Metaverse and NFTs. I don’t think you can think of two bigger buzzwords. Although these topics have garnered huge interest over the past few years many people don’t understand the important relationship between the two.
That is why in this article I will be outlining the key benefits that NFTs bring to the metaverse. So without further ado, let’s get right in.
The top 4 use cases we will be discussing:
What is the metaverse and NFTs?
The metaverse – this is an extremely broad term used to describe virtual reality. It can be anything from augmented reality to playing call of duty with your friends. When it comes to virtual reality this is usually defined as a completely open digital environment that continues to exist with or without you. On the other hand, augmented reality combines both the physical and the virtual world.
NFTs – this stands for non-fungible tokens. Essentially, it is a record on the blockchain which cannot be falsified or duplicated. Think of them as digital receipts which are recorded on a public ledger. Every transaction on the ledger is open to the public making it completely transparent. Each NFT is a unique asset with specific metadata.
Use cases of NFTs in the metaverse
Open and permissionless marketplace – Metaverses provide a fair economy open to anyone. Thanks to the underlying technology of NFTs each item in this economy will be unique and transparent. Vendors will be able to easily provide links to their products while users will be able to preview items without the hassle of traveling to a physical store. Not to mention, the authenticity of the products will be able to be verified on the blockchain. Gone are the days of fake products.
Art galleries – This is perhaps the most successful use case at the moment. Art galleries are now allowing NFTs to be viewed in a completely virtual world. This new format certainly provides a much more relaxed experience. No longer will you have to queue and you can get up close with every minute detail. But you want to know the cool thing. They cannot be faked. Each NFT displayed can be verified on the blockchain.
Virtual real estate – As all aspects of our lives transition to the metaverse so will real estate. Virtual real estate will have several use cases. This will include renting to generate passive income, digital businesses like marketplaces also the ability to host online events. NFTs will ultimately facilitate this by acting as proof of ownership.
Expression of identity – want to have an ape avatar or a fancy watch? It’s all possible in the metaverse. These avatars will be an expression of ourselves. Holding certain NFTs can show you support a particular community, this develops a sense of belonging as you share experiences with like-minded people. Maybe people who hold a certain item get granted exclusive perks or access to events. Not only that but they’re status symbols. People will be envious of rare items. The inherent scarcity of NFTs supports this and as previously mentioned it cannot be faked.
As the metaverse continues to impact our lives more and more it is essential to pay attention. The opportunities are truly limitless. We are no longer constrained by the physical world. From virtual art galleries to a whole open economy, it’s truly impressive and this is all supported by NFTs. The immutable, transparent and scarce nature makes them a perfect fit. Ultimately, this technology will only continue to grow and get better.
Want to learn about Fractional NFTs? Check out my article Can you Buy a Portion of an NFT?