More than 160 companies are involved in the metaverse. This technology is still emerging and has generated a lot of buzz. Alongside it are NFTs who have seen their share of excitement too.
These two technologies are a perfect marriage. We are still early, so with this excitement, there is also a lot of confusion. What are the benefits of NFTs and metaverses?
Our guide will answer any questions you have. Before you know it, you’ll be entering metaverses and buying and selling NFTs. Read on to get started.
What Are NFTs?
Bitcoin and fiat currencies (US dollar) are both examples of fungible assets. This is because when you hold a bitcoin or a dollar, they are replaceable with another bitcoin or dollar. There are no differentiating characteristics.
NFT stands for non-fungible token. This means that no two NFTs are alike. When you hold an NFT, this is represented as a certificate of ownership on the blockchain.
NFTs come in all shapes and forms, such as art, 3D models, videos, images, text, and music.
Digital art is easy to steal and copy. Non-fungible tokens help fight against this by proving provenance and who the actual owners are. You can see the chain when an NFT passes hands.
You hold NFTs the way you hold cryptocurrency—with a wallet. A popular choice is the hot wallet MetaMask. While a hot wallet is more convenient, you will want a hardware wallet if you take your security seriously.
What Is the Metaverse?
The metaverse is a 3D space where users have ownership and autonomy. Transactions are fueled by micropayments with cryptocurrency. You enter the space with your avatar, sometimes with a VR headset or with augmented reality.
You are free to roam around the land, converse with other users, and build the virtual world together.
Many of these metaverses have their native tokens that fuel the economy. A lot of them are built on the Ethereum blockchain for example SAND for Sandbox. It is also the evolution of gaming from Fortnite, Roblox, and Minecraft.
Many believe metaverses are the future of the internet and Web3. NFT technology plays a big part in this because ownership can be transferred crossed blockchains and games.
Benefits of NFTs in the Metaverse
What are the benefits of NFTs in the metaverse? Why are they better than traditional digital assets? Let’s take a closer look.
Because of blockchain technology, trading crypto assets is much more secure. The blockchain is an open, decentralized, immutable, public ledger. This means that the chances of hacks and scams go way down.
Every transaction involving NFTs gets recorded on the blockchain. When compared to trading virtual assets traditionally, blockchain is the clear winner.
One of the benefits of NFTs and crypt assets alike is their scarcity. When there is a finite amount of something, the value increases. When the value increases, so do the excitement in the space.
Never before has it been possible to monetize assets in the digital space. This attracts investors, brands, and creators to the metaverse space.
NFT technology can be used to help build new income streams and fund metaverses.
What is the role of NFTs in metaverses? NFTs are mainly viewed with a website with transactional information. Not all, but a majority of metaverses are VR-based. How do these two technologies merge together, then?
Many companies, entrepreneurs, and artists alike are finding creative ways to take advantage. Virtual offices, stores, events, movie premieres, and many more use cases are coming out daily in the space.
VR and NFT technology are a natural fit in the metaverse. If you collect NFTs, the metaverse serves as your trading ground. Share your NFTs with others to view or sell with a link right in the VR chat.
Brands are seeing the benefits of NFTs and the metaverse too. Buy a piece of property and show off your non-fungible clothing for all to see.
For the art collector, you can now head to the metaverse to build your collection. With your avatar, you can walk right up to the piece and see every detail.
These NFTs differ from a traditional marketplace since the price will be fixed. The atmosphere is much more relaxed because you won’t be caught in a bidding war necessarily.
If you come from the traditional art world, you will feel right at home in this digital space. As you start to collect NFTs, you will love displaying them in your home with a “phygital” frame.
Another way of thinking of the metaverse is as virtual land. This means that users can buy and sell plots and virtual properties in the form of NFTs. Virtual real estate is a lucrative business, much like in the traditional sense.
This is an exciting and emerging landscape to explore. You could host events and have exclusive clubs for members with NFTs as the gateway.
Popular metaverses to buy and sell 3D plots are Decentraland and The Sandbox which we’re partnered with. Then there are new metaverses like Immersed are launching to drive lots of demand from businesses for virtual real estate. These properties can then be sold on secondary markets and many lease them out to people or companies who don’t want to hold virtual land on their balance sheets or deal with self-custody.
Immerse Yourself in the Metaverse With NFTs
The best way to learn what the benefits of NFTs and metaverses are is to just jump in. As you play, you’ll learn how things work. You’ll learn how to create NFTs for yourself and show them off in a metaverse or two.
You’ll also learn what not to do and how to protect yourself. You’ll know what NFTs are worth taking a look at and which ones to pass.
If you’re a creator, you’re right where you belong. Build your skills and use software to your advantage. Get started with Sandstorm right away.