Lampros Tech

Merits of Blockchain and Blockchain’s Challenges With Metaverse

Imagine if Web 3.0 of metaverse met Web3 of blockchain technology. How can metaverse and blockchain technology benefit from each other? What are some advantages and what are some challenges that the metaverse and blockchain technology would face? Well, sit back and join the readers who ponder the same.

In this blog, we’ll recap what Web3 and Web 3.0 are. And later, see how blockchain technology helps the metaverse become a decentralized version of a virtual universe. We’ll also explore the challenges blockchain technology might face in implementing its protocols in artificial reality.

Okay, so before we head to the break of Web3 and Web 3.0, I need you to realize that the previous iterations of the world wide web are pretty much the same.

web 1 web 2 and web 3 in three different blocks

Web 1.0 was a read-only web, which evolved into a read-and-write web — Web 2.0. The additional features in Web 2.0 were the secure login from the central ID and making it more interactive.

On Web3

Web3 is a decentralized version of cyberspace. A rendition where a digital (virtual) ledger stores all information passed, messages relayed, and details of payments.

Further, the information in each block is secure with encryption. A private key helps one decrypt the message inside the block. 

Consequently, the public key behaves as the identity of the wallet address. The encryption makes sure that the information is safe inside the ledger.

multiple black blocks connected together in a black virtual space

Furthermore, multiple computers verify the transactions and carry out the role of miners or validators. These validating checkpoints are often known as “nodes.”

Some of the features of Web3 are decentralization, transparency, security, collaboration, permissionless-ness, and trustlessness.

On Web 3.0

The Semantic Web experience starts with a version of the Internet comprising features such as machine learning, artificial intelligence, and the Internet of Things.

a humanoid trying to read and comprehend

Further, Web 3.0 easily integrates with the current version. Data collection through third-party servers, personalized content, efficient search data based on your preferences, and data interoperability across platforms and devices are all part of the Semantic Web experience.

On Blockchain and Metaverse

Blockchain is a tool for the third iteration of the World Wide Web. The goal of this version of cyberspace is decentralization.

The meta-universe, on the other hand, is an extension of the IoT. It provides a space for humans to escape reality and immerse themselves in an XR [X = virtual, augmented, generally, extended reality].

a banner of metaverse

Blockchain + Metaverse = A WONDERFUL EXPERIENCE

We’re now aware of Web3 and Web 3.0. This section explores the possibilities of how Web3 and Web 3.0 can come together to make XR an amazing decentralized reality.

In addition to the advantages that DLT brings, blockchain technology has a revolutionary potential to create and interact with XR.

Blockchain technology can revolutionize the metaverse experience by providing several key benefits that can help make the metaverse platform better. Some ways are:


A blockchain-based metaverse can be decentralized, meaning that the power and control of the platform are distributed among its users rather than being centralized in the hands of a few individuals or organizations. Decentralization can help create a more democratic and fair metaverse, where users have a say in the platform’s development and management.


Blockchain technology provides a high level of security, making it possible to create a secure and trusted metaverse that protects users’ data and assets. Through encryption and other security measures, blockchain-based metaverse platforms can ensure that users’ information is private and that secure transactions occur.

a padlock and a bitcoin on sand in front  of a blue background


Blockchain technology can enable interoperability between different metaverse platforms, allowing users to move seamlessly between different virtual worlds and transfer assets and data across platforms. Interoperability can create a more interconnected and vibrant metaverse ecosystem.

rows of various blockchains

Digital Ownership

A blockchain-based metaverse enables users to own and control their digital assets and data and lets them buy, sell, trade, and transfer virtual assets like NFTs and cryptocurrencies. Thus creating a new economy within the metaverse, where users can earn real-world value from their virtual assets.


Imagine a metaverse with the features of a blockchain. A virtual land where data is transparent yet secure, actions are accountable, and everyone participates in decision-making.

By employing smart contracts and other tools, developers can create a transparent and auditable system for managing the interactive platform.

But… Blockchain and Metaverse Needs to Solve a Few Issues First.

Sure, we can have a blockchain-based metaverse. You can try some of the blockchain-based metaverses such as The Sandbox, Decentraland, Enjin Coin, and much more. But wait for Q4 of 2023, when you can explore Shiba Inu’s metaverse platform too!

However, before we create and build an entire virtual universe on a blockchain (layer), we must first realize that creating a metaverse that runs on a blockchain is a complex task. The task presents several challenges and problems. Some of the major problems are:


One of the biggest challenges in building a blockchain-based metaverse is scalability. The number of transactions and data stored in a blockchain can be overwhelming, leading to slow processing times and high fees. Developers will need to find solutions to increase the scalability of their blockchain platform to accommodate a large number of users.

one main ether connected to many little different ether logos

Potential Solutions

Sharding: Developers can use sharding to break up the blockchain into smaller, more manageable parts that can process transactions independently, which can significantly increase the network’s capacity to handle a large number of transactions.

Layer-2 scaling solutions: Developers can use layer-2 scaling solutions such as side chains or state channels to process transactions off the main blockchain, reducing the computational requirements of the network.

Upgrade the consensus mechanism: Developers can explore alternative consensus mechanisms that prioritize scalability, such as proof-of-stake (PoS), which requires less computational power to validate transactions than proof-of-work (PoW) mechanisms.


Different blockchain networks may have different technical specifications, which can create interoperability issues when connecting different parts of the metaverse. Developers must ensure that the various components of the metaverse can communicate with each other seamlessly, regardless of the underlying blockchain technology.

Potential Solutions

Develop common standards: Developers can work together to develop common standards for blockchain interoperability. Standards ensuring that different blockchain networks can communicate seamlessly.

Cross-chain bridges: Developers can use cross-chain bridges to connect different blockchain networks and facilitate the transfer of assets and data between them.

Middleware: Developers can use middleware solutions that act as intermediaries between different blockchain networks to facilitate communication and interoperability.


A secure blockchain-based virtual space would prevent hacks and other security breaches that could cause significant damage. Developers must implement robust safety measures to ensure users’ data and assets are safe from cyberattacks.

Potential Solutions

Encryption: Developers can use encryption to protect users’ data and assets from cyberattacks.

Multi-factor authentication: Developers can implement multi-factor authentication to provide an additional layer of security for user accounts.

Conduct regular security audits: Developers can conduct regular security audits to identify and address vulnerabilities in the platform.

User Adoption

One of the biggest challenges for a new metaverse is attracting users to the platform. Developers need to create a platform that is user-friendly and offers compelling features to encourage users to join and stay.

Potential Solutions

Focus on user experience: Developers can focus on creating a user-friendly platform that is easy to navigate and offers compelling features that appeal to users.

Offer incentives: Developers can offer incentives such as rewards or bonuses to encourage users to join and stay on the platform.

Leverage social media: Developers can leverage social media to promote the platform and attract new users.


A decentralized metaverse would mean that users get to control the platform with equal power vested in everyone. Decentralization demotes centralization and promotes openness, transparency, and democracy.

many computers across direct points behave as nodes to validate transactions

Potential Solutions

Decentralized governance: Developers can implement decentralized governance mechanisms that give users a say in how the platform develops and operates.

Scattered storage: Developers can use decentralized storage solutions to ensure that data is stored in a decentralized manner, reducing the risk of data breaches.

Individual identity: Developers can use individual identity solutions to ensure that the user controls their identity. This provides them with ownership and responsibility.


In summation, Web3 and Web 3.0 are very different concepts that aim to make the internet a better place. While Web3 deals with a decentralized version of the internet with smart contracts, nodes, staking rewards, and DeFi, Web 3.0 deals with XR, IoT, machine learning, and artificial intelligence.

Further, it is possible to have a metaverse built on top of a blockchain to experience a decentralized environment. A metaverse that is transparent, stores information, messages, and payment details in blocks, and provides security through encryption, is a wonderful concept.

But Web3 will have to pull through some problems about Scalability, Interoperability, Security, User Adoption, and Decentralization. When the right steps are taken to sort out the issues, a developer can seamlessly create a world of their own on a blockchain.