Goldman Sachs Believes Blockchain Will Drive the Metaverse
Leaders at investment bank Goldman Sachs have a lot to say about the Metaverse, and believe one particular technology will be the key to its development. Blockchain will be at the center of the Metaverse, as it will be the technology that allows to safely own assets and transfer them between virtual worlds.
The Metaverse is a somewhat nebulous term that describes virtual worlds in which people – taking the form of avatars -- can game, work, play, socialize, shop and more.
“Blockchain is the only technology that we believe can uniquely identify any virtual object independent of a central authority,” said Goldman Sachs in its report on the Metaverse. "
Further into the report,The company noted if virtual goods or services cannot be moved from one space to another, it will limit their valuation in the metaverse, and consequently, their monetization. This is where blockchain comes in with its ability to secure transactions.
“Investment implications are hard to predict at this juncture, but companies who are dependent on centralized control of user identity will likely find their business models challenged by the adoption of blockchain,” according to the report.
Writing for Forbes, contributor Sean Stein Smith agrees.
“The promise of the metaverse is that it will provide users an augmented reality experience that – in many ways – might exceed physical reality in terms of the experiences and opportunities therein,” wrote Stein Smith. “What is oftentimes missing from the discussions around the potential of the metaverse is how all of this information will be secured and protected. If, for example, individuals are going to be spending increasing amounts of time in this virtual reality, how can they be sure that their transactions and associated information will be secure?”
Blockchain and blockchain platforms have proven, notes Stein Smith, to be unhackable and immutable, which is critically important if any virtual reality platform is to achieve mainstream adoption.
Edited by Luke Bellos
