To a great extent, technology is redefining the way we work, the way we conduct business, the way we share information, and the way we interact. Since the rebranding of Facebook to Meta in 2021, the word Metaverse has become more popular than ever.
The Metaverse is a virtual world powered by technology that aims to provide new ways to connect and share experiences. In theory, the metaverse promises a lot. From being able to sell virtually to experiencing events instead of just watching them from your phone.
The possibilities have been described as endless, but, there is a need for collaboration if the promises of the Metaverse will move from theory to reality. This is where NFTs come in.
The Metaverse promises a better social experience and connection for people, NFTs are important to achieving this goal and making it worthwhile. In this article, you will learn about NFTs and the role they play in the Metaverse.
What Are NFTs?
The term NFT is an acronym for Non-fungible tokens. Non-fungible implies that an item cannot be exchanged for another item even if they are like terms. For instance, you can swap Bitcoin for Ether. This is possible because cryptocurrencies are fungible. But NFTs are not
Simply put, NFTs are digital representations of assets that are unique and cannot be exchanged for one another. Initially, NFTs were only used to represent digital arts. Now, its use case has risen from digital arts to almost everything online like music, books, etc.
Features of NFTs
Built on Blockchain Technology
NFTs are built on Blockchain Technology. This is what makes it easy to ascertain the owner of a piece of Art without hassle and within a very short time frame like in seconds.
They Are Unique
Just as there are no two humans on Earth with the same fingerprints on Earth, there are no two NFTs that are the same. You can think of this as the human feature that we share with NFT.
Value is Determined by The Forces of Demand And Supply
Aside from being unique, the value of each NFT also differs and is controlled by the forces of demand and supply. No two NFTs can be sold at this price.
One of the reasons for this is that the value each creator places on his or her NFT differs and the amount of traffic for each NFT differs. Traffic here implies the number of persons who are willing and capable of buying the NFT. NFT A may have a higher traffic than NFT B and that influences the price greatly.
NFTs are transferable. You can sell the NFT you minted. You can as well buy NFTs minted or created by another person. However, the owner retains the copyright of the NFT except otherwise stated by the agreement between the seller and the buyer.
How do NFTs Work?
NFTs can be created and minted (published) by anyone. Each NFT contains a code that makes it unique and different from other NFTs. NFTs are minted and bought from NFT marketplaces. There are different types of NFT marketplaces.
NFT marketplace is different in terms of the degree to which it gives you freedom to mint and buy NFTs. For instance, there are no restrictions on open marketplaces. You can freely buy or mint NFTs there but in closed marketplaces, the story is different. Not only are the closed marketplaces the only ones in charge of minting NFTs, but membership is by application.
Benefits of NFTs
It Simplifies The Owner Verification Process
In our world today, it’s often difficult to determine the actual owner or creator of online content. Anyone can write content and claim ownership.
NFTs are built on Blockchain Technology. Blockchain Technology has a way of recording information transparently. With this, it is easier to ascertain the original creator of an Art or owner of an asset.
It Makes the Tokenization of Real World Assets Easy
Tokenization of real world assets not only makes investing available to more people, it also makes the whole investment process seamless and to a large extent free from fraud.
The application of NFTs has gone beyond digital arts to real world assets. With tokenization, a more efficient process is more guaranteed.
Protects Ceators by Preventing Unlawful Duplications of Creators’ Works
NFTS are transferable but the owner retains the copyright of the NFT. In addition, the NFT cannot be duplicated. The buyer cannot make copies of the art and sell them as his or her own which is what is obtainable in our world today.
What Exactly is The Metaverse?
The Metaverse, is an embodied internet when you are in the experience, and not just looking at it. To watch Beyonce’s tour live, you have to purchase tickets and fly to the venue. If this is not feasible for you, the next option is to watch from your phone but the experiences differ.
In the Metaverse, you won’t just watch from your phone, rather you will be at the event virtually and experience the concert just like you would have if you physically attended it. The Metaverse gives you the power and platform to do this. That is what the Metaverse is all about.
How Does The Metaverse Work?
The Metaverse is designed to work with and depend on technologies such as virtual reality, augmented reality, Blockchain Technology, the Internet of things, and 3D modeling. The major aim is to allow you to experience the real world by being in it.
For instance, not all football fans were financially capable of flying themselves to Qatar for the 2022 World Cup Championship. Fans in this category watched and followed the competition from their phones.
That’s the stage where we are in the internet revolution, but the Metaverse promises to be part of the action just by being connected to the internet and having a virtual reality headset.
Instead of watching from your phones, you are there live with your headset. Even though you are not present there, you have and share the same feelings and experiences as someone who is present.
Why The Metaverse?
The Metaverse is particularly important because of its removal of geography and location as a barrier to education, entertainment, work, and the like.
Even though more people are using video conferencing apps to attend meetings, collaborate, and work together, people still prefer the offline experience.
This is because they believe it’s more fulfilling even though it’s expensive. The truth is that the experiences are not the same. Metaverse promises to bridge this gap. With it, you will be able to share and feel the same way you would have felt if you attended the event physically.
Not only will it help you to save money while achieving your goals, it will also reduce your carbon footprint. This is because the amount of energy you consume will be reduced.
Metaverse And NFTs: The Role of NFTs in The Metaverse
A Reward System For Metaverse Games
Metaverse games like the Sandbox depend on NFTs to reward its players.
Makes Trading of Digital Assets Possible in The Metaverse
You can perform transactions in the Metaverse, that is, you can buy and sell in the Metaverse. For trading to effectively take place, there has to be a form of currency that will serve as the exchange of value. NFTs serve as the currency for the exchange of collectibles in the Metaverse.
To Assure Safety
For you to work, learn, play, shop create, and engage appropriately without hassle of any sort in the Metaverse, the space has to be safe. There are three levels to this which are; safety from adulterated or fake items/products, safety from piracy or unlawful duplications of your work, and safety from theft.
Safety From Adulterated or fake items/products
NFTs are unique. They cause some sort of digital scarcity which reduces the tendency of purchasing fake or substandard products.
Safety From Theft
With NFTs, it is easier to know the creator or owner of a piece of work within minutes. It protects the creators from thieves and ensures that they get credit for the work they create.
For example, In 2014, Art + Com sued Google for Copyright infringement. According to them, Google Earth and other related software products made in 2001 infringed on the patent rights of their product Terravision which was invented in 1993. They lost the case to Google. If the knowledge of NFTs was available to them in the 1990’s they could have easily detected when the code was stolen.
Safety From Piracy or Unlawful Duplications
NFTs can be transferred but cannot be duplicated. Trying to duplicate an NFT will leave you with two distinct NFTs with unique codes.
Making Event Attendance in The Metaverse Possible
There are usually tickets for live shows and performances of Artists. NFTs can be used as a form of ticket. No NFTS are the same so it makes it easier for artists, brands, etc to give tickets to their fans and well-wishers. It is more reliable for the fans and well-wishers.
Since transactions and the history are traceable, it will be easier to determine the particular fan an NFT was transferred to, unlike in the physical world where all tickets are the same and loss of the ticket means automatic loss of access to the event, except if you decide to replace the ticket. That’s the case because it is not unique and verifying ownership is tasking.
Empowers People to Become More Creators Than Consumers
Ensuring an ecosystem where people are not just consumers but are also creators is important for the development and full realization of the promises of the Metaverse. NFTs assure that, as anyone can mint and sell NFTs.
The rise of NFTs is accompanied by the rise of creators. The barrier to entry is low. All you need is knowledge, your mobile device and the internet to create, publish, and sell your NFTs. By and large, NFTs are needed to actually realize the promises of the Metaverse.
We live in times where our lives and essence of being revolve around technology. From being able to read content, to being able to read and interact, to being able to use video conferencing apps and watch live shows regardless of present location. Now, we are tilting towards the future of being able to be in the experience. The future of the internet is golden and its possibilities, are endless. With the Metaverse, the world of work, connection will take another dimension as a lot of things would be redefined. NFTs are key to ensuring that things work in reality as it is on the paper that explains the Metaverse.
Frequently Asked Questions
What impact will NFTs and the Metaverse have on our lives?
The integration of NFTs and the Metaverse promises to redefine how we work, connect, and experience the world, breaking geographical barriers and creating a more immersive internet experience.
How is the value of an NFT determined?
The value of an NFT is influenced by demand and supply, with factors such as the creator’s reputation, the asset’s uniqueness, and buyer interest playing significant roles.
How do NFTs provide safety in the Metaverse?
NFTs contribute to safety by verifying ownership and authenticity of assets, reducing chances of theft, and preventing piracy and unlawful duplications.
How do NFTs play a role in the Metaverse?
NFTs serve various functions in the Metaverse, including facilitating the trade of digital assets, ensuring safety against theft, piracy, and counterfeit items, acting as tickets for virtual events, and empowering individuals to become creators.
What is the Metaverse?
The Metaverse is a virtual world that aims to provide immersive ways to connect, share, and experience events, facilitated by technologies such as virtual reality, augmented reality, and blockchain.
What are Nonfungible Tokens (NFTs)?
Non-Fungible Tokens (NFTs) are unique digital assets verified using blockchain technology, representing ownership of a specific item or piece of content.