Crypto has been around for a good while now; however, it has been increasing in popularity lately, with big companies making a move to try to get ahead of it first. An example of this would be Facebook’s rebranding to Meta. While this isn’t exactly new information, it does show how quickly Metaverse, NFTs, and DeFi are taking over the world by storm.
Some people are on the fence about it all, but you don’t need to be a crypto evangelist to know that it has some benefits in the real world. In this article, we will be taking a look at the 3 most prominent crypto terms and how they’re important to the blockchain.
The Metaverse is intended to be a fully immersive Virtual Reality experience with users having virtual avatars that will allow them to traverse through a digital environment. It could expand users’ socializing beyond just sharing images or documents. Users would be able to look at real estate virtually then be able to buy virtual homes through tokens; the Metaverse has it all. A token is considered the Metaverse’s equivalent of currency which can be used to trade for collectibles, houses, or other things on a virtual marketplace.
Non-Fungible Tokens (NFT)
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. An example of this could be Jack Dorsey’s first tweet that sold for $2.9 million. NFTs are made as a way to trade these items, which in turn could help them increase in value all while retaining the original ownership.
With gaming’s new play-to-earn aspect NFTs have become a valuable resource that allows users to generate money while playing their favorite games since these resources are allowed to be traded amongst players.
Metaverse tokens are not free, meaning like any other thing, you first have to buy them. This can be done through multiple different avenues, from buying them with real (fiat) money and bank intermediaries to trading one cryptocurrency for another. But using fiat currencies kind of defeats the whole point of a decentralized trading mechanism which is where decentralized financing comes into play. With DeFi networks, you can easily buy or sell your Metaverse tokens using smart contracts, P2P transactions, trading, and more.