METAVERSE AND ITS INVOLVEMENT WITH NFTs (TOPMETA INVESTMENT GUIDE)
Evolving technology blurs the gap between reality and the virtual world, which helps revolutionary tech trends such as web 3 and Metaverse to develop. While these technologies are powerful, blockchain and its popular use cases like NFTs power them to help unlock the true potential of any supporting platform.
Before we dive into the key points point of this article, let’s get a definition of the two relating icons of the above “ METAVERSE” & “NFT”.
What is Metaverse?
Metaverse is more of a hypothetical iteration of the Internet, which is regulated through VR and AR technologies. Metaverse is an immersive 3D virtual world focused on creating a more exciting digital experience.
What are NFTs in the Metaverse?
In details, NFTs are non-fungible tokens that represent someone’s ownership of digital assets such as social media posts, digital art, painting, signature, and so on. In addition to tokenizing the intangible or digital content, NFT can also represent the tokenized version of real-world assets, including land and building.
NFTs exist on the blockchain, which was initially useful to trade digital assets, demonstrating the role of NFTs within the digital environment of the Metaverse, NFTs integrate with existing VR and AR technology and thus regulate the whole space.
Like every other innovation, the Metaverse is also undergoing various experiments, and many organizations are trying to launch new-age projects by leveraging the underlying technology of Metaverse. In this regard, let’s explore the Metaverse world and understand it relation to NFTs. .
How does NFTs work in the Metaverse?
NFTs work in the Metaverse as real-world objects work in the existing universe. Simply highlight, NFTs are the key component of the emerging Metaverse where viability heavily relies on the tokenization of assets.
Every Metaverse project, gaming or enterprise, has to blend NFTs and Metaverse to utilize their combined benefits. Some tech experts even consider Metaverse and NFTs corresponding with each other. NFTs have multiple utilities in the Metaverse. From granting ownership of assets to powering interoperable blockchain games, the role of NFTs is integral.
However, the major reason NFTs are so popular in the Metaverse is their viability in blockchain games. Interoperable games drive the development of gaming Metaverse by complimenting the virtual world. A further role of NFTs in the Metaverse includes:
- Metaverse provides users access to their digital avatars (the replication of real-life identities) through NFTs. Every avatar is tokenized to prove ownership for the respective character.
- Events held in the Metaverse, like music concerts and live events, use NFT ticketing technology to distribute tickets to the desired audiences.
- Trading in-game collectibles and accessories like skin, armors, and tanks are bought and sold using the NFT system to provide ownership and transfer it for trading in the secondary market.
How do NFTs shape the future of Metaverse?
NFTs can transform the way users interact with traditional social media paradigms and socialize with each other. So here are some future digital characteristic of NFTs in relation to the metaverse.
A fair and transparent economy: With NFTs, players can participate in play-to-earn games and earn their contributions. Most of these games involve guilds that act as intermediaries to purchase gaming assets, collectibles, land, and other properties. The responsibilities of guilds also include funding the players who ran out of capital.
This helps promote a transparent and fair economy as anyone can join play-to-earn games and earn yield even when they are just starting with zero capital in hand.
Next-generation of social experiences: Holding unique NFT avatars, users can prove their identity among various avatars available in the virtual space. Brands can use their NFT avatars to interact with targeted audiences, discuss the perspectives of their projects with like-minded people, and thus solve many problems.
Owing to the NFT avatars, social media users can meet the avatar of their connection or social media friend rather than having a text-based chat or video call. Since NFTs have non-fungible properties, each NFT avatar is unique and has a real-world identity. Plus, users have complete freedom to design and curate their personalized virtual avatars on the Metaverse.
Virtual real estate trends:Users can also buy virtual properties in the Metaverse like the real world. The underlying blockchain technology and NFTs let users hold ownership and develop virtual real estate based on their choice. Users have the freedom to buy and sell these virtual properties and rent them for passive income.
Moreover, they can build different structures such as online stores on the virtual land and utilize these spaces to host social events.The idea of virtual real estate has attracted many industries as it enables the selling of tickets and merchandise online.
Furthermore, NFT trading in the Metaverse is prevailing. This virtual product can either be the digital representation of a real product or a ‘unique’ product that exists only virtually, like tweets and png images. Even though these products do not physically exist, people spend huge real money buying them.
In the realm of the Metaverse, people owning virtual products gains similar benefits to buying one in real life. Like, it’s not surprising if you see someone spending thousands of dollars to drive a high-end racing car to win a race. Not just buying, the avatars in the Metaverse interact with each other to discuss deals and buy/sell assets via NFTs. Hence, NFTs serves as a crucial component for trade and exchange-related activities for the Metaverse.
The game and art industry are the early adopter of NFT technology, and it holds the potential to attract younger audiences more than any blockbuster movie or sports broadcast. Nowadays, even popular brands sell the digital version of their product before the real product is introduced in the market. This way, NFTs help brands to gain popularity among potential audiences and effectively engage them.
Counterfeiting is one of the biggest problems for many industries. Even big brands struggle to maintain the value of their products, knowing that they can be counterfeited and sold at cheaper prices. In the real world, details of the product and design specificities separate replicas from the original product, but how can scarcity be maintained in the virtual world? That’s where NFTs helps.
NFTs are powered by blockchain and its non-fungible, which offer immutability in records and unique ownership features. Products, be it avatar or digital asset, once tokenized with NFT, cannot be replicated even though virtual products are easy to replicate. Without digital scarcity, it’s hard to seek survival in the Metaverse as anyone can counterfeit products and damage the whole system.
In depth, the evolution of virtual reality, increasing accessibility of the internet, and the mass option of blockchain technology will complement the Metaverse, helping it cater to the rising trends in demand. However, we all look forward to living in the decentralized interoperable Metaverse and utilizing its benefits. Let’s brace ourselves to experience the fantastic possibilities that Metaverse is yet to bring for all of us.
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