Today, with the rise of technology, we can use technologies we never imagined. And metaverse is one of these technologies. Now, you ask what metaverse is. Metaverse is a 3D virtual space made up of virtual and augmented reality. It is a decentralized network that combines multiple virtual worlds.
Metaverse users can collaborate, meet, play games, and socialize with other players using 3D avatars. Moreover, there are some assets in the metaverse that you can purchase. These assets may be NFTs, Cryptocurrency, and real estate. This article will highlight and discuss these digital assets and how they work. Shall we start!!!
Let’s Discuss Metaverse and Its Digital Assets:
NFT:
NFTs or Non-Fungible Tokens are cryptographic assets on the same technology as cryptocurrencies which is blockchain. NFTs have unique identification codes and metadata that make them different from others.
In other words, NFTs are unique cryptographic tokens that cannot be replicated and only exist on a blockchain. NFTs can be in the form of images. GIFs, videos, artworks, and real estate. Moreover, NFTs cannot be traded or exchanged like cryptocurrencies on equivalency.
How does it work?
Now that you know what NFTs are, you may want to know how NFTs work.
- Almost all NFTs reside on the Ethereum cryptocurrency blockchain, which is a distributed public ledger that records transactions related to cryptocurrencies.
- NFTs are unique tokens with valuable information stored in them.
- The market and demand determine the value of NFTs. Thus, you can buy and sell them as any digital asset.
- As you know, NFTs are unique. Therefore, it is easy to verify and validate their ownership.
Examples of NFT:
For many people, metaverse and NFTs are relatively new concepts. Here are some examples of NFTs that can help you get familiar with these concepts.
- A Digital Collectible
- Domain Names
- Games
- Essays
- Sneakers in fashion line
- Paintings/Art
Cryptocurrency:
Crypto or cryptocurrency is a currency that exists only on virtual or digital platforms and uses cryptography for secure transactions. Similar to the metaverse, crypto also uses a decentralized system for recording transactions and issuing new units.
Therefore, cryptocurrency does not have any centralized authority for regulation, making it a peer-to-peer transactional system. Unlike physical currency that needs to be carried around, crypto is purely a digital currency that entirely exists on an online database. Crypto is stored in digital wallets.
How does it work?
Now, we will explain how cryptocurrency work to satisfy your curiosity.
- Like NFTs, cryptocurrency also uses a distributed public ledger called a blockchain to record all transactions done by currency holders.
- The process of creating new units of cryptocurrency is called mining. Mining is a process through which a user can generate new tokens by solving a complicated mathematical problem using their computer.
- Crypto is an intangible asset that acts as a key to moving a record or unit from one person to another.
- Bitcoin has been around since 2009, but still, the concept of cryptocurrency is considered fairly new. As a result, many new cryptocurrencies and blockchain technologies are emerging.
Examples of Crypto:
- Bitcoin
- Ethereum
- Litecoin
- Ripple
- Dogecoin
Real Estate:
Metaverse real estate is digital property made up of pixels you can buy. The process of buying real estate is quite similar to real-life property buying. Moreover, there are multiple sources from where you can buy the land.
Some of these sources are The Sandbox, Decentraland, and Nikeland. Many large corporations, such as Microsoft, Google, Sneakers, Adidas, etc., are claiming their spots in the metaverse.
How does it work?
Here are some pointers to understand how Real Estate in the metaverse work.
- You will need cryptocurrency to buy land in the metaverse, then on which platform you want to purchase land. After that, log in to your metaverse platform and find the land. You can get owner details by hovering over the pixels of land. Once the purchase is confirmed, you will receive a unique piece of code on a blockchain as proof of ownership.
- Location matters the most while purchasing real estate in the metaverse.
- Primary locations have very high prices.
Example of Real Estate:
You can purchase land on these platforms in the metaverse.
- Sandbox
- Decentraland
- Cryptovoxels
- Somnium
- Star Atlas
Conclusion:
Hence, these are the digital assets of the metaverse. Which of these digital assets are you interested in buying? For us, it is crypto. Tell us your answer in the comments. We hope that you liked our article. See Ya!!!
