Most people think of NFTs as only being a digital image or a collectible that can be sold for high prices and while that is somewhat true there is more to NFTs than just something you collect. While the current trend is collecting Images, there are so many more new opportunities for investors, enterprises, and enthusiasts which could change the game for NFTs in the long term.
Blockchain, NFT, and the Metaverse
Blockchain is a core technological advancement that has become increasingly popular in a short duration of time. It served as the foundation of Bitcoin which allowed the problem of double-spending to be resolved. Subsequently, it also became the basis of creating non-fungible tokens (NFTs) which introduced the traits interoperability and scarcity. With more people talking about NFT Metaverse projects and the Metaverse itself calls for more investigation on its role in the blockchain.
What are NFTs and the Metaverse?
Non-fungible Tokens, more popularly known as NFTs, are digital assets that are unique, indivisible, and immutable. They are made to represent the ownership of digital and physical assets on the blockchain ranging from digital artwork to the gaming industry.
Essentially a Metaverse is the digital “environment” that runs on a blockchain where technology, like VR and AR, can be used to serve as a visual component. Because of the decentralized nature of the blockchain, it’s a great prospect for unlimited business opportunities and social interactions.
Is NFT a part of the Metaverse?
NFTs and the Metaverse could be considered almost synonymous with each other as some people are pointing towards the Metaverse blending with NFTs, while others assume NFTs are just another component in the broader Metaverse.
Will NFTs help build the Metaverse?
The Metaverse as a whole is a massive concept, with NFTs possibly serving as the key concept in the broader ecosystem. Some NFT Metaverse projects could even drive the possibilities of using NFTs as deeds to virtual properties or gain exclusive access to specific locations in the Metaverse to anyone who buys an NFT.
How NFTs will affect the Metaverse.
Road to a Fair and Transparent Economy
Leveraging NFTs could be highly beneficial to the Metaverse. The greatest example of this can be seen in play-to-earn games by using NFTs to drive engagement in the Metaverse while offering chances to empower a player. There have been “Guilds” who serve as intermediaries that purchase in-game NFT resources like assets or land only to lend out those assets and land to other players who can use them in the virtual worlds for earning yields. In return, the Guilds would take a small amount of the profits.
New Generation of Community, Social, and Identity Experiences
NFT Metaverse projects could also play a significant role in how users interact with others as it opens new channels by allowing users to support an NFT project they like or express their opinions about the real or virtual world. A good example of this is NFT avatars that have become a popular thing in the Metaverse since it allows users to have a digital representation of themselves, allowing them exclusive access into places in the Metaverse.
New Trends for Real Estate
Virtual worlds mean a lot of virtual space and real estate that you could buy into. Using NFTs to gain ownership of these virtual spaces in the Metaverse allows you to easily prove your ownership of the assets while developing virtual real estate.
A popular NFT Metaverse project is the act of buying then selling your land for profits or renting out your virtual land for passive income.