What Is Staking in the Metaverse?

The term “metaverse” was first used in Neal Stephenson’s 1992 science fiction work “Snow Crash.” In this novel, Hiro Protagonist (lol) travels โœˆ๏ธ through the metaverse to save himself from a capitalist dystopia. In our world, the metaverse is quickly shifting over to a staking system with base rewards even average people can enjoy. So, what is staking in the metaverse, and how can you receive digital assets through this system?

What Is the Metaverse?

Before we get into staking, let’s take a second to talk about ๐Ÿ—ฃ the metaverse. The metaverse is a superset of virtual reality, augmented truth, and the internet. That sounds pretty out there, but it encompasses platforms you might already know, such as in prominent video games like Roblox, Fortnite, and Animal Crossing.

Tech giant leaders hope that in our world ๐ŸŒŽ, this alternate reality will resemble the virtual reality depicted in sci-fi tales like “Ready Player One.” While no one knows for certain what the metaverse will look like down the road, its fundamental characteristics are established: 

  • It covers the physical and digital worlds
  • It revolves around a fully-functioning economy, including metaverse tokens and virtual plots of land
  • It permits users to take a trip to different “locations” ๐Ÿ›ซ with relative convenience, taking their items and avatars with them

You can read more about the metaverse in our article about this subject.

A Simple Explanation of Staking Crypto

Now, let’s get into staking. Basically, cryptocurrencies pay individuals ๐Ÿ’ต to protect and maintain their networks. One of the most popular examples is Bitcoin (BTC), which uses a proof-of-work (POW) mining formula.

However, mining has drawbacks, like high energy intake and technical problems. Buying and establishing ASICs requires some technical knowledge too ๐Ÿ‘ฉโ€๐Ÿ’ป, creating a barrier to entry. Both of these factors can put off prospective miners from mining crypto.

Alternatively, using staking, normal folks from the crypto user base can generally secure their crypto networks with minimal energy consumption and setup. Here’s how this proof-of-stake (yep, PoS) system works and provides easy financial rewards ๐Ÿค‘. 

The Staking Method of Validation

Staking allows you to buy a cryptocurrency and be able to stake it (or lock it up) in a smart contract. Once your stake is locked up ๐Ÿ”’, you can’t use it for the time stipulated by the smart contract. What you can do is vote to approve transactions ๐Ÿ‘. In many instances, that voting happens automatically, so you don’t have to think about it at all.

How a Staking Contract Works

The “contract” between the staker and the blockchain network is usually pretty basic. Staking policies usually differ by the network, but we can get a general idea ๐Ÿง  of a staking contract through the following:

  1. The staker agrees to verify only valid transactions on the network. That means they will not approve suspect or duplicate transactions.
  2. The network awards the staker with a staking base reward if the staker approves valid transactions.
  3. A staker may lose some or all of their stake if they vote to approve prohibited transactions.

The Benefits of Staking in the Metaverse

The staking PoS mechanism is becoming more popular as a digital asset in the digital platform ๐Ÿคณ.

And its staking rewards are more satisfactory than traditional investments.

Lower Barrier to Entry

For those who are willing to support crypto networks while making some hands-off cash ๐Ÿ‘Œ, this investment activity is their perfect opportunity to enjoy metaverse & gaming. It’s an easy way to get metaverse coins and epic games ๐ŸŽฎ through a transparent investment organization.

The staking system also doesnโ€™t need an expensive investment in equipment. All you need is some crypto and a smart contract to get a base reward from PoS. 

Ecological Benefits

Unlike proof of work, staking doesn’t burn ๐Ÿฅต an exorbitant amount of power. For those who object to online worlds because of the huge amount of electricity and processing power required, PoS can provide a path forward that protects digital worlds as well as our physical world. 

What Is Staking in the Metaverse Right Now?

Before you begin staking, it’s important to understand all the risks involved. This form of crypto-backed lending has not been around in the blockchain platforms for as long as mining, which has been around since 2009 (Bitcoinโ€™s launch). Therefore, itโ€™s still a pretty experimental technology.

Even so, staking appears to be a great alternative to PoW for many third-party platforms and cryptocurrencies. Once you feel versed with the fundamentals, you can start staking with a small number of crypto assets. As you get more comfortable with your virtual experience in staking, you can move up โ†—๏ธ and enjoy metaverse games ๐Ÿ™†โ€โ™€๏ธ and other digital experiences while (hopefully) reaping some financial rewards. 

For example, the Ethereum metaverse, which takes place in a decentralized blockchain and a decentralized manner, is moving to a PoS system with Ethereum 2.0. As active users with any amount of Ethereum in your wallet, you can help secure this decentralized platform and earn financial rewards as your passive income ๐Ÿค‘ right now without any special equipment or knowledge of programming language. 

Metaverse Staking: The Future of Online Worlds

Our online experience is constantly evolving, and staking in the metaverse promises to be a big part of that. Not only can you explore virtual worlds; you might be able to profit from metaverse platforms every if you don’t have expensive equipment or insider knowledge like Mark Zuckerberg ๐Ÿค‘.ย 

Keep up on the latest opportunities for staking in the metaverse along with other Web3 news with Ian Corzine’s newsletter. Stay up to date on non-fungible tokens, game assets, guild expansion, and much more!