revolutionize the industry.
This project is building a decentralized liquidity aggregation protocol designed for cross-chain asset swaps – but it doesn’t require users to bridge assets. Instead, what users receive is an efficient and quick method to exchange digital assets across networks, while also minimizing gas fees in the process.
Not only is this solution easier to use but it also increases security, speed, liquidity aggregation, and the overall user experience. In the long run, Magie Protocol’s aim is to simplifying the entire process while allowing in-game metaverse economies to flourish.
Cross-chain swaps in the metaverse are due for a makeover, and Magpie Protocol is digging deep to deliver on all fronts.