Why Are NFTs the Keys to the Inevitable Metaverse? Non-Fungible Tokens (NFTs) are versatile and transparent digital representations of a piece of media content or a physical item that denote proof of ownership on the blockchain of each respective network. Though many appear to be simple static images, they can come in many shapes and forms and have a wide range of uses and benefits that we can’t always see from their visual representations. In fact, many believe NFTs are the catalysts that enable a more robust and engaging experience throughout the emerging Metaverse we’re slowly beginning to see take shape.
The Metaverse itself is still very much an abstract concept. It can be defined as the next iteration of the Internet, combining features of blockchain technology, decentralization, social media, digital assets and cryptocurrencies, virtual economies, gaming, and entertainment. NFTs fall within the Metaverse sphere and help facilitate different components of its breadth, which will be detailed below.
NFTs as Artwork:
Art NFTs give enthusiasts a unique way of owning a digital token representing the original artwork that can be proudly displayed in different metaverse settings, such as virtual worlds or even in real life using a digital display. While not every piece will increase in value the way top projects such as CryptoPunks and Bored Ape Yacht Club have (with the most inexpensive tokens from each currently available for $202,770.28 and $255,225.81 respectively at this time of writing), not everyone buys artwork to resell at a later time. There is a large market for art collectors who buy NFTs for their own personal enjoyment. Additionally, artists who make NFTs out of their pieces are able to gain a lot more exposure and make higher amounts of money and royalties thanks to the open nature and versatility of selling digital tokens representing their artwork for cryptocurrencies.
NFTs as Social Identities:
A popular subgenre of NFT collections known as avatar projects are usually comprised of several thousand generative artworks of different characters, be they human, machine, animal, or food. Each NFT in these collections have unique traits with their own rarity rankings that are randomly generated and assigned at the time of minting, potentially making certain tokens in a collection more valuable than others. But these avatar projects are more than just cool-looking pieces of art, they are often used as profile pictures on social media by collectors, giving them a distinctive digital identity they can use across the Metaverse. Certain NFTs from well-known projects are even used as a sort of status symbol online. Many users form special bonds with their avatars, and they can quickly become a part of their virtual self. This combined with the sense of belonging brought forth by joining a community of like-minded NFT collectors brings people closer together and provides a familiar group of acquaintances in the vast Metaverse.
NFTs in Gaming:
Gaming is another subsection of the Metaverse that’s quickly growing in size and scale. While not new, blockchain-based play-to-earn gaming has seen a large influx of new titles released and new players looking to earn rewards for their gameplay in the last couple years. NFTs in these games can be anything from in-game items utilized in the game world to virtual land and structures to playable characters, such as those found in our MOBA game Versailles Heroes. Gaming NFTs help the Metaverse economy prosper through letting players buy and sell them freely via in-game marketplaces as well as third-party marketplaces such as Opensea, Binance NFT, and Magic Eden.
NFTs as Digital Collectibles and Access Passes:
Lastly, NFTs can be unique digital collectibles of images, videos, songs, and more that can be kept or resold on the open market within the Metaverse. For example, NFT collections like NBA Top Shot let fans collect clips and digital memorabilia featuring their favorite players, teams, and basketball highlights. Some NFT collectibles even act as access passes, granting holders access to exclusive content and events, such as the recently auctioned off Coachella Keys collection, which comes with perks including two lifetime passes to every annual Coachella music festival, VIP area access, free merchandise items, free admission to virtual events, and a luxury dinner prepared by a personal chef.
All in all, NFTs are a complement to the evolving Metaverse, giving it a thriving economy of visually pleasing artwork, deeper social connections, decentralized finance and income generation opportunities, gaming assets, digital collectibles, access passes, and more. They helped make the Metaverse what it is today and will continue to shape what it becomes in the future, leaving a lasting impact we can all appreciate in various ways.
The Key to The Creation Of The Metaverse – NFTs
The nature of the virtual world removes restrictions on the types of assets that can be created and possessed, and NFTs give a transparent and verifiable mechanism for proving ownership.
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