If you have found your way to this blog, you have probably already heard (at least a little bit) about NFTs and the Metaverse. What you may not fully understand is how their relationships are intertwined. With all of the buzz around these two concepts, more and more questions have been raised about the potential impact of the Metaverse and what role NFTs will play. To fully understand it, let’s start from the beginning.
What is an NFT?
Non-fungible tokens, or NFTs, are individually authenticated, verifiable, and non-interchangeable items that live on the blockchain. Complete with unique identification and metadata, they are genuine one-of-a-kind objects with only one official owner at any given time. Currently, NFTs are commonly seen as collectible items, like digital art, and the buzz around these pieces is electric.
Buying, selling, and trading these tokens on the blockchain adds an immense amount of security to the transaction. Since each asset has its own unique identification code, it is impossible for more than one person to own the same asset, reducing the possibility of fraudulent transactions. This also adds a layer of rarity to each NFT and definitely more value to the most sought-after pieces. In the Metaverse, NFTs will be used to purchase land plots, boats, cars, and more items of great worth and importance. This past November we saw a mega yacht sell for $650 million; with transactions that large, security is crucial.
What is the Metaverse
To most, the Metaverse is still a theoretical concept, but it is expected to be a virtual world where you can live, play, and work just like in our current world. It’s hard to imagine a day where traveling to see a friend just takes a few motions and a V.R. headset, but that’s where this is headed. No one has a definitive answer of when the Metaverse will be mainstream, but we can likely expect it to be a regular part of our lives sooner rather than later.
Investing time and money in the Metaverse now could prove to be beneficial in the long run, but many are still skeptical. You might not know that there are already companies building worlds in the Metaverse: Epic Games, Meta, Roblox, Microsoft, and NVIDIA just to name a few. Several virtual worlds are already standing out amongst the rest in popularity. However, it is still expected to take more time before the Metaverse gains the recognition needed to be mainstream.
What do NFTs have to do with the Metaverse?
NFTs and the blockchain will have big roles in the Metaverse. Earlier we mentioned that NFTs are right now most commonly seen as pieces of digital art, but in the Metaverse, they will be so much more. The same process used to buy and sell NFTs now will be used to buy all kinds of assets in the Metaverse. From real estate to sneakers to event passes, NFTs are more than jpegs and gifs in the virtual world. There will be no need for banks and debit cards in a virtual world reliant on the blockchain to verify transactions, and NFTs make it easy to transport information across spaces in the Metaverse, like your wallet in your pocket in the real world. Without NFTs in the Metaverse, no one would know who owned what, but thanks to the blockchain and NFTs, there won’t be a question.
Similar to how vintage records and first-edition novels hold greater value due to their rarity, early adopters of NFTs expect their early purchases to have more value in the Metaverse. Today you will see many NFTs being sold are only being made in limited quantities, adding to the uniqueness of each piece minted. Whether it be through an art display in their virtual home or through a unique avatar skin, NFTs bought today will be seen in many ways in the Metaverse in the future.
Those interested should know that many NFTs are designed to offer value outside of the Metaverse. For example, The Creator Passport NFT offers perks and utility outside of the Metaverse, such as passholder events, community discords, and exclusive brand partnership opportunities for creators. So if for some reason, the Metaverse isn’t for you, don’t count yourself out of the NFT market just yet.
In summary, NFTs will still hold value outside of the Metaverse, but without NFTs and crypto tokens, the Metaverse would crumble. As with any big purchase, do your homework, check off the boxes, and make a smart buying decision based on your needs.
To learn more about how you can mint, grow, and create with the Creator Passport NFT and apply for the presale, visit here.