The metaverse concept is set to be one of the hottest technology trends in the next decade. Facebook is so invested in the concept that they went through a costly rebrand and renamed the company to Meta.
One of the things that sets the metaverse apart is the metaverse NFT ecosystem. So what exactly is the metaverse and how will NFTs transform your metaverse experience?
This article tells you everything you need to know about this exciting new virtual space.
What is the Metaverse
The metaverse is essentially a digital universe. The metaverse differs from more previous digital worlds such as World of Warcraft or Everquest because metaverses allow for a seamless transition between different experiences.
For example, you might be able to chat with your friends and play games with them, but you can also visit a virtual shopfront for real-life stores. All of this occurs in the same world without you needing to load up any additional software.
While the concept of a metaverse has existed in science fiction for a while, we’re only now developing the technology that could make this virtual world a reality. Not only does the metaverse rely on the internet, but it also uses virtual reality technology.
This means you can strap on a virtual reality headset and enter an immersive persistent world. This virtual world allows content creators to create and sell digital assets.
What are NFTs
NFTs are non-fungible tokens. Non-fungible means the token is totally unique. NFTs are hosted on the blockchain, but their uniqueness makes them distinct from tokens like Bitcoin.
If you have an NFT, you’re guaranteed to have the only token of its kind in existence. This fact is verified by blockchain technology. When you own an NFT, the blockchain system lets everyone know that you’re the legitimate owner.
As long as the blockchain still exists, no one can doubt your ownership. NFTs can be used in many different ways. For example, artists might sell their art as an NFT. The metaverse and NFT technology are likely to become interlinked.
How do NFTs relate to the Metaverse?
It’s likely metaverse NFT projects will take off. This is because NFTs can represent assets within the metaverse. This means that there is an indisputable record of who owns what in this virtual reality.
Virtual Real Estate
One big way that the metaverse may use NFTs is by creating a virtual real estate market. Just like in real life, the metaverse will have plots of land that users can buy. NFTs will allow people to have undisputed ownership of that virtual land.
In the future, this virtual land could appreciate in value, and since blockchain verifies who the owner is, people can safely invest in this virtual property. As the metaverse grows, big companies may want to establish a presence there. This means that virtual plots of land will only increase in value over time.
NFTs will also allow people to do things like renting their land for passive income. Since the metaverse is intended as a persistent world, your real estate investments may still hold their value decades from now.
In the metaverse, you’re represented by an avatar. Just like in real life, your avatar will need clothes and accessories, especially if they want to stand out from the crowd.
This is very similar to how video games allow you to buy skins and other items for your character. The problem in these games is that valuable items are vulnerable to scams and hackers.
On the other hand, in the metaverse, you’ll be able to prove ownership of every item your character owns. As long as you don’t transfer ownership of your NFTs, no one will be able to steal your items.
Another bonus to NFT for metaverse technology is that you could potentially take your items from one metaverse environment into another. A weapon or outfit that you use in a particular game could transfer seamlessly into other games. Not only is this great for gameplay, it also means the value of these items could be a lot higher than conventional gaming items.
Since scams are such a huge problem in virtual worlds, the metaverse will need to do something to combat fraud. Thankfully, NFTs make this incredibly easy. If you want to verify that an asset is what a user says it is, all you need to do is check the blockchain for verification.
This means that scams such as forgery will be incredibly difficult to pull off in the virtual world. Every item in the metaverse could have an NFT associated with it. This means every object is verifiable using a decentralized, trustless system.
Play to Earn
Finally, you’ll be able to play games in the metaverse and earn NFTs. The metaverse allows you to gain rewards for the value you add to the game. Since your NFT assets in the metaverse are universal, you’re free to sell them for a profit or transfer them to another ecosystem – the choice is yours.
This system means that it will be viable to make a full-time living inside the metaverse. The top metaverse content creators will be able to sell NFTs and make a sizeable income.
The Metaverse NFT System Is Revolutionary
While virtual worlds are certainly not a new thing, the metaverse NFT ecosystem is set to transform our online interactions. As with all new technology, it’s the early adopters who stand to profit the most. If you want to invest in metaverse real estate or virtual items, it makes sense to enter these virtual worlds as soon as you can.
If you want to read about some more topics related to technology, check out the rest of our blog posts.