Today, two main hot topics are very frequently discussed by people when thinking of investing, the metaverse and NFTs. both areas have great business potential. The popularity of these two has increased very much in the past couple of years due to the buzz created by the media. However, this has also raised many questions in the mind of the investors.
Many people and investors are trying to understand what the whole buzz is about and what is its role? We are here to help you with your future investments in NFTs. Just stick around, relax, and enjoy reading.
What is NFT?
The full name of NFT is Non-Fungible tokens. Non-Fungible means unique and it can not be replaced with anything. Usually, NFTs are created when a digital file such as an image, video, music, or GIF is minted. In other words, you can also think of them as certificates of ownership that entirely exist on the blockchain. Moreover, these certificates are originally generated by the cryptocurrency and sold to the new owner.
Uses of NFTs in the Metaverse
The metaverse and NFTs are most of the time associated with websites and transactions over the internet are considered somewhat the same. However, both are completely different entities. The metaverse is a 3D space created through virtual reality (VR) and augmented reality (AR). while NFTs are the digital files that are minted and unique in existence. However, both share a common ground, which is Blockchain. You know now how both are different, yet there are some creative ways through which both are used simultaneously.
As you know NFTs are digital art and what can be the best way other than showing this art through the 3D space of metaverse. Through the metaverse, you get to see the art up close meaning you can observe every detail and from every angle. This is an entirely different experience from buying things from the real market as it is a more calm way of shopping. For instance, there are some museums like Cryptovoxels powered by Ethereum the blockchain are emerging for placing NFT artwork. Hence, you can say that the metaverse helps in the sale and purchase of NFTs.
With the emergence of new applications such as VRChat, communication in the VR world has started to flourish, and it has resulted in the growth of spaces where NFTs can be easily traded. Through these chats, the traders can easily provide the links of the NFTs to the interested parties. This can help in previewing the assets on the internet or in minting the new assets directly in the VR landscapes of the metaverse. Many big organizations are exploring the idea of displaying its product as NFTs in the virtual world.
The biggest example of this marketing strategy is Nike. The organization has created a Nikeland and has acquired the RTFKT studio. The studio is known for making NFTs products. Thus, the possibility of the metaverse acting as a marketplace for NFTs is not far from becoming reality.
The real estate that we are mentioning in this article is not of the physical world but the metaverse. The land in the metaverse holds great value as well. In many metaverse worlds, the land is held or sold as NFTs.
Decentraland is a virtual territory where plots of land are sold as NFTs and the land is also represented in 3D space. Moreover, this world has its cryptocurrency for buying and selling digital assets.
Now, you know there is a great difference between metaverse and NFTs. The metaverse is a 3D space, while NFTs are digital assets. Yet, there are some common ways where both can work together. This can help you understand the future trend. We believe that this article helped you understand the two concepts easily and these three ways seem possible for the future.