In the recent past, you have probably heard a lot of buzz surrounding two trending topics, the Metaverse and non-fungible tokens (NFTs). Nevertheless, you may not realize that the Metaverse is a good illustration of the application for NFTs. Soon enough, the Metaverse and NFTs could be inherently linked.
You’re probably wondering, isn’t an NFT only a token for digital artworks? How can NFTs then assist you in accessing the Metaverse? Before delving into this matter, you must understand the two concepts.
What are Non-fungible tokens (NFTs) and the Metaverse?
NFTs are digital certificates of ownership that are 100 percent unique and exist on the blockchain network. NFTs have gained popularity in different industries for their ability to protect the copyright and ownership of digital art and assets.
For instance, as an NFT creator, you can learn how to make an NFT and sell it, knowing that your creativity is protected and will pay off.
On the other hand, the Metaverse is a theoretical viewpoint of a digital 3D universe that you can engage in through virtual reality technology. Once in the virtual universe, you’re allocated an avatar body that you can customize, spaces to tour, and a home.
Now that you know what NFTs and the Metaverse are, below are key reasons NFTs could be the key to accessing the Metaverse.
1. Property ownership: virtual real estate
According to Forbes, Virtual plots and lands are one of the fundamental components of the Metaverse. With the help of NFTs, you can effortlessly validate your ownership and embark on developing your real estate as you deem fit. Additionally, you can sell your virtual plot for profit, construct shops, host social events, and rent it out.
Decentaland is one of the most successful use cases of the metaverse virtual real estate concept. Not long ago, Decentraland played host to a virtual fashion exhibition in partnership with Adidas, in which designs got auctioned as NFTs.
In addition, virtual real estate will also present an opportunity for music artists since they can leverage these virtual spaces to sell tickets, merchandise, and perform concerts.
2. Creates an open and fair economy
The interactive gaming industry is anticipated to be a central component of the Metaverse, with most metaverse platforms leveraging a play-to-earn (P2E) framework. As you may be aware, P2E games are backed by blockchain technology. These virtual gaming events offer rewards and enticements for your gaming activity and in-game accomplishments.
As a user, you’ll earn cryptos (the cryptocurrency depends on the Metaverse) according to your gaming activities. You can then choose to exchange crypto for fiat money, NFTs, and other assets. Ultimately, this helps in creating an open and fair economy since, as a player, you’ll acquire full ownership of your assets. That will alter the conventional approach where a gaming entity controls your assets.
Guilds are expected to also play a critical part in creating an open and fair economy. Guilds often act as enabling mediators by buying in-game NFT assets and lending them to gamers who need them in their virtual spaces. The P2E guild benefits by taking a small percentage of the earnings realized by the lendee player. Ultimately, this contributes to creating an open and fairer economy.
3. Extension of Social Experiences, Identity, and Community
NFTs are expected to play a crucial role in facilitating the Metaverse’s community, identity, and social connections. For instance, if you own a certain NFT, you can use it to demonstrate your support for a specific project. Likewise, it can demonstrate your viewpoint concerning the virtual or real-life universe.
You and other like-minded individuals can then come together to form communities through which you can share your experiences while creating content. For instance, an NFT avatar (virtual version of your body) is an extension of your identity as a player. You can leverage your avatar to curate your virtual identity to allow you to gain access to and enjoy these exclusive social experiences.
As the buzz continues to surround the two topics (NFTs and the Metaverse), you need to understand that they are still in their early stages of development. Nevertheless, the earlier you delve into the metaverse world, the better you’ll be positioned to make a fortune as the industry continues to grow rapidly.