Wondering “What are NFT and How to Use NFT Tokens”. The Metaverse is the most trending technology of the future world. It has the potential to revolutionize the future world completely. And the predicted future is not far away from today.
Even the most high-tech company Facebook has changed its name to Meta. Facebook CEO Mark Zuckerburg declares that the company is going to launch the metaverse in the next 5 years.
After Facebook changed its name, the metaverse became the trend in the market. Big tech companies are investing a lot of money to create the NFT and metaverse world.
However, the majority of people don’t know about metaverse technology and its working and usage. So, what do you think exactly about metaverse technology?
Well, if you are confused about the metaverse technology, and don’t know about the working of this advanced technology that will gain more popularity in the future world. Don’t worry about it. Here in this article, we are with the “that will focus on clearing all your doubts.
Before starting, let’s understand the metaverse technology concept and virtual world.
What is Metaverse technology?
Metaverse technology is a 3D virtual world that combines highly advanced technologies such as virtual reality, augmented reality, and 3D world. It gives the user a virtual environment where people can create their avatars and through these avatars, all the meetings happen in the virtual buildings.
The term “Metaverse” was first coined by the world-famous author, “Neal Stephenson” who was the author of the sci-fi novel “Snow Crash” in the year 1992.
The concept of metaverse technology is now somehow a hypothetical technology. However, some of the fortune 500 companies are working to develop this advanced technology.
The metaverse concept has many definitions because every organization defines it in its specific way. However, the core concept of the virtual world remains the same in all the respective definitions.
According to Facebook CEO Mark Zuckerburg, the metaverse is described as “a virtual reality construct intended to supplant the internet, merge virtual life with real-life and create endless new playgrounds for everyone — you’re going to be able to do almost anything you can imagine.”
OXford described the term metaverse as “a virtual-reality space in which users can interact with a computer-generated environment and other users.”
The Disney Metaverse introduced in the market by Disney will be a stepping stone for Disney’s plans. It is used for the overlapping of both physical and social life.
What are NFTs?
The term NFTs stands for the Non Fungible Tokens. It is defined as intangible digital assets that are located in the form of games, videos, or photos.
The definition seems so complicated and confusing, yet the concept of NFTs is so simple. So, we are going to explain the core concept of NFTs simply.
Okay, let us explain the concept of the NFTs by an example of an exceptional painting. The painting is designed using art and craft software, and the ownership of the painting remains to you. In the digital world, you are the creator of thousands of paintings. And you have produced and sold copies to the people. Although you have the original rights to the painting. So, here, you can create and use an NFT of the original painting. In other words, an NFT is considered a token or certificate of the original painting, and you have the intellectual rights to the painting. Meanwhile, you have sold the possession of the original painting to the buyer.
How to Use NFTs In Metaverse
NFT’s is the key component of the metaverse. The exponential growth of the metaverse platform heavenly relies on the tokenisation of assets. It is expected by the team of experts that it would work as a real assets work in the real world.
The role of NFTs in metaverse is undoubtedly vital. Here’s the key areas where NFTs can be used in Metaverse.
Crypto Art is the most popular way of using NFTs in the metaverse. It allows the talented artists worldwide to showcase their talents and monetize them with the help of blockchain. The notion includes the creation of piece of art, mint the NFT version on the blockchains, and put them up for sale.
Crypto Arts leverages the digital landscape as it allows thousands of artists want to work independently. Since beforem it relied on services of intermediaries.
On the Other hand, NFTs offers self initiated method of accessing buyers where it leys the user to create an NFT version of their works, and later list them on the marketplaces such as .
The bes t thing is that all things done doesn’t require hassle of the middl-men in the complete process.
NFT games is undoubtedly gained a lot interest because of its play to ear benefits. Gamers can enjoy their facorite games simply by using an NFT anchor for their gaming experience.
Moreover, the gamers will have to tokenize their in-game assets. These assets includes the modern weapons, and avatars. It is used in a way that the user that acquire and unlock them of their own. Additionally, they can sell them ot trade them in for more bonuses.
Tokenization is the key component of the NFTs in metaverse. It allows the users to tokenize the real life assets. Furthermore, the assets can be divided to allow two or more investors to own such real world assets.
Moreover, it also allows partial acquisition of the real world assets for those investors who cannot acquire the assets.
The Integration of Decentralized Finance (DeFi) and NFTs to create a vast ecosystem where users users have the access various yield generating opportunities.
There is a high chance of collateralizing your NFTs to access loans. It results the disinterest of people to sell NFTs to raise funds. For accessing this, all you need is to do lock the NFT on a Defi protocol as collateral and receive the percentage of NFT worth amount.
NFTs have the enormous potential to eliminate some of issues associated with digital identities. The immutability of blockchain data can be capitalized by the digital identity systems to lessen the occurrence of identity fraud.
Transparent and fair economy
Metaverse has the enormous potential to port the real world assets and services into its virtual decentralised environment. One of the most innovative way of inviting real world assets is through play to earn games.
Play to earn is a unique concept that engages and empowers blockchain gamers. It allows the players to take participate in the game and earn for the value they add while they play.
Guilds act as intermediaries that can be used to purchase gaming assets such as land, and properties. It also lends the assets to players that use them for earning money, and a little share of his earning would be taken by them.
Virtual Real Estate Development
Likewise real world, NFTs allows the users to buy virtual properties in the Metaverse. The fundamental concept of blockchain technology and NFTs allows the users to own and develop virtual real estate based on their preferences.
Meanwhile, these virtual assets is a great source for earning passive income. It allows the users the freedom to purchase, trade, and rent them.
Furthermore, likewise in the real world, virtual real assets can be used for building online stores on the virtual land and also these spaces can be used for hosting social events.
Decentraland is the most popular example of how virtual products are auctioned in NFTs.
Fashion Industry and NFTs
Metaverse would revolutionize the fashion industry in the future. It has evolved a lot. It allows the users virtually go a website, and find an relevant article of clothing to purchase.
In metaversem there is possibility of the concept “try before you buy”. In the current fashion industry, usages of NFTs has the opportunity to turn digital designs and collections into highly scarce, valuable, luxurious, and unique collector pieces.
For instances, the Fashion brand Burberry partnered with Mythical Games to launch the non fungible token (NFT) collection in their flagship title, Blankos Block Party.
The popular fashion brand Dolce & Gabbana launched its own collection of NFT on the polygon nmed Collezione Genesi.
NFTs provide the enormous opportunity for several social and financial opportunities by offering unique ways for people to transact, interact, earn, and gather in the digital environment.
We believe NFTs can be a breakthrough technology that has the enormous potential to unlocking a new world of wealth and leverage in the emerging metaverse.
Narinder sharma is a professional Full Stack developer and technical expert based in Jammu City, India. He shares valuable information about Metaverse, NFT, Virtual Reality, and the latest technologies.