Crypto 101: NFTs and the Metaverse Explained
NFTs and the Metaverse are two terms that have become very popular recently. But there's a lot of confusion around them. Most people don't understand what crypto natives mean when talking about NFTs and the Metaverse. That's why we wanted to bring a little clarity to the subject.
Read on to learn what NFTs are, what's the metaverse and how the two will interact.
What’s an NFT?
An NFT stands for a non-fungible token. It's a digital asset built on blockchain technology that shows you own a digital item, whether an image, video or gaming item. NFTs are so interesting because you can verify your ownership of different items on the blockchain. You can buy and sell NFTs in exchange for crypto.
What’s the Metaverse?
Facebook's announcement about Meta caught everyone off guard. Nobody expected such a swift change in the company's vision. But we do have to go back and separate Meta the company from the Metaverse in general. There are two different things.
The Metaverse as a concept is the idea of a virtual world where you can interact with other people, work and play with them. How would you enter this virtual world? Using special equipment like AR and VR glasses.
Meta, the company, is focused on becoming that virtual world, but that would be problematic for most people. After all, the social media network had many problems with data breaching and harvesting.
How do NFTs and the Metaverse interact?
If the Metaverse is going to be the virtual world we would all be living in, then NFTs would be the building blocks. In theory, you can sell anything in the virtual world as an NFT - land, in-game items, clothes.
NFTs have a big use case in the world of video games. Different game assets like characters, weapons and skins can be NFTs which you can trade with different players. The Sandbox and Decentraland, two of the biggest metaverse projects, have made millions of dollars in NFT virtual land sales.
What are NFT and Metaverse use cases?
NFTs are digital items that would enable the Metaverse. An NFT can be used to verify your virtual identity, showing your expertise.
For example, if you own a Bored Ape Yacht Club NFT and put it as your profile picture, you signal that you've skin in the game since one NFT from that collection costs 6 figures.
NFTs can also disrupt the gaming industry by enabling the next generation of blockchain gaming. No more buying in-game items that you can't sell. With NFTs, you can upgrade and trade your in-game items in exchange for crypto.
There’s also the real estate angle. You could buy virtual land in the Metaverse as an NFT. Then you can host different events in it or simply rent it out. The possibilities are literally endless.
At the same time, the Metaverse can be the place we all interact in the future. Microsoft is already developing their own work-related Metaverse, so it would be interesting to see how this goes.
Wrapping Up
The Metaverse promises to be the next big revolution. People around the world interacting in digital environments and virtual spaces, creating a special social experience for everyone would be a game-changer.
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