There is no need to question that technology is undergoing a huge number of changes that will affect us in different ways. Some changes will be good, which will benefit us, but some of the changes will be very strange, which will be very difficult to understand, but we have to understand all those things so that we can understand the effects of those technologies, and today in this article we will discuss some of those technologies, and that are Metaverse and NFTs. Many people think of NFTs as just digital artwork, which people buy these days by paying more money because they have only seen people investing in NFTs on platforms like OpenSea, but very few people know what NFT actually is, and what is its role in the metaverse, so today we are going to discuss how NFTs would play an important role in the metaverse?
What is the Metaverse?
If I explain to you in simple language, the metaverse is a 3D virtual world where you can do everything that you do or want to do in the real world, with the help of your avatars, by sitting at your home. Like traveling to another country, going on voyages, playing interesting games, and much more.
The metaverse has become one of the hottest commodities of the 21st century and many top companies are investing heavily in it to create their own virtual environment which they will offer to their users. Like Facebook rebranded as Meta, Nike announced a purchase of a company that makes NFT Sneakers called RTFKT, Gucci ran a limited promotion this summer where they sold metaverse versions of popular bags and other limited edition items on Roblox, Microsoft will pay $68.7 billion to acquire Activision Blizzard, a new video game company, etc.
The meaning of the metaverse is different for different people, if you are an investor then the metaverse is a way for you to earn a profit, if you are a student then it is a networking medium for you and if you like to travel then this can become a good tourist place for you, that’s why the presence of the metaverse Is the indication of the revolution that will be bringing in the future.
What Is NFT?
NFT means Non-fungible tokens, they are built on blockchain technology and this is the way to prove your digital ownership.
First of all, let us understand what is the meaning of fungible? It simply means “Replaceable”, so non-fungible means non-replaceable, it means those tokens which cannot be replaced are called NFTs like there are many bats in this world but the bat through which Dhoni hit six in the final of the world cup is the only one which cannot be replaced with any other bat, that’s why that bat will be called an NFT.
NFTs are increasingly playing a vital role in decentralized finance (DeFi), assisting with the administration of borrowing and lending. The
The previous year 2021 will be remembered as the year when Nonfungible tokens become mainstream, despite being conceived in 2014.
The global NFT market generated over $23 billion in trading volume in the year 2021. That growth is a 230X increase from just $100 million in the year 2020, according to the crypto-based analysis platform DappRadar.
Nonfungible tokens become so popular that Collins Dictionary selected the word NFT as their 2021 word of the year. NFT or ‘Non-Fungible Token’, is defined in the Collins dictionary as a digital certificate of ownership of a unique asset such as an art or a collectible that can be bought by users.
Twitter has blazoned that it’ll now allow the use of NFTs as profile filmland. Its best premium service, called Twitter Blue, connects to different accounts of Twitter to popular decentralized wallets like Metamask, CoinBase Wallet, and Ledger, allowing them to upload their digital artwork directly.
Now, what else do you need to believe that the future of NFT and Metaverse is bright, So you should also start knowing about them and start taking benefit from them as much as you can?
The Connection between the metaverse and Nonfungible tokens
Nonfungible tokens are only NFTs that represent someone’s ownership of digital assets i.e. digital art, signature, drawing, painting, posts, etc. It shows that NFTs in the metaverse can represent ownership for anything i.e. virtual lands, gaming assets, shops, virtual avatars, etc. However, the main reason NFTs are so much popular in the metaverse is their virality in blockchain games.
Metaverse provides users access to their virtual avatars through NFTs. Each and every avatar is tokenized to prove ownership for their character.
Events held in the Metaverse, i.e. music concerts, and live events, use NFT ticketing technology to distribute tickets to the desired audiences of the events.
Trading in-game collectibles and accessories like cosmetics, armors, and tanks are bought and sold using the Nonfungible tokens or NFT system to give ownership and transfer it for trading in the secondary market.
Metaverse allows different businesses and users to port real-world assets into the decentralized Metaverse digital space. One of the main reasons for integrating more digital assets on the Metaverse is play-to-earn games. Such games drive engagement among the users who play games and empower them by providing benefits like in-game lending and trade activities.
With NFTs, users 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 virtual properties.
This helps to promote a transparent and fair economy as anyone from the real world can join for play-to-earn games and earn yield even when they are just starting with zero money in hand.
Metaverse is here to change the existing social experiences, and for that NFTs play a very crucial role. Holding unique NFT avatars, users can show their identity among various avatars available in the virtual space. Different brands can use their NFT avatars to interact with their targeted audiences, discuss their projects with like-minded people, and thus solve many problems. This will also help them to grow their business without doing much physical work, everything will be controllable with their mind.
Owing to the NFT avatars, social media users can meet the avatar of their followers or social media friends or connections rather than having a text-based chat or video call, this will also increase their trust towards your followers. Since NFTs have non-fungible properties, each NFT avatar is unique and has its real-world identity, with that users have total freedom to design and curate their personalized virtual avatars on the Metaverse.
I hope that now you have understood that what is the connection between NFTs and Metaverse and how both are dependent on each other.
Blockchain technology is a years-old concept and NFTs blew up in 2021, but according to the experts, you’ll hear way more about them the previous year.
This brings us to NFTs or non-fungible tokens.
Think about the NFT as a unit of cryptocurrency that is unique to its owner, like virtual collectible cards. People are spending money on NFTs in several forms, but most commonly the idea is to have an immutable receipt of ownership over a piece of digital artwork. For some, the goal isn’t simply to patronize the artist and appreciate the art. Rather, the hope is that, over time, the NFT will appreciate and can be sold again at a higher price.
Since NFTs don’t exist in the actual world, anyone can simply right-click and save that piece of NFT artwork without spending millions of dollars to stake a claim in it. The NFT world is also fertile ground for scam artists, who can sell stolen art, steal money, and do all sorts of other wild things, but you would know that this is a nonfungible token, which cannot be replaceable.
We saw today how NFT plays a very important role in the metaverse, in today’s time we can do a lot with the help of NFT in the metaverse like, we can earn money while playing games in the metaverse, we can change our dressing sense in the metaverse, you can also buy virtual lands in the metaverse with the help of NFT and then keep it on rent or sell it to others who need that space in the metaverse, you can do all this through your avatars which will show your identity. It is just like an identity card of any student which shows their identity to an unknown person, who can believe that this is that particular student after seeing their identity card.
The Metaverse and Nonfungible tokens are currently in their early stages, and their horizon is constantly expanding with big corporations investing in this technology and launching various existing use cases. We frequently hear about various unique Metaverse projects being launched with different attributes. It shows the next version of the Metaverse, which must be much more advanced than the Metaverse we are exploring today.
Frequently Asked Questions
The main connection between the metaverse and NFTs is related to virtual assets and how they are providing values. The metaverse will allow people to show their digital forms of arts and properties, and NFTs will allow them to put a price on those contents with proof of ownership. It means NFTs are just like money of our actual world, how we buy things in the real world by providing money similarly, in the metaverse we can buy things through NFT.
Ans. While NFT games are still in their early stages of development. NFTs in the metaverse can offer users new ways to play, invest, interact and earn from it all. By incorporating the immersive environments of virtual reality (VR), the addictive playability of video games, the interactivity of social media, and the value propositions of cryptocurrency, metaverse games are poised to become a central element in the n generation of the internet.
Investing in NFTs is a very easy process, you just have to visit OpenSea (this is a platform where people can buy and sell NFTs) and choose your favorite NFT then simply press on the “buy” button and done. During your transaction always remember there is something called gas fees (just like taxes) and you also have to pay that, and that fees will depend upon your chosen crypto token for purchasing Nonfungible tokens.
Yes definitely, and for all the same reasons cryptocurrencies and blockchain technology will gradually select our digital lives. They are more efficient and effective in many different roles than their traditional forerunner. Just think about gaming NFTs, If users can have more value, more utility, more status, and more enjoyment from an in-game NFT, why wouldn’t the NFT ultimately take over.
There was a time when it was very difficult to move communications between online services. Nowadays, standardized protocols fix that, we have universal SMTP email. The same evolution will play out with NFTs and metaverses also. It will get much easier to create, use, trade, and transfer Nonfungible tokens.
Experts are viewing the metaverse as a major economic force that has the potential, to change the way we live, the way we work, in the years to come with NFTs as a key-value driver.
Apart from Facebook, there are several other tech giants such as Microsoft, who have also announced their plans of exploring the metaverse. VISA entered the metaverse after their first purchased NFT for $150,000. Popular brands such as Gucci are also into the metaverse. The consumer brand in June collaborated with Roblox, an online gaming platform, to sell a collection of digital-only accessories in the form of NFTs. Coca-Cola has sold digital tokens pitched as a stepping stone to the metaverse.