Metaverse is a decentralized platform which relies on a public Blockchain technology. The platform is open source and designed to enhance the efficiency of cryptocurrencies by digitizing assets, a concept similar to asset securitization.
Digital assets are similar to traditional assets in that each unit and transaction requires a unique identity to prevent fraud and double spending and protect value. As such, a system that can ensure this is achieved would be essential to the digitization of assets, as well as to the trading of digital assets. This is what Metaverse aims to do.
The crypto follows a similar protocol to that of instruments such as intellectual property and financial securities rights, which enhance efficiency through voting or agent relationships. Metaverse uses smart contracts, based on the issuance of unique digital identities to a user’s assets. These assets can then be used as a store of digital value, just like real assets.
To function effectively in the cryptocurrency sphere, Metaverse uses a token called ETP. ETP represents the rights and interests of Metaverse but is not itself a new form of digital currency. ETP is anchored on the laws of supply and demand. Hence its value will have a very little effect on the behavior of fiat currency or cryptocurrencies such as Bitcoin.
Metaverse’s digital token is different from that of Ethereum, in that the token uses Bitcoin’s Unspent Transaction Output model, where transactions are defined by a set of outputs and inputs, and they will also contain private key signatures of all current and previous owners of a specific ETP.
History of Metaverse
Stephenson’s Metaverse, a fictional road in a Sci-fi novel, inspired the crypto’s name. The Metaverse Project’s first Initial Coin Offering in 2017 saw a distribution of 25 million ETP. An additional 25 million was used to set up a foundation in support of Blockchain ICO projects that benefit from the Metaverse community through investments that enhance the Metaverse ecosystem. ETP trading pairs are key data points in the promotion of further activity of ETP in centralized & decentralized markets.
Price Analysis of Metaverse
Metaverse is a unique cryptocurrency; it has an exclusive nature and comes with a financial system. This helps in the decoupling of businesses & technology, to separate the business layers from technical layers. This increases the value of Metaverse in addition to the ability to provide infrastructure services for IT systems & devices.
Metaverse’s ETP is distributed to nodes as repayment to participants for contributing to network safety. The introduction of Proof-of-Work allows Metaverse to distribute ETP to mining nodes as block rewards. This allows the network to attract a higher number of full nodes to secure the system in inception and life in the crypto exchange.
Metaverse is expected to switch over to an improved DPoS consensus algorithm once the ETP distribution used to provide mining rewards draws to a close. The DPoS system enhances equality in voting since it is more robust and decentralized than Proof-of-Work and Proof-of-Stake.