The Metaverse is a blockchain-powered digital ecosystem where the users are allowed to have access to different online platforms. Most specifically, it refers to a virtual, immersive space where users can interact, buy and develop land, and meet. From communication to property ownership, you can do most modern value circulation activities on the Metaverse. Here’s what you need to know about the Metaverse and NFTs.
Talks about the Metaverse were beginning to blossom in the 2020s, but have been taken more seriously following the interest of Facebook Inc., which has since rebranded and is now known as Meta – short for the Metaverse.
The social opportunities in the Metaverse are just one side of the coin of new ideas to invest in. The feasibility of Non-Fungible Tokens (NFTs) is another aspect that would drive this new digital ecosystem. In this article, we aim to explain some of the reasons why NFTs are an integral part of the Metaverse.
How Will NFTs be Used in the Metaverse?
Non-Fungible Tokens (NFTs) allow people, especially Metaverse users, to put a price on a piece of content they share on the ecosystem. They can also take advantage of this to solidify ownership of the content or property they possess by minting important information on the blockchain; what this allows is for the owner, and only the owner, to transfer value or ownership to another individual.
That is just the tip of the iceberg. These are some of the major ways that NFTs would be used for the advancement of the Metaverse:
1) Full Ownership of Virtual Property
The future of real estate is not only in identifying potential locations for valuable land acquisition. It is now heading to the Metaverse, where you don’t have to break a sweat to own property. In the Metaverse you can own as many virtual properties as you can afford.
In the virtual real estate economy, users can buy and rent spaces, such as land or virtual apartments. It is also possible to host social events, build a virtual workplace or office for your corporation, or set-up online shops for the sales of products and services.
Decentraland is one of the cryptocurrency projects that has been making steady and conscious efforts to develop the Metaverse to its greatest potential. With the native token (MANA), you are able to acquire and trade on the different virtual properties listed on its ecosystem.
2) NFTs are Used to Drive the Open and Fair Economy for the Metaverse
Non-Fungible Tokens (NFTs) also align with the core values of blockchain technology – immutability, maximum security and freedom for everyone. In the Metaverse, users are allowed to use specific NFTs to promote an open and fair economy. For example, most NFTs have limited supply, thus creating more demand that would lead to an increase in the value of the NFT.
3) Innovative and Interoperable Gaming Models
Playing games is now something you can do not just for the fun of it, but also for the income that comes with it. In the Metaverse, you can play and make money from most of the innovative games. The amazing thing is that these games are interoperable with blockchain technology, making them accessible across all frontiers of the Metaverse.
An example of this is the Axie Infinity breeding, where you are allowed to play Axie Infinity and breed Axies to pass down desirable traits; these new Axies would later be sold. This is based on the Play-to-Earn (P2E) model that allows the players to make income from the in-game economies that reward them for playing the game. The duo of My Neighbor Alice ($ALICE) and Axie Infinity (AXS) are two of the games leading the pack in the P2E ecosystem.
Despite the simplicity of the Play-to-Earn (P2E) model, not many of the expected users are able to get a grasp of it. Besides, some of the P2E players might not have the resources to acquire some of the in-game NFT assets that could have helped them to advance in the gameplay. To simplify, to earn real money efficiently in a P2E game you need to have a good chunk of upfront cash to purchase assets which makes earning easier.
This is the reason why Play-to-Earn (P2E) Gaming Guilds were introduced. The role of these Guilds is to act as intermediaries between the players and the NFT resources. What this means is that the Gaming Guilds have the resources to acquire as many NFT assets as possible.
On acquisition, these NFT assets would be lent or rented out to players who might not have been able to afford the upfront payments. In turn, the Guilds will earn a certain percentage from the revenue generated through this process.
4) NFTs Also Play a Role in Promoting Community Building and Improvement of Social Experiences
By holding the NFT assets unique to a Metaverse project, you are signaling your support for the project. This can help in building a community-like environment, as the users would want to hold the NFTs to be able to fully participate in the community.
5) NFTs Can Be Used to Verify Identities
We are already moving away from the traditional Identity Cards (IDs) to embracing digitized forms of identity. With NFTs, you can now create Avatars that serve as a digital representation of you. These Avatars can also be customized, giving you more options to fine-tune them the way you want.
The Cryptopunk generator, for example, is already doing an awesome job in that area, by allowing you to create punk-like avatars that are usable across your social media channels.
The NFT Bored Ape Yacht Club is also another important identity-shaping NFT collection. Through the collection, you are allowed to have access to closed communities, which can only be accessed by purchasing and being involved in the collection.
6) NFTs Play a Role in Content Monetization
You don’t always earn income for the content you create and share. This is not the case with NFTs and the Metaverse. As an inclusive and creator-supporting ecosystem, the Metaverse would promote the culture of ensured monetization for the content you create.
Final Thoughts: NFTs are Needed in the Metaverse
NFTs and the Metaverse are inseparable in the sense that they both are relevant in the same ecosystem. Within the blockchain architecture, the Play-to-Earn (P2E) model, and the social interaction/transaction that comes with these concepts, we are confident that NFTs will open up more opportunities for the adoption of the Metaverse and that the Metaverse will soon be a part of everyday life.
Featured Image: Megapixl