With the appearance of blockchain technology, things around us are no longer like what they once were. Blockchain has emerged to store information. Change, cheating, or hacking information is almost impossible in this method. In Blockchain, you cannot have two of a kind; everything has a unique nature.
Information and transactions are secured by an encrypted signature called “Hash” in the blockchain world. But the digital signature is not a new concept, so why is Blockchain so popular now?
In the past, many attempts have been made to create digital money, but all failed, and the cause was “trust.” Suppose someone will create Dollar X. How can we make sure that the maker of this currency is not cheating? How can we ensure that the person can be trusted and will not steal our money?
As the first successful digital currency, Bitcoin was able to solve the trust issues. In an ordinary database (e.g., SQL), data is stored in columns and rows of tables, and anyone who is in charge of managing that database also can change this information. But in Bitcoin (and other blockchains), the data is not stored like this. In Blockchain, all data flows between those who use the network. New versions of Blockchain do more and can solve real-world problems with more power and capabilities. With the birth of Ethereum, new concepts were formed in the real world. Having decentralized apps with decentralized money was not a dream anymore. Everything started from here; what we see today as Metaverse, blockchain games, Non-Fungible Tokens (NFT), and decentralized exchanges were formed with the appearance of Ethereum as the second generation of digital currencies.
1- Metaverse
With the advancement of blockchain technologies, real-life has gained new aspects. Metaverse is one of these unique aspects that we will see in real life in different areas such as communication, entertainment, vocation, and medicine shortly.
But what is Metaverse?
Facebook has nothing to do with Metaverse, but it has not been ineffective in making the technology more widely known. Metaverse means the connecting point of the physical and digital world. A world in which you can interact with digital samples of objects and people.
The nature of Metaverse is decentralized, so this world is not controlled by any person or organization. Everyone is free to pursue what they need in this world.
To understand why Metaverse is part of the future, we need to look at its uses. Investing in different applications and areas of Metaverse can be an excellent opportunity to go beyond the present and move towards the future.
Unchangeable assets
NFT tokens play a significant role in blockchain games so that the players can trade these tokens without an intermediary. In virtual reality (VR) and augmented reality (AR) games, Metaverse goes one step further, and you can use money and virtual versions of natural objects, including digital currencies and NFT tokens.
Personal identity in an authentication
Self-identity information that indicates your unique existence can be stored in Metaverse so that no one can fake your identity. This ID code is just like the username on social media but a virtual version. Everything can be tracked in a transparent blockchain network, and no one can cheat.
Property in Metaverse
Have you ever considered putting your home deed in your wallet as a token and just selling the property token to someone else whenever you want to sell a house or real estate?
Establishing laws and regulations about properties in this area can be challenging for governments, but just imagine in the world of Metaverse, you can buy a property document digitally and own it in the physical world.
Fewer dealers, more convenient deals
We all know how intermediaries increase the final prices of goods and services in the digital and real world. Just think that in the world of Metaverse, you can buy items in the physical world without intermediaries and at a better price.
Now, blockchain games are getting a lot of attention. With the increasing use of Metaverse technology, governments will consider upgrading traditional systems based on the new world. To invest in Metaverse, we recommend taking a good look at Metaverse projects first. Every Metaverse project tries to solve a problem in the real world, so pay attention to the perspective of the projects
2- Decentralized exchanges
Are you tired of centralized exchange (CEX) authentication? Are you upset that governments are trying to impose unfair policies on us in the digital currency market? Are you upset that exchange managers in the digital currency market are manipulating prices to fill their insatiable pockets? Are you discouraged that the exchange servers in the middle of nowhere are down at the critical moment of the transaction, and no one is taking responsibility for your losses?
Decentralized exchange is where you will get rid of all these problems and many other unmentioned problems. First, let’s go back to find out more about the story. We said that Ethereum, as the second generation of digital currency, changed Blockchain. What Ethereum caused to appear is called the smart contract. These pieces of non-editable code cannot be altered or controlled by any person or government once they are put on the network. Many things can be done with smart contracts. One of them is the construction of decentralized exchange offices, which completely transformed the area of decentralized financial applications (Defi).
But what is a decentralized exchange, and how does it work?
Decentralized exchanges are smart contracts that allow traders to buy and sell digital assets without any intermediaries. Users must connect to these exchanges with their wallets to trade digital currencies in a decentralized exchange. There are three types of decentralized exchanges, the first two work based on liquidity pools, and the third type operates based on the order book.
How to invest in a decentralized exchange?
We said that decentralized exchanges use the liquidity pool to solve the problem of money flow. In this type of exchange, the party to your transaction is the exchange liquidity pool that, with intelligent contract algorithms, prices fluctuate based on supply and demand.
The good news is that you can now invest in a decentralized exchange as a liquidity pool investor. You will benefit from the commissions traders pay according to your share in the collection by investing in a pool. In other words, by participating in the exchange pool of liquidity, it considers a part of its profit from the commissions for you. Decentralized exchanges are just at the beginning of the path, and with the development of new generation blockchains, a bright future awaits them.
3- Web3
Now we’re here for the third attractive area in investment. Web3 The new version of the Internet has taken on a new meaning with blockchain technologies. If we look at the history of the Internet, we see that it has experienced many changes in a short period. The first version of the Internet was Web1, in which the context of each website was shown as simple text outputs. But today, Web3 and Blockchain have created a new method of interacting between objects, the information world, and human beings.
Have you ever heard of companies and organizations that have no managers? In the new internet web3, we are moving towards the so-called decentralized organization or DAO.
How to invest in DAO? The decentralized self-governing organization includes various fields and applications, the most important ones.
Bankless Association, a decentralized self-governing association-centric financial system centered around Ethereum, Bitcoin, education, and culture.
MakerDao Protocol, an Ethereum blockchain-based protocol that supports DAI Stablecoin.
KilmaDao Protocol, a climate algorithm digital currency that is carbon-based that fights global climate change.
Set of yearning. Finance protocols,
The system is based on the Ethereum blockchain, which helps users increase and improve their income in the lending and transaction services areas.
How to invest in the new version of web3 Internet?
Each web3 and DAO blockchain project offers different services, so we can recommend the same thing for all services. But the focus of web3 is to connect your digital currency wallet to such protocols and use their services.
What is your opinion about investing in new blockchain domains? In which of the mentioned areas have you sponsored, or in which areas are you following the news?