Two hot topics, non-fungible tokens (NFTs) and metaverses go hand in hand, gaining a lot of media buzz, headlines, and attention. But they also asked many questions. In this weekly column, we help you navigate the quirky and promising world of NFTs and the metaverse.
The most important things first
Before going into details, let’s quickly summarize the two concepts. Any digital items that start with – art, photo, video, GIF, mp3 or even a selfie – can be so switched to NFT.
You might think that NFT files are just jpeg files that can be easily copied. But what makes NFTs unique from other digital formats is that they are supported Blockchain Technology. Blockchain is a distributed ledger where all transactions are recorded. Think of it like your bank ledger, except that all your transactions are transparent and can be seen by anyone and cannot be changed or modified once they are recorded.
For starters, the metaverse can be defined simply as a shared virtual space that is hyper-realistic, immersive and interactive, thanks to the use of augmented reality (AR) and virtual reality (VR) technology. The Metaverse was introduced to reflect the real world, albeit digitally. However, it should be noted that the metaverse is not intended to replace reality, but rather what it aims to do is enhance the digital space we see today.
NFT is used in the metaverse
NFTs are mostly associated with digital arts and the metaverse with VR, so there may be some confusion as to whether there was any common ground between them in the first place. Here are the use cases for NFTs in the metaverse:
online shopping: Metaverse will let you try on virtual clothes before purchasing. This will ensure that you do not purchase unsuitable clothing or any products that have been misrepresented. Some metaverses will allow you to purchase NFTs tokenized clothing. These NFTs can then be traded for physical clothing as well.
Footwear giant Nike is already treading into the NFT-based metaverse. The company calls it ‘Nikeland’ where customers can purchase iconic shoe outfits in the metaverse.
games: Metaverse, fueled by NFTs, will take video games to another level. VR-based multiplayer games are introduced to be as real as possible. Players can earn rewards in the form of NFTs, which will help boost the gaming economy.
Real estate: When you buy virtual property in the metaverse, what you earn is the NFT of the virtual land. NFT reduces any chance of real estate fraud such as forced cancellation, sale without permission, false promises, and even delays in possession.
Loans in MetaverseGranting loans is not as easy as it seems. There are many factors involved in lending loans easily and safely. To process any loan, decentralized finance requires collateral. In the case of the metaverse, Warranty can be NFT which I bought.
Ownership in the metaverse through NFTs
Imagine if you wanted to attend a concert in Metaverse. Just like concerts in the real world, you may need a ticket or pass to get to the event. You can be issued a digital pass, but how will regulators in the metaverse make sure if you actually own the card.
NFTs in the metaverse will provide proof of ownership to both ticket holders and organizers. All interested parties can validate the card. Furthermore, NFTs can be made non-transferable if ticket resale is prohibited.
In 2019, at a crypto event in New York, Controlled Access was enabled by NFT, meaning organizers allowed entry with an NFT-based ticket, along with a VIP dinner, and even the chance to display a personalized message on a Times Square bulletin board.
NFTs serve a key concept in the metaverse ecosystem, allowing people to own virtual goods in the form of real estate, items such as cars, boats, or even accessories and paintings – all made possible through NFTs.
For example, if you own a virtual land in the metaverse (which is perfectly possible), you get the NFT as a check for the virtual property. This means that you are the rightful owner and only have exclusive access to the site in the metaverse along with allowing access to others.
Furthermore, NFTs are also responsible for creating a digital identity in the metaverse. NFT-enabled digital avatars give you an identity in the metaverse. This avatar, minted on the blockchain, can be transferred from one metaverse to another. Notably, NFTs are immutable. It is owned only by you and no one else can copy or modify your custom NFT avatar. Therefore, it is quite clear that the metaverse and NFTs are made for each other.
The last word
The Metaverse is still in the early stage of development. Together, tech companies will take full advantage of the financial capabilities and opportunities that both the NFTs and the metaverse offer. By combining the power of virtual reality, social media, and the elements of encryption, NFTs . will become An integral part of Web 3.0. It will be interesting to see what the future holds for NFT-enabled metaverses.
.
[ad_2]
