Learn how blockchain technology seamlessly integrates with VR/AR and how it will reshape the virtual world
Blockchain is among the most promising emerging technologies today, and it holds tremendous potential for many industries far beyond its initial application to the financial space. Among its most promising yet unconventional applications of blockchain are in virtual reality (VR) and augmented reality (AR).
How does blockchain fit into the picture of immersive technology? Here, we’ll talk about how blockchain technology can be used together with VR/AR technology, and how this integration can benefit the virtual world as a whole.
How Blockchain and VR/AR Technology Fit Together
As a refresher, blockchain technology is the mechanism behind cryptocurrencies. It is a distributed and decentralized ledger system that uses a blend of algorithmic cryptography to validate and record transactions in the virtual world. It offers inherent benefits such as decentralization, immutability, transparency, and censorship resistance that makes it the ideal solution to address the limitations of today’s centralized way of managing digital transactions.
The most notable contribution of blockchain to modern society, however, is its ability to provide real-world value to digital assets and in ensuring secure access to these assets without having to compromise transparency and freedom of commerce.
Virtual reality, on the other hand, is a technology that enables users to completely leave their immediate environment and immerse in a new computer-generated (CG) virtual environment, while augmented reality simply enhances rather than pulling you away from your immediate environment by overlaying it with CG elements. One of the challenges in the virtual space, however, is interacting in that world in a secure way, as well as giving value to virtual commodities.
This is where blockchain technology fits in. With its token protocol, VR users can utilize it to represent both fungible and non-fungible digital assetsso that these commodities can exist in the virtual space with real-world value. Furthermore, users can take advantage of smart contracts to establish rules in the virtual environment and securely validate transactions. This fosters a secure and trustless method in transacting through VR.
Use Cases of Blockchain in VR/AR Technology
Both blockchain and VR/AR technologies have a wide variety of applications. Among these are the following:
1. Video games
Gaming is one of the most obvious and widespread application for VR/AR technology. Among its prominent examples are Pokémon Go, Beat Saber, and Robo Recall. Blockchain technology can be used in ensuring security when users buy and sell online gaming items. Blockchain can also be utilized as the building block in developing the gaming app itself.
2. Virtual eCommerce
With blockchain technology, users can easily create and monetize content in the virtual space. Content can span from anything, such as 3D smart objects, music, to virtual office space or land. Examples of applications using blockchain technology for virtual eCommerce are Decentraland and Cappasity.
3. Digital advertising
A revolutionary application of blockchain technology in the VR/AR industry is its integration with digital advertising. With apps such as Gaze Coin, advertisers can monitor users’ interaction with VR/AR ads, track copyright, and directly make payments to content owners. Other platforms that use blockchain technology in tokenizing VR/AR ad content are Adbank and FLO VR.
4. Virtual socialization
Blockchain technology can take live events to a whole new level, not only in providing an immersive virtual experience, but also in effectively monetizing live events with crypto tokens. Social events such as seminars, conferences, concerts, meetups, and even dating can be easily experienced by users from the comfort of their own homes through blockchain-based platforms like AltSpaceVR, Ceek, and VIBEHub.
Wrapping It Up
Blockchain and VR/AR technology are both young technologies with their own industries that have a lot of room to grow and are still at the cusp of global adoption. It is undeniable, however, that both play a significant role in reshaping the digital landscape and in changing traditional ways of communication and commerce.