Metaverse definition: A virtual reality space where users can interact with each other and digital assets.

A metaverse is a collective virtual shared space, created by the convergence of physically virtually enhanced reality, augmented reality (AR), and the internet. It exists on the internet and can be accessed using various types of software, including both computer programs and, increasingly, virtual and augmented reality headsets. The term is often used to describe a future version of the internet that is fully immersive and contains 3D virtual spaces.

The metaverse is designed to be an environment where users can interact with a computer-based environment and other users in real-time. This interaction can take place in various forms, such as text, 3D avatars, or fully immersive virtual reality. In many respects, the metaverse can be seen as a form of social media, but it extends beyond that to include aspects of gaming, e-commerce, and other types of online activity, including cryptocurrency transactions.

In the context of cryptocurrencies, the metaverse is seen as a frontier for the expansion of digital assets and blockchain technologies. Cryptocurrencies serve as the standard currency within most metaverses, allowing users to buy, sell, and trade digital assets in these virtual worlds.

One such example of a metaverse is Decentraland, a decentralized virtual reality platform powered by the Ethereum blockchain, where users can create, experience, and monetize content and applications. In this digital world, users purchase plots of land with a cryptocurrency called MANA that they can navigate, build upon, and monetize.

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Michelle Legge
By Michelle LeggeHead of Crypto Tax Education
Updated Nov 21, 2023
This article has been fact checked and reviewed as per our editorial policy.