NFTs and the Metaverse: Exploring the Intersection of Crypto and the Digital Future

The rapid proliferation of cryptocurrencies across the past several years is now starting to manifest into significant impacts on our lives; currently, one of the most talked-about ideas is the Non-Fungible Tokens (NFTs), and how such a concept would interact with something like the Metaverse.

We are seeing the emergence of value in digital domains that are connected extensions of the physical world – with promises, or threats, for our futures. What are NFTs and the Metaverse, how are they connected – and what kinds of futures will they enable?

NFTs: Owning the Digital

NFTs are non-fungible tokens – digital certificates that are stored in a blockchain ledger. At root, NFTs are deeds of title, imbuing verifiable scarcity and proof of authenticity for all kinds of virtual goods. NFTs go beyond fungible tokens such as Bitcoin, where one unit is identical to another, to things that are one-of-a-kind creations and can include digital artworks, music, gaming items, collectables or virtual real estate.

NFTs are used quite a lot already, especially in digital-first industries like online gaming. One game that is gathering quite a lot of interest online is blackjack; similar to what you would experience when playing blackjack in a real casino, you can play against a dealer, collect your cards, and place your bets. However, a lot of developers have gone one step further and created online Bitcoin blackjack games that take the same rules of the popular game, but allow players to place bets with Bitcoin instead, and then get a high-value NFT in exchange for a winning bet. For a lot of gamers, this is better than getting just a greater sum of cash back – it’s something unique and scarce that not everyone can access.

NFTs have enabled a new era of scarcity and authenticity in digital ownership. If digital commodities lack value, it’s because they are essentially impossible to counterfeit and distribute endlessly, as has historically been the case. By injecting verifiable scarcity into brand-new forms of ownership in the digital realm, we’ve managed to bring these pieces to life.

The Metaverse: A Persistent Virtual Reality

The Metaverse is supposed to be the next generation of the internet, a 3D network-of-networks mosaic of virtual worlds in which humans use avatars to wander around and interact with each other, and do everything we would do in the real world – but virtually. You might go to a virtual rave, work on a project with friends in a virtual co-working space, or maybe buy some digital land and build your dream skyscraper.

With its vast possibilities for changing how we relate to each other, work and play, there are a lot of wealthy people who are pouring their money into the Metaverse, assuming that it’s going to completely take over the world.

The Convergence: NFTs Fueling the Metaverse

NFTs and the Metaverse have a synergistic relationship. Because of NFTs, the Metaverse has become possible. They create ownership in the Metaverse as, say, an NFT gives you an avatar, wearables, or other tokenized assets. In a sense, owning an NFT is the very principle of provenance. You own it, can trade it, sell it or use it within the Metaverse.

Think you’ve bought a unique NFT costume for your avatar, one that gives you special access to an exclusive virtual party or social circle? Think you’ve bought an NFT for a plot of virtual land, which you can use to build a virtual mansion or a virtual blackjack skunkworks you monetise through an entry fee in crypto? There’s nothing like the opportunities for ownership and monetisation that NFTs make possible in the Metaverse.

The Benefits of NFTs and the Metaverse

This intersection of NFTs and the Metaverse unlocks a plethora of exciting opportunities, including:

• Digital Ownership: NFTs allow creators to monetise their work, and give true digital ownership to the collector.
• Supercharged Virtual Environments: With NFTs, the Metaverse becomes more personalised, as users can resemble their ideal selves with personalised avatars and a collection of virtual items.
• New Economic Models: The Metaverse will support a vibrant virtual economy where owners can buy, sell and trade NFT-based assets, opening up new income streams.
• Community: Strong communities can form when users jointly own property in the Metaverse, allowing them to interact and collaborate.

The Future Beckons

The ability to own, use and monetize virtual assets in the Metaverse enhances the possibilities available for creativity and innovation. There’s still going to be a lot of change but, if we can make it through, we might live to truly see an interconnected global digital economy where avatars are seamlessly inhabiting our screens, as they already do in movies like Ready Player One – sounds pretty cool, right?

This new digital space is undiscovered territory and the technologies such as NFTs and the Metaverse are giving us the chance to be part of creating its future. Strap yourselves in – the coming internet is going to be an adventure.