NFTs, Metaverse, and Crypto Tokens all serve their unique purpose but also contribute immensely to the growth of each other. Each of them is interconnected which helps in their development. For a better understanding of what they are, we would be breaking them down and looking into each of them.
NFT is the acronym for Non-Fungible Token. They are digital items that can be traded on blockchain technology. Since they are not fungible, they serve as a different kind of asset that is based on popularity and value.
The metaverse is a three-dimensional online universe that is made up of multiple virtual entities. Many people regard it as the future of the internet where they can meet, collaborate, socialize and play games in 3d spaces.
These are very different from crypto coins as they do not have their blockchain. They work using cryptocurrency blockchain. So you can find many crypto tokens running on several crypto blockchains like Ethereum for example which powers Stablecoin.
Trading these cryptos in various top exchanges has ensured that several apps like Bitcoin profit can be used to take advantage of the volatility of crypto prices.
With that said let’s see how these three separate entities interconnect and how they are useful to our generation.
The Connection between these Entities
A metaverse is a digital representation of our reality. In this reality, we are going to be represented by avatars that we can create to look how we want. This avatar is our existence in that reality and we would use then to communicate, move around and visit places created in the virtual world.
The metaverse is not only one. There are many metaverses. Many companies are working on a number of them and they all come with their network protocol. However, they all have the same purpose which is to create an avenue for more physical interaction with the digital world.
Where crypto comes in is that it would be used in handling transactions and other relevant trade in the digital world. They are the main means of exchange and store of value. NFTs allow for the sales and purchase of valuable digital artwork on the network.
The same way a person prides in having a rare wine or painting or car, that is the same way an NFT artwork works. Many people can make and own prints of the artwork but they would not own the original and ownership isn’t transferred. While all these may not make sense, there is a link between them.
NFT Interaction in the Metaverse
People who interact in the metaverse can own control over digital assets through the use of NFTs. When you purchase an asset, an immutable confirmation of ownership happens on the blockchain that registers this ownership across virtual worlds.
NFTs also help create exclusive environments in the metaverse and enhance the social experience and the digital community. The more the value of your NFT, the more access you can gain to the most affluent and wealthiest communities and also enjoy other high-end freebies.
Crypto’s interaction in the Metaverse
Cryptocurrency has its value of coins in each metaverse. They don’t have the same value across all metaverses. Users will pay for everything in the virtual space using this cryptocurrency. So, they serve as the link between the virtual world and the physical world.
With cryptocurrency, we can calculate the value of our digital assets in FIAT and their possible returns. Crypto’s liquidity around the world allows investors to recoup profit when they sell their NFTs and coins to buyers directly.
The metaverse might still be at its early stage but lots of businesses are already keying into its development and possibilities. The metaverse creates a massive opportunity for crypto to soar. It has might potential and unlocks many possibilities if widely adopted.