16 September 2022
NFTs (non fungible-tokens) marked the beginning of the new concept called the metaverse. With the advent of Meta, Facebook declared a gradual transition to an augmented reality experience using NFTs. It will become the foundation of next-generation social media.
Moreover, NFT and the metaverse also include game mechanics (similar to blockchain games), providing more value to the new type of social network. Therefore, NFT is a crucial brick when building the metaverse.
The metaverse also involves such vital processes as communication and payments. Users can interact with each other using digital copies of themselves or a generated character. All of this allows people to spend as much time as they want. The metaverse also promises good prospects for VR and AR solution providers since the new hype concept directly affects the sales of virtual reality headsets and glasses.
Users can live their virtual lives, buying digital items, joining groups with shared interests and playing video games. Let’s learn more about NFT and metaverses.
What Exactly Is The Metaverse?
A metaverse is a vast blockchain-based universe. VR and AR technologies provide unlimited social engagement and a decentralised user experience. Such platforms are characterised by their accessibility, extensibility, and adaptability, combining cutting-edge technologies and advanced communication.
The three-dimensional digital universe covers a wide variety of elements, including:
- Communication.
- Financial component.
- Virtual ecosystem.
- Avatars.
- Non-fungible tokens and more.
The main goal is to give users complete freedom of action. For example, anyone can create, buy, or explore NFTs to buy various items and virtual properties, create NFT-based games, etc. It allows you to trade real and virtual assets in many ways within the next-generation social network.
What Is The Function Of NFT In The Metaverse?
We have learned that metaverse NFTs and the classic ones are nearly the same. But what is the relationship between NFT and metaverse? This technology is more than a common good since anyone can create and trade tokens in the 3D universe.
Initially, non-fungible tokens serve as proof of ownership for real and virtual property. For instance, pictures, videos, audio files, fine art, and real estate can be turned into digital assets.
Plus, the NFT concept involves reasonable prices for minting (creating) an NFT. It allows individuals to produce large amounts of digital goods and commercialise them.
The non-fungible tokens provide immense opportunities for people. But why are people willing to invest massive amounts of money in digital assets? Learn more about the NFT concept here.
How Will NFTs Impact The Metaverse?
Crypto experts believe that non-fungible tokens can become a driving force of the metaverse, resulting in an extensive virtual digital world. But what is the NFT’s effect on the metaverse experience? Let’s consider this question in more detail.
Building an Open Financial Ecosystem
As we mentioned before, gaming mechanics and constant interaction are vital elements of the metaverse. Different three-dimensional digital platforms implemented a play-to-earn (P2E) model powered by the blockchain. In this case, players can get rewards for their achievements and activity in such a game. It allows earning an internal cryptocurrency for playing alone or with friends. These digital assets can be exchanged for real money, NFTs or other virtual property.
The metaverse users unite in groups called guilds. They act as intermediaries between the digital platform and players, buying NFTs and reselling them to other users. This speculation brings P2E guilds a profit in the form of spread (price gap). Therefore, these groups fulfil a vital mission of NFT in metaverses, allowing players with a small starting capital to join the game.
Creating a Community to Share Ideas and Experiences
Non-fungible tokens are also helpful for bringing the community together and supporting each member’s identity. For instance, the owner of a certain NFT can spread their worldview and support a particular metaverse project.
Like-minded people can also unite in communities to create unique content and share their views. The avatar is an extension of each player’s personality, so they can control their virtual copy and get a unique experience in the next-gen digital world.
An Advanced Property Ownership
Moreover, the metaverse is distinguished by dividing the entire virtual world into different lands and spaces. Anyone can buy them and receive NFTs as proof of ownership. Players can do whatever they want with their property:
- Sell for profit.
- Rent out to other players.
- Build virtual houses and shops.
- Organise parties and other activities.
One of the most well-known real estate metaverse examples is Decentraland. In 2021-2022, it was invaded by major brands, such as Samsung, Atari, Playboy, and Adidas. This virtual space also hosted Sotheby’s auction in their digital gallery and the Metaverse Fashion Week with dozens of fashion brands appearing (D&G, Paco Rabanne, Tommy Hilfiger, etc.).
Plus, the metaverse is an excellent place for musicians to perform. Deadmau5, Grimes, Paris Hilton, and many other artists held concerts on the digital stage.
The Prospects of The Metaverse
Metaverses are just beginning their journey, but they are already attracting the attention of the whole world. This concept offers excellent opportunities for NFT use and interaction between users. Therefore, we have got NFTs and metaverse explained.
Also, metaverses are often mentioned in the context of Web 3.0, a new era when the network processes data at the human level. These spaces are fully in line with this definition, bringing together virtual reality, games, social networks and digital assets. It allows businesses to expand their online presence, and other users can manage the virtual property and create unique content.
Further, people can use non-fungible tokens to develop new applications in the metaverse, but not everyone has such an experience. At Rocketech, we know how to create profitable software for different industries. Our dedicated team will do their best to develop a digital solution that fits your needs and requirements. And if you want to expand your customer base and raise profits, contact us now!