How do NFTs affect the metaverse?
The acronym NFT, whose acronym in English means “Non-fungible Token”, gained great popularity on the network during 2021. It is a type of digital token that uses blockchain technology to validate its authenticity and value. NFTs are unique and although they can be transferred between users, they are indivisible and are usually part of a collection. But
how do NFTs affect the metaverse ?
Despite being considered digital ownership certificates, some NFTs have real-world utilities . For example, there are collections that allow whoever buys them to gain access to special events and exclusive benefits. So apart from certifying that you own something unique, NFTs can act as keys that open the way to new possibilities.
One of these possibilities resides in the digital microuniverses that we have seen in science fiction literary and audiovisual installments. An example would be Spielberg’s film, “Ready player one” which is based on the book of the same name by Ernest Cline. The story narrates a dystopia where humanity lives, works and entertains in a virtual universe using avatars.
Although our current technology limits the possibility of creating a Metaverse Development as complex and realistic as the one in the movie. Tech giants are targeting the development of similar metaverses, even Mark Zuckerberg, creator of Facebook, renamed it Meta. But what really is the metaverse? Below we explain everything you need to know about this new technological trend.
How NFTs Affect the Metaverse — NFTs Affect the Metaverse
To understand how NFTs affect the metaverse, you need to understand what it is. We can start by saying that a metaverse is a virtual space where people can interact with each other. Facebook could essentially be considered a metaverse, since it allows social interaction between people from all over the world. However, on said platform there is still no possibility of creating avatars or trading digital goods.
There are other platforms that allow the social and economic interaction of people in a virtual space through avatars. Users of RPG games like Minecraft and Fortnite are more familiar with the mechanics that the metaverse can offer. Since it is not necessary to share the same physical space to be able to create, learn, play, buy or work with friends.
In short, the metaverse would be a virtual environment where you can live through avatars and interact with other people. A kind of metaphor for reality without the physical limitations to which we are tied in our world. A new immersive digital world where we can create our character and live countless adventures through it.
How do NFTs affect the metaverse?
Although the metaverse is still a reality in the future, NFT technology brings us closer to the possibilities it could offer. Imagine that you acquire an NFT associated with a clothing brand that you can then use to dress your avatar. Or that you get an NFT by working in the metaverse that you can then sell for real money.
NFTs will not only play a key role in defining and personalizing the identity of our avatars. But they will also be essential when certifying the validity of everything we obtain and wish to monetize. This relationship between the Metaverse Development Company and the real world would not be possible without the blockchain technology used by NFTs.
However, due to its collectible nature, the value of NFTs would be closely tied to the interest it can generate. No one would pay large sums of money for a good that they can easily get themselves. This creates a speculative environment that could increase investment risks and cause distrust in some users.
How NFTs work in the metaverse
By purchasing an NFT, you acquire the certificate of ownership of a digital asset whose value will be determined by its rarity. Within the metaverse, your avatar should be able to keep, use, or sell their belongings anytime they want. For this, it is necessary that the platforms of the metaverse are interoperable and do not generate cracks.
Interoperability is a fundamental concept within the metaverse, since it not only ensures the fluidity of the experience. But it will also ensure that our belongings do not lose value and that we can trade no matter where we are. The blockchain technology used by NFTs can be the cornerstone of interoperability in the metaverse.
In addition, NFTs assure the user that what they buy will be completely their property. Currently, companies often sell licenses that grant permission to use applications or programs. But with NFTs it’s not a license you get, but full ownership of the digital good you buy.
In this way, the door is opened to the possibility of creating economies that generate a social impact. Where the consumer is capable of producing economic benefits and generating new digital business models. Obtaining resources and taking advantage of them in both worlds (real and metaverse) is one of the goals to be achieved by the developers.
Could it be a sustainable investment?
The metaverse is currently in a very early stage of development. Despite the fact that technological giants like Facebook point to it, it is still just a concept. However, it is possible to invest in the materialization of this idea that promises to be the future of virtual reality.
As in all investments, there is a risk that we must consider before becoming a benefactor of the project. First of all, it is important to know the volatility in the prices of the crypto and NFT Metaverse . By studying market fluctuations, we will be able to better understand how and when it is best to invest without taking so much risk.