Role Of NFTs In The Metaverse?
The role of non-fungible tokens (NFTs) goes far beyond just being digital art and contributes a significant amount to Metaverse. However, only a few people realize the role it plays in the metaverse VR space.
Since 2021, NFTs and metaverses have experienced the biggest vitality trend due to a number of individuals and companies announcing their interest in building on these innovative fields.
It seems that NFT projects are coming up every day, and big brands are jumping on board as quickly as they can.
For instance, Sandbox Metaverse raised eyebrows in 2018 when it first incorporated metaverse into its operations. Founded on Ethereum’s blockchain, the Sandbox is a decentralized NFT-powered metaverse. That is how Sandbox made it possible for non-tech-savvy users to create, sell, use, and monetize virtual reality NFTs through their platform.
Hence, the role of NFTs in Metaverse cannot be overstated. There are many ways in which these two roles complement each other, but few people understand the interplay between them. Many people mistakenly believe that the two terms are synonymous and can be used interchangeably. But they are fundamentally different. To understand how NFTs and metaverses work, we need to comprehend their underlying differences.
Metaverse: An Overview
This is the concept of entering a digital 3-D world through a virtual reality headset. You can customize your “body” (avatar), fill your home with what you like, and visit hundreds of places in this virtual world. Basically, you can do most of the things you do every day, such as interacting with other users, working, playing games, etc. But everything is “virtual”.
Metaverses are useful because they reduce our need to travel and use physical resources. With a 3-D world, we can visualize and interact with any object without spending a lot of time or effort. A simple action allows us to switch between activities, chats, locations, and data. Rather than switching between apps and a web browser, everything is connected and accessible online…all at once!
Through the use of augmented reality (AR) and virtual reality (VR) technology, the metaverse can be defined as a shared virtual space that is hyperrealistic, immersive, and interactive. In essence, it’s a virtual world that allows people to do virtually anything while mirroring our physical world. Nonetheless, it does not aim to replace reality completely—rather, it aims to enhance the digital space we see today.
The Idea of NFTs
This is a non-fungible token – a token that is completely unique. On the blockchain, these tokens act as certificates of ownership.
The process involves creating digital files (usually an image, video, or GIF). It means that the new owner is granted a certificate of ownership and originality using cryptocurrency (usually Ethereum).
The reason NFTs are useful is that digital assets and art are notorious for being easy to steal and copy. Although NFTs cannot prevent digital assets from being stolen, they provide an objective and neutral confirmation of who owns them. NFTs could also be used as evidence against the misuse of digital goods if they are ever incorporated into copyright law.
That is why today’s convergence of technologies requires the use of NFTs. Several companies are already taking advantage of NFTs’ potential by integrating them into their metaverse projects as digital assets. How? and were they successful? Let us discuss the cases in the next segment of this article.
The role of NFTs in the metaverse
A blockchain-based metaverse must be decentralized for everyone to be well-represented and enjoy a full experience. In other words, items for sale, online objects, and even online real estate must all be ownable, sellable, and transferable within the metaverse without the control or permission of any centralized organization. The concept of NFTs conferring ownership of digital goods will facilitate seamless transactions in the metaverse as well as streamline the ownership of digital objects.
Many tech giants as well as start-ups have established this concept. As a result, the success they achieved was undeniable.
Lets us understand these four live examples,
Virtual lands
Virtual lands make up a metaverse, which is a collection of digital real estate. Blockchain metaverse projects such as Decentraland or the Sandbox sell virtual lands as NFTs.
These NFTs act as deeds and grant ownership rights to buyers. As a result, owners have greater control over their assets and enjoy a variety of economic benefits.
For instance, landowners can sell their assets on NFT marketplaces like OpenSea for profit. There are some metaverse projects that allow you to rent land as well. Sandbox landowners, for example, can earn passive income by renting the land to game developers.
Additionally, they can create games to generate revenue from players visiting their lands and interacting with them.
A chance to attend exclusive events
You can use NFTs to attend unique metaverse events such as concerts and art exhibitions.
There is a trend toward token-gated events, particularly in the Decentraland metaverse. This kind of exclusive event was hosted by the Deadfellaz collection team at its Halloween party. It was only open to holders of Deadfellaz or Steve Aoki NFTs since it was in partnership with the famous DJ Steve Aoki.
NFT avatars – Best Digital Representation
Avatars serve as digital representations of yourself in a metaverse. You don’t have to use an NFT as your avatar. In that case, it would be unique and yours.
Profile picture (PFP) NFT projects, such as RTFKT’s CloneX and Bored Ape Yacht Club’s Bored Ape, are morphing into metaverse avatar projects. Owners of these unique digital NFT arts will soon be able to create 3D avatars from their profile pictures.
NFTs and metaverses in fashion
Digital fashion is another hot topic related to NFTs. People not only flaunt their unique styles in the physical world but are also keen on doing the same in the digital world.
There have already been a number of collaborations with well-known brands in this area. The sportswear brand Adidas partnered with NFT giants BAYC and Punks Comic to create a collection of 30,000 NFTs.
Stephen Curry and Under Armour collaborated on another NFT fashion initiative. NFTs were digital replicas of Curry’s sneakers, which he wore when he broke the all-time NBA record for three-pointers. Genesis Curry Flow was the name of the collection and not to mention it was a huge hit.
Companies are keeping an eye on metaverse development today. If you share the same views and want to expand your digital horizon then contact MAGES Studio. Visit their official website.
