NFT and Metaverse- What is the Hype About?
Blogs, Social Media, Youtube, wherever you go, there’s always someone talking about NFT and Metaverse and how they will revolutionize the way we experience the digital world. Some analyze it from its financial aspect; others talk about the convenience it has to offer…the speculations are endless.
But the question is, is it really what we are told? And if yes, is it worth all the hype? And most importantly, could you capitalize on it? This, and much more, we will be discussing in the following article.
So without boring you with the mumbo jumbos, let’s jump straight in and explain it right from scratch!
Table of Contents
So what are NFT and Metaverse?
Before we dive into the deep complexities of the topic, it’s essential to clear up some concepts about what is NFT and Metaverse in general. If you already know, you can skip the part. It’s for newbies!
NFT is a short abbreviation for non-fungible tokens. What are non-fungible tokens? Anything that is unique and indivisible and has an immutable status. It is owned by an individual who can transfer the ownership to another person through blockchain. The transfer trail is used as ownership proof. An NFT can be anything, from original art and music to a Metaverse avatar. In case you need to learn this visually, a quick search in Google shows you plenty of explainer animations about NTF.
In the most straightforward words, Metaverse is a place where your digital self can reside and be anything you want. Your digital personality in the Metaverse is known as your avatar. This avatar can interact with other avatars in the Metaverse and perform activities that could be or could not be possible in reality. It is essential to know that the Metaverse is expanding with every passing day and becoming more interactive. So much so that it might become an alternate reality in the future.
How are Metaverse and NFTs connected?
Now that you know what the NFTs and Metaverse are, some of the most critical questions that arise consequently are:
- How are NFT and Metaverse connected?
- And if yes, what is all the hype about?
Well, here’s the thing. NFT is just a part of the vast virtual world of the Metaverse. The Metaverse allows you to present your unique creations to other individuals, get paid in crypto, and then transfer your assets to the real world and capitalize on them.
Already curious? Let’s tell you what’s all this hype about!
Why are NFT and Metaverse so hyped?
Well, because they provide previously unimaginable opportunities. Following are some of the significant factors that make NFTs and Metaverse so important for the current users:
1. Promotion of a transparent economy
NFTs in the Metaverse help create a fair and open economy where everyone can thrive, gather up assets, and leverage them in the real world. One of the best examples to explain this point is play-to-earn games.
Such a gaming model is simple. It allows the players to earn something from it while promoting maximum engagement. Moreover, provide them complete ownership control of all the digital assets, a.k.a NFTs, they gain throughout their playing experience.
If the players decide to sell these assets, the gaming guilds help them. What is a gaming guild? It’s a community that pairs people who want to make money from their assets or NFTs.
Being intermediaries, gaming guilds buy the assets from one player and give them to new players to give them a head start without any initial capital, and then take a percentage of the total earnings of those players when they start making money.
Such activities help players make a profitable gaming career out of the Metaverse and pave the path for establishing an open economy where everyone can thrive. Guess what? It could turn the Metaverse into a potential NFT marketplace for future users.
2. Paving a path for new communities and social experiences
You might be thinking, how could that be even possible? The word NFT and community don’t seem to intersect at any point. Well, slow down, tiger! There’s a lot that you don’t know yet.
NFTs could help make new communities in the Metaverse by bringing together people interested in buying the same assets to show support for a particular cause or project. Thus, it will provide grounds for like-minded people to interact, share, and support each other through different experiences or collaborate on a specific project.
Moreover, people could also use their NFT avatars as access tokens for different events and locations in the real and virtual world. And thus, their virtual identities will be more likely to turn into their real identities, with complete ownership control.
3. Promotion of new concepts of real estate
Did you ever think in your wildest dreams that you would be buying and selling real estate…in a virtual world one day? Well, now you can, and you must, at some point. Anyways, if it comes to that, you could easily buy virtual spaces in the Metaverse through NFTs and use that virtual real estate for buying, selling, and renting.
The most famous example of it in the current times is that of the Decentraland. It was the first virtual real estate to collaborate with the Shoe industry giant Adidas to host a virtual fashion exhibition. All the fashion designs showcased in the auction were NFT assets that interested people could own through blockchain transactions.
There’s no hesitation in claiming that there’s a probability of much bigger events in the digital space you could leverage on. Or else, you could just sell your virtual land as you do in the real world for solid income. Simple enough, eh?
Have an NFT project?
You should know the first step is to explain it well to your target market. It is probably no brainer that the better you promote it, the better response you will receive from the public. In my opinion, an NFT explainer video is your best friend in this scenario. So don’t be stingy and hire a very professional studio to do it for you. Trust me, it will go a long long way!
NFT and Metaverse are inseparably tied to each other, and one is entirely dependent on the other. Where Metaverse provides a fruitful platform for NFT owners, the exchange of NFTs is likely to control at least more than half of the economic activity on Metaverse in the future.
It’s just a matter of a few years that we’ll be seeing the Metaverse dominating the digital space with the convenience it will bring to the world. This leads us to the conclusion that for whatever reason the hype is, it’s pretty much genuine.
On this note, let’s end this informative article. I hope my two cents on the topic have been helpful to give you some fundamental insights on the matter. See you with another one!