Crypto Coins and Metaverse: Does the World Need a Sci-Fi Turned Reality?

Crypto Coins and Metaverse: Technological advancements have always been signifying of the boundless dimensions human minds can travel. Being the curious beings we are, humans have never failed to leave a feather untouched or a stone unturned. Be it through years of dedication and hard work or by accident, inventions and discoveries have only pushed the world miles ahead of the known civilizations. The stories of the present and tomorrow are or will be no different. A new idea is born every second and it is no doubt that creative ideas will rule the world in the coming ages.

From basic calculating machines to networks of computing systems, the way technology has evolved is unparalleled. Not bypassing the long way it has come, the world is eager to welcome more additions to the future of technology. From microchips to humanoid robots, blockchains to augmented reality, the list goes on. As technology takes a new form with every passing second, what has been stealing the attention of tech fanatics, lawyers and common people for a while is the advent of blockchains the developments that followed. As fascinating as the latest additions may sound, it also calls for lawmakers to frame legal authorities to regulate the smooth functioning of such progress and resolve the issues that may arise from their use later.

Blockchains: The Building Blocks to a Virtual Living Experience

Blockchain by definition is “a distributed database that is shared among the nodes of a computer network”. Most commonly used in (including but not limited to) crypto coins systems and non-fungible tokens (NFTs) these days, Blockchain as a term was first coined by a presumed person or group of people with the pseudonym Satoshi Nakamoto in 2008. Its first known application was in Bitcoin, invented by the same author(s) of blockchain with the purpose to develop a decentralized digital currency. Also known as cryptocurrency and crypto coins, the system grew in terms of popularity and use over the years, and is expected to play a fundamental role in the development of metaverse as it facilitates ownership of digital assets which incentivizes further investments.

Although blockchain was invented with an intent to facilitate a peer-to-peer electronic cash system where funds could be transferred online with no entity to control, its enhanced security and incorruptible features attracted various industries to use this strikingly advanced database to store information. Following its debut as the underpinning technology involved in Bitcoin, its potential has been identified beyond that and are extensively used in different areas spanning finance, international payments, supply-chains and much more. Regardless, the regular show-stealers are cryptocurrencies and NFTs.

Into the Metaverse: Key to an Alternate Life

Accidental inventions are not new to the history of humankind. Many accidental discoveries have paved the way to revolutionary changes that altered the way people interact with nature and each other. Cryptocurrency was one such contribution that opened doors to what could have been then treated as the unthinkable.

The potential of blockchains as more than mere tokens of digital transactions didn’t take long to surface, but the multi-faceted use in present times is treated with much awe. Cryptocurrency these days is not limited to just Bitcoin but has created a ripple effect giving birth to various other crypto coins using blockchain technology. The popularity of cryptocurrencies sky-rocketed through the 2010s, experts believe it could play a crucial role in the coming ages of financial transactions and is indispensable in the Metaverse.

NFTs on the other hand and unlike crypto coins are non-fungible, i.e., non-interchangeable digital assets stored on a blockchain. They have unique identification codes and metadata that distinguish them from each other. NFTs are not the same as the currency in a way that they are not identical and hence, can’t be used as a medium for commercial transactions.

NFTs could be anything, artworks, music, games, memes, domain names, etc. and these tokens along with cryptocoins are set to make Metaverse an experience nothing less than real life. What’s challenging in the road ahead is the legal issues that might come up from using these platforms.

Bearing Fruits for the Future: How the Law Can Change

As technology takes a new form every day, the law also has to keep up with the pace of such evolution. With the introduction of blockchains and crypto to the tech industry, the need for requisite legal authorities to serve its purpose was early identified. The law has been transforming ever since. The rules and regulations are different in each country. India’s status in building a strong legal framework for regulating cryptocurrencies and NFTs is still underway.

Although it is pretty predictable as to in what ways cryptocurrencies and NFTs will be used for business, vagueness haunts the clarity concerning law and enforcement in the metaverse. Experts predict the potential legal issues bubbling from the use of metaverse could range anywhere from intellectual property matters to sexual harassment, cyberbullying and discrimination. Hence, it is a matter of time to determine the legal complexities that may arise till the platform falls in place and is operational.

Conclusion

Changes have been crucial in shaping the way people live and treat each other. The way technology evolves these days plays a prominent role in the changing standards of living. Blockchains are total game-changers in the sense that they’ve set a threshold on how fast and advanced the world will look like years from now. The law, although is still adapting to the changing faces of tech and business, it is of no doubt that it will stand at par with the complex web of codes and algorithms.

Author: Hiba Mohasin – a student of National Law University, Jodhpur, in case of any queries please contact/write back to us via email [email protected] or Khurana & Khurana, Advocates and IP Attorney..