Metaverse and Cryptocurrency

Question 1

What is the Metaverse?

Answer 1

Metaverse = A new paradigm for how we will use and interact with digital technology within an immerse virtual environment.

Question 2

Advantages of Metaverse.

Answer 2

1. Changes to Education - experiences where students can be shown historical events better through VR, but not economically sustainable.
2. Changes to Work - better job training, all work online and can be done anywhere in world.
3. Changes to gaming - make money whilst gaming.
4. Changes to concerts - higher virtual audiences - revenue.

Question 3

Disadvantages of Metaverse

Answer 3

1. Addiction and mental health issues.
2. Distortion of Reality.
3. Harassment in Metaverse - AI not able to recognise inappropriate words + content.
4. Moderation in Metaverse - not just words but personal space in metaverse.

Question 4

What is Cryptocurrency?

Answer 4

Cryptocurrency = Digital or virtual currency that is secured by Cryptography, which ensures the safety of a transaction.

• Many Cryptocurrencies are decentralised networks based on BLOCKCHAIN technology.

Question 5

How is Cryptocurrency produced?

Answer 5

• Crypto is created through a process called mining which involves using computer power to solve complicated maths problems that generate coins.

Question 6

How is Cryptocurrency stored?

Answer 6

• Crypto is stored in digital wallets.

When you buy crypto, you don’t have anything fungible, but you only have “keys” that you can store.

Question 7

How does BLOCKCHAIN work?

Answer 7

• A blockchain consists of growing lists of records (BLOCKS), that are securely linked together using Cryptography.

Each block contains a Cryptographic hash (data, link) of the previous block proving that the transaction existed when the block was existed.

Question 8

Advantages of Cryptocurrency

Answer 8

1. Decentralised System - Less risk of single point of failure (such as banks).
2. Decentralised from banks which feed corrupt Government in some countries.
3. Easy + fast movement of funds without 3rd party.
4. Can be used to transfer real money across international borders without high exchange costs.
5. Blockchain makes it secure + transparent (safer).

Question 9

Disadvantages of Cryptocurrency

Answer 9

1. Not completely anonymous - leaves digital traces.
2. Crypto wallets can be hacked.
3. High price volatility - prices can suddenly change - risky for businesses.
4. Few legal protections.
5. Popular tool for criminal for money laundering activities.

Question 10

How does Crypto work?

Answer 10

1. Bitcoin miners receive Bitcoin as a reward for completing “BLOCKS” of verified transactions.
2. Mining rewards are paid to the miner who discovers solution to complex hashing puzzle.
3. Likelihood that person will be one to solve the puzzle is related to the portion of the network’s total mining power.

• Mining requires sophisticated tech and expertise to solve hash puzzles.

Question 11

Why is Bitcoin gaining popularity?

Answer 11

1. Decentralised - Bitcoin is decentralised from centralised banks, which feed corrupt governments in some countries.
2. Safer - Blockchain records all transactions leading to security over assets.
3. Stable - Movement to asset (Bitcoin) rather than currency means your investment is more stable and less volatile means greater buying confidence, leading to increase in purchases.