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Those who use the Metaverse can do anything they do in real life in the virtual world. People transact, create, socialize, and play through hardware, programming languages, smart contract platforms, and a base hardware layer. As emerging digital-physical realities, economies, and communities, metaverses transcend fiction into reality. the Metaverse is heavily influenced by Decentraland and The Sandbox. ENS is an Ethereum (ETH)-based naming system that drives identity software, essential for verification, security, accessibility, and avatars. The number of ENS registrations increased by around 18%, from 5,158 in December 2020 to 109,280 in December 2021, illustrating its growing popularity.

Among the key characteristics of the Metaverse are its ownership, decentralization, interoperability, opensource nature, and virtual nature, which are also central to Web 3 and the digital revolution. Several key players have been able to improve infrastructure across the Metaverse "stack" so that the Metaverse can become a more personal, continuous, and immersive experience.

With more than 200,000 items alone on OpenSea, the virtual world hosting OpenSea, one of the NFT trading platforms, heavily influences metaverse marketplaces. Ethereum NFT platforms OpenSea and Rarible have a combined number of approximately 80,5 million NFTs and USD 10,3 billion in sales volume, with OpenSea controlling 99% of the minted NFTs and 97% of the total sales revenue. OpenSea dominates the ETH NFT trading market, but Rarible has been around for over two years. The market for ETH NFT alone has grown year-over-year (YoY) by about 31,027%

to USD 3.1bn in December 2021. Across the entire NFT market, daily transactions increased by 3,192% YoY to just under 520,000 transactions per day. Out of USD 121bn in gaming industry revenue in 2021, the top five GameFi organizations incurred a total of USD 90m in sales volume, with 161,000 users aiming to satisfy 3.2bn gamers worldwide.

A centralized service provider controls the application, technology, information, media, and content ecosystem. There are, however, challenges with interoperability, costs, and walled gardens. Clear, concise regulations and technological advancements are needed. The masses can only be onboarded with confidence in businesses and a shift in consumer behavior.

Open source blockchain models of "Know Your Customer" (KYC) could be developed, lowering costs and improving the efficiency and effectiveness of verifying identities and activities. Hardware costs should decrease as technology advances, and oracles, sidechains, application-layer adapters, and blockchain-agnostic smart contracts must reduce gas fees and improve security, decentralization, throughput, and convenience.

Despite the current hype surrounding Metaverses, advancements and policy changes will take time. Investors and consumers may realize that this hype doesn't live up to its hype this year, which may lead to Metaverse fatigue. 

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What Crypto Will do to the Metaverse and How

There is a misconception that the metaverse will be a bunch of interconnected virtual spaces - the Internet but accessed through virtual reality. It is mostly correct, but the metaverse also has a fundamental, slightly cryptic element that will make it stand out from today's Internet: blockchains.

When Web 1 launched, it was an information superhighway of connected computers and servers that you could search, explore, and inhabit, usually via a centralized company's platform - for example, AOL, Yahoo, Microsoft, and Google. As the turn of the century approached, Web 2 began to be characterized by social networking sites, blogging, and monetizing user data by centralized gatekeepers of "free" social media platforms, including Facebook, Snapchat, Twitter, etc. TikTok.

Metaverses will be built on Web 3. Through blockchain-enabled decentralized applications, users will own crypto assets and data. Having studied social media and media technology, we can explain how the metaverse will function. What is blockchain? Is it decentralized? What are crypto assets?

Getting your hands on bits

Typically, a blockchain is a decentralized public database that permanently records transactions. Bitcoin is one of the most well-known blockchainbased cryptocurrencies. When you buy Bitcoin, the transaction is recorded on the Bitcoin blockchain, which means the record is distributed across thousands of computers worldwide every time you buy Bitcoin. It is complicated to fool or control this decentralized recording system. In contrast to traditional banking books, public blockchains, such as Bitcoin and Ethereum, are also transparent - all transactions are visible to everyone on the Internet.

Currency, securities, and artwork that can be owned are crypto assets. Like Bitcoin, Ethereum is a blockchain, but Ethereum can also be programmed through smart contracts, essentially software routines that run automatically based on predetermined conditions. Smart contracts on the blockchain can, for example, identify the owner of a digital object, such as a piece of music

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or art, so no one else can claim it - even if they save copies.

Artwork and music are nonfungible tokens (NFTs). Nonfungible items, such as nonfungible currency, cannot be replaced, while fungible items, such as fungible currency, can be exchanged for fungible currency. There will be an exhibition of nonfungible tokens (NFTs) in Miami Beach in November 2021, featuring these images.

You can create a smart contract if you wish to sell your piece of digital art for USD 1m in the Ethereum blockchain token, Ether. When I click "agree," the artwork and Ether automatically transfer ownership between us. The artwork is not held in escrow by a third party.

What is the relationship between blockchain crypto assets and the metaverse? They are all connected! Blockchains facilitate the ownership of digital assets in the metaverse. As a result, if either of us disputes this transaction - for example, if you say that I paid USD 999,000 instead - the other can easily refer to the public record in the distributed ledger. NFTs will not only be owned in the real world. They will also be owned in the virtual world. Moreover, the metaverse isn't being built by any group or company. There will be different virtual worlds constructed by different groups, which will eventually become interoperable - forming the metaverse. People will want to take their stuff with them when they

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move from Decentraland's virtual world to Microsoft's. If both virtual worlds are interoperable, blockchain will authenticate your ownership of digital goods. In essence, you will be able to access your crypto stuff as long as you can access your crypto wallet.

Make sure you have your wallet with you

Why do you think you'll keep crypto in your wallet? You'll want to carry cryptocurrencies. In addition to your crypto wallet, you can also store your avatar, avatar clothing, avatar animations, virtual decorations, and weapons, which are available only in the metaverse.

Avatars are cartoon-like animations populated by people in the metaverse, such as this portrayal of El Salvador President Nayib Bukele.

In the future, what will people do with their crypto wallets? They'll shop, for starters. It will be possible to purchase traditional digital goods such as music, movies, games, and apps, just as you do now on the web. Furthermore, you'll be able to purchase physical-world items in the metaverse, and you'll be able to view and feel 3D models of what you are shopping for, which could help you make better decisions.

Additionally, just as you can carry your ID in a leather wallet, crypto wallets will be linked to real-world identities to facilitate transactions that require legal confirmation, such as buying a real-world home or car. Access to agerestricted areas of the metaverse will also be controlled with ID-associated wallets. You won't have to remember login information for every website and virtual world you visit since your ID is linked to your wallet. Your wallet will take care of everything.

Spreading misinformation can damage the reputation of toxic trolls. Eventually, future wallets that are linked to reputation scores may also allow you to broadcast and interact with people outside your social network. Your influence may also decrease. If people are to behave well in the metaverse, platform developers need to prioritize these systems.

Big business

Finally, if the metaverse is money, companies will certainly want to participate. People can work, play, and congregate on platforms provided by companies like Meta. While there is no metaverse yet, people and businesses are grabbing virtual land in a land rush. Despite blockchain's decentralized nature, companies will still have many revenue-generating opportunities, perhaps even more than today's economies.

Coca-Cola, Adidas, and Nike are among the major brands involved with the NFT. You might one day gain ownership of a linked NFT in the metaverse when you buy an item from a company. You might purchase the crypto version of the outfit your avatar can wear to the virtual Ariana Grande concert if you buy that coveted name-brand outfit to wear to the realworld dance club. The NFT version of the outfit can also be sold for someone else's avatar to wear, just like you could sell the physical outfit secondhand. There are many ways in which metaverse business models overlap with the physical world. As augmented reality technologies gain traction, these examples will become more complex as they merge aspects of the metaverse with the physical world. Despite the fact that the metaverse does not yet exist, technological foundations like blockchains and cryptoassets are steadily developing, preparing the stage for a seemingly ubiquitous virtual existence. 

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Walmart is Making Quiet Moves in the Metaverse

Walmart is entrenching itself in the metaverse by developing its own cryptocurrency and collection of NFTs�

Last month, the big-box retailer filed several new trademarks showing its plans to make and sell virtual goods�

Walmart said it would offer nonfungible tokens as well as a virtual currency�

Walmart is reportedly considering creating its own cryptocurrency and a collection of non-fungible tokens, or NFTs. Last month, a big-box retailer filed several trademarks indicating its intent to make and sell virtual goods, such as electronics, home decor, toys, sporting goods, and personal care products. The retailer said in a separate filing that users would be able to use virtual currencies and nrfts. Walmart filed the applications with the United States Patent and Trademark Office on Dec. 30.

Seven separate applications have been submitted. Walmart said it is "continually exploring how emerging technologies may shape future shopping experiences." It declined to comment about the specific trademark filings. "We test new ideas all the time," Walmart said. "Some ideas become real products or services. Others are tested, iterated, and learned from." An attorney, Josh Gerben, said there are a lot of trademark filings. "They are filled with a lot of language,

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which shows that a lot of planning is going on behind the scenes about how they will deal with crypto, how they will deal with the metaverse, and how they will promote the virtual world that is either coming or is already here."

According to Gerben, businesses have been rushing to figure out how they will integrate into a virtual world ever since Facebook announced its name would change to Meta, indicating its ambition beyond social media. In early November, Nike filed a slew of trademark applications that hint at plans to sell virtual-branded sneakers and apparel. The following month, Nike announced it was teaming up with Roblox to create an online world called Nikeland. In December, the company purchased the virtual sneaker company RTFKT (pronounced "artifact") for an undisclosed sum.

Suddenly, everyone is saying, 'This is becoming a very real situation and we need to protect our IP,'" Gerben said. NFTs of Gap's iconic logo sweatshirts have also been introduced. It said its NFTs will have tiers ranging between $8.30 and $415, and come with a physical hoodie. Recently, Under Armour's and Adidas' NFT debuts were both sold out. OpenSea's NFT marketplace now sells them for sky-high prices. According to Gerben, apparel retailers Urban Outfitters, Ralph Lauren, and Abercrombie & Fitch have also filed trademarks recently indicating their intent to open a virtual store. According to CB Insights, retailers and brands may make such ventures for several reasons, including the potential for bringing in new revenue streams.

Through the launch of NFTs, businesses can tokenize physical products and services to reduce online transaction costs, the company said. According to CB Insights, NFTs can serve as an authentication method for luxury brands like Gucci and Louis Vuitton.

Retailers will develop their own ecosystems around the blockchain as consumers become more familiar with the metaverse and items stored on it, according to Gerben. Several retailers are still reeling from being late to e-commerce, so they don't want to miss out on the metaverse, according to Frank Chaparro, director of cryptoinformation services firm The Block.

"I think it's a win-win for any retailer," said Chaparro. "There isn't much reputation damage in just trying something out like giving some customers a NFT in a sweepstake, for instance, even if it turns out to be a fad."  "They are filled with a lot of language, which shows that a lot of planning is going on behind the scenes about how they will deal with crypto, how they will deal with the metaverse, and how they will promote the virtual world that is either coming or is already here� "

Josh Gerben An attorney

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'Tornado Cash' Raises Money Laundering Concerns

Crypto.com decided to freeze withdrawals following a "security incident" that caused cryptocurrency prices to be routed by risk aversion. In an announcement, the Singaporebased exchange said hackers had stolen at least $15 million worth of Ethereum (ETH) tokens and potentially as much as $33 million and promised to reimburse those affected. Crypto.com faulted some accounts for not using two-factor authentication during the breach but did not provide many other details. Information security specialists and amateur blockchain investigators on Twitter were already tracing the hacked funds. Almost half pointed to a noncustodial Decentralized Finance (DeFi) mixing service called Tornado Cash. But the trail ends there. One of the few legal cryptocurrency mixing protocols that can obfuscate transaction histories is Tornado Cash (TORN), itself an intelligent contract token.

Although hackers use blockchain mixing services, they are not necessarily illegal. While mixers are part of the growing crypto ecosystem, they provide a way for criminals to launder money without being explicitly classified as money laundering. As a result, crypto proceeds are being washed in a way that alarms investors and law enforcement - already battling an increase in illicit activities in the sector amid a debate over how to regulate a booming digital coin movement.

In December, cryptocurrency washed from Bitmart, a cryptocurrency exchange, using Tornado Cash. Tornado Cash is based on zero-knowledge proof, says Victor Fang, CEO, and Founder of blockchain analytics firm Anchain AI. "This is advanced cryptography, MIT's Turing-awarded work, the highest award in computer science," said Fang, who chuckled in awe of the technology behind the protocol.

Anchain reports that Tornado Cash processed over $10 billion worth of crypto transactions last year, with an

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increasing number of criminal cases involving the protocol handled by Fang's firm. According to him, "Privacy is not a crime, but criminals actively seek out privacy solutions. What we've seen so far is only the tip of the iceberg, the beginning of future developments."

Loot worth billions is being laundered.

Digital coins are notoriously difficult to track, especially when money laundering. It is estimated that around 2-5% of global growth (roughly $2 trillion) is laundered in fiat currencies, but the figure is not regularly updated. With crypto's market capitalization topping $1.7 trillion, experts say crime is a shrinking portion of those flows. According to a Chainalysis report released Wednesday, the amount of blockchain-based loot being laundered is still $8.6 billion. At 0.15% of all sector transactions, crypto-based crime is still relatively low, reaching a record high of $14 billion. Chainalysis tracked crypto money laundering for the past year, but funds from mixed services were not counted as illicit, says Chainalysis' research director Kim Grauer. The amount of laundered funds increased by 30% in 2021 compared to the previous year, indicating money sent from a crypto wallet marked as illicit. Funds were then transferred to another platform for trading, gambling, DFS, mixing, or other purposes.

It is only through "decades-long and hard-won investigations" into specific financial firms that Grauer has been able to track illicit flows. According to some, it could be made more accessible by using digital ledgers. Grauer said that there is no comparable data set to measure criminal activity in fiat currencies, so the cryptocurrency cannot be more effective at fighting crime. According to Chainalysis data, mixing services are still the destination of illicit crypto funds. Grauer has found that customers' funds sent from mixers can be a red flag in his conversations with compliance officers since mixing services send a lot of money to firms.

The "blank check"

On January 24, 2022, the cryptocurrency Ethereum is shown next to a stock chart and a U.S. dollar. While algorithmic tools provide precise data, curbing crypto laundering requires coordination between law enforcement and private companies, which must be improved in the eyes of regulators. As a result of DeFi's boom, illicit wallet use has increased from 2% in 2020 to 17% over the past year, showing the sector's high theft rate. Stealing hot money continues to be a top priority for crypto exchanges, which received 47% of all illicit funds tracked over the last year because of scams. Criminals use cryptocurrency on- and off-ramps to convert their loot into less traceable cash, so blocking, or at least monitoring, these exit points is one way to stop illicit cryptoflows. Regulators are seeking to bolster their surveillance and reach these critical junctures increasingly.

The U.S. Congress is considering legislation that would give the Treasury broad authority to prohibit or freeze digital assets, especially if they relate to foreign banking institutions, transactions, or if "one or more types of accounts are of primary money laundering concern." In a broader debate about crypto regulation, some market players see the provision as a "blank check" for regulators to muzzle the benefits of crypto. Although they both have U.S. subsidiaries, FTX and Binance, two of the largest cryptocurrency exchanges, qualify as foreign banking institutions. Some argue that they may run afoul of Treasury's interpretation of that statute.

Law and Forensics attorney David Cass, a former crypto and stablecoin researcher at the Federal Reserve, says regulations are necessary for cryptocurrency to gain traction. Law and Forensics' cofounder Daniel Garrie believes Tornado Cash and other crypto mixers could have an impact on how regulators facilitate cooperation. "If you interact with them, then you cannot participate in the U.S. banking system," Garrie said. "But there are caveats." 