What are Non-fungible Tokens (NFTs) and the Metaverse
The metaverse and NFTs are two topics that many struggle to put into context. If like many, you need help understanding the technical jargon on the internet regarding both concepts, don’t worry. We’re here to break things down for you.
The metaverse, firstly, is a theoretical concept of the 3D digital world that one can enter via a virtual reality headset. An NFT is a non-fungible token that has a unique code embedded within its meta data making it a one of a kind crypto asset. So, how do NFTs play a key role in the metaverse? Let’s explore each entity further.
How are the two connected
The metaverse and NFTs are closely linked and work together seamlessly. For example, NFT avatars are forms of digital property. Because they’re so expensive, an NFT avatar with unique characteristics will see its price rise. Another way that the metaverse and NFTs are connected is through access to events.
An event organiser can use NFTs to encourage attendees to attend events and purchase limited edition assets. NFTs are also viable in blockchain games as players can utilise the concept to earn additional income. NFT games allow you to sell in-game NFTs to other collectors and players, trade collectables and even earn tokens with play-to-earn models.
Better community and social experience
When NFTs join forces with the metaverse, this allows space for a better community and an enhanced social experience. Combining a digital world with real-life digital assets greatly benefits users by allowing them to express their consent on a certain project or their thoughts on the real world.
As a result, NFT owners can collaborate more effectively in the metaverse, exchange ideas and broaden their creativity. This also allows for an enhanced community experience where like-minded individuals can come together based on shared goals or hobbies.
Virtual real estate
NFTs can also be used to prove ownership of a virtual space. With the helping hand of blockchain, users can easily prove ownership of virtual real estate assets. Likewise, selling virtual land is just as easy and profitable for many users.
For example, in Decentraland, users can develop plots of land, attend events, participate in social functions, and more. Property value is also equally driven by utility, project details and location.
Types of NFTs in the Metaverse
There are a variety of NFTs present within the metaverse. Whilst this list can be exhaustive, we’ve included some key NFTs to note.
Gaming NFTs are all about playing to earn and have been a big player in the metaverse. There are hundreds of in-game NFTs, from RPGs and card games to shooters, available in the metaverse.
Fashion NFTs are the newest members of the metaverse ecosystem. These NFTs were created by brands such as Louis Vuitton and Gucci, who launched limited edition items in the metaverse for users to purchase as NFTs.
Real Estate/Land NFTs
As previously mentioned, real estate/land NFTs are also a popular form of NFTs in the metaverse. Users can buy virtual land NFTs and use them to expand their virtual property or create new products on the land in question.
Technology has changed the way we go about our lives, with the internet playing a key role in this change. A few examples include the way we communicate with our friends through messaging and social media apps, and the way we seek entertainment through streaming platforms like Netflix, or online casinos like Platincasino UK.
When looking at today’s world it’s impressive to see how far we’ve come and what we’ve achieved as a society, especially from a technological perspective. The development in this industry doesn’t seem to be slowing down either, as seen through the latest craze of NFTs and the metaverse.
Overall, NFTs and the metaverse allow for a combination that will continue to change the world in the coming years. NFTs bring ownership and exclusivity, whilst the metaverse provides the foundation of a digital world. The opportunities with NFTs and the metaverse are endless, and trust us when we say, there is much more to come as technology evolves.