What Makes The Metaverse Tick? The Power Of Wallets And Digital Identity

At the recent Benzinga Future of Digital Assets event, discussions centered on how blockchain technology is shaping new economic models.

Alex Salnikov, co-founder and chief strategy officer of Rarible, explored how wallets and digital identities redefine participation in the metaverse. In a panel discussion moderated by Money20/20 Amsterdam‘s Ian Horne, Salnikov delved into practical strategies and challenges for blockchain's adoption.

Redefining the Metaverse

Salnikov wasted no time addressing what he called a widespread misunderstanding of the metaverse. Moving beyond the common association with game-like visuals and virtual spaces, he described it as an interconnected system rooted in financial infrastructure and digital identities. "Metaverse interface is not visual," he said, clarifying that tools like wallets serve as the core enablers of online identity.

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Salnikov pointed out that for users deeply engaged in the crypto economy, wallets become extensions of their personal identity. "I have my wallet that shows up to these events, and my wallet is me online," he explained, highlighting the need for accessible technology to support this shift.

Solving Scalability to Drive Adoption

According to Salnikov, mass adoption of NFTs and the metaverse hinges on addressing scalability challenges within blockchain infrastructure. He described wallets as the essential gateway for onboarding users into crypto and Web3 applications. "There is no NFT adoption without crypto adoption and without wallet adoption," he emphasized.

He noted that the industry is actively working to streamline the technology, aiming to make wallets more intuitive and secure. He linked the ability to onboard millions of users to achieving breakthroughs in scalability, stating, "Web3 is trying to solve the scalability issue that would lead to wallet adoption, that would lead to crypto adoption by millions of people."

Building Community Through Collaboration

The panel also explored how brands and businesses can meaningfully engage with the metaverse. Salnikov urged companies to collaborate with established Web3 platforms instead of building standalone ecosystems. "My advice for brands would be not to try to build their metaverses but to join the metaverse meaningfully," he said.

Salnikov shared examples of successful partnerships, such as Mattel's digital Hot Wheels sales and Lamborghini's NFT collaborations, illustrating how businesses can enter the space in a way that resonates with crypto-savvy audiences.

A Framework for the Future

Reflecting on the lessons of previous market cycles, Salnikov acknowledged the issues caused by excessive speculation during the NFT boom. However, he expressed optimism about the current trajectory, driven by efforts to build a robust infrastructure and cultivate authentic communities.

With its emphasis on wallets and digital identity, the discussion provided a detailed roadmap for integrating blockchain technology into everyday life. Events like the Benzinga Future of Digital Assets continue to host conversations that drive blockchain adoption forward, offering fresh perspectives on how Web3 can redefine the digital economy.

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