With advancements in technology, we get to know about new things every single day. While NFT and Metaverse are the talks of the town, people are curious to know how they can change the world.
According to research, the metaverse industry is expected to surpass more than $1607.12 billion by 2030. This clearly shows how the metaverse is becoming an integral part of our daily life more quickly than we thought. But how it relates to the NFTs? Let’s talk more about these digital assets.
What is Metaverse?
Before we jump into the details of the Metaverse, you should know what exactly it is. Basically, it is a virtual world that is backed up by the latest technology and represents a dynamic network throughout.
Being the best replica of the online world, metaverse allows you to perform tasks that you would like to do in real life. This includes meeting your favorite celebrity, earning tokens, and even buying virtual property. Here is what else you can do within the metaverse:
- You can play an online game
- You can pay your finances
- You can socialize and collaborate with multinational corporations around the world
- You can work in a virtual world
Since the beginning of 2022, metaverse crypto coins have gained a high potential, leaving behind the top-rated Bitcoin with a 37,000% increase in volume.
Besides this, you can participate in any event happening in any corner of the world with the help of the metaverse.
What are NFTs?
In blockchain technology, NFTs play a significant role in revolutionizing the world of gaming and the tech industry. These are actually Non-Fungible tokens that you can use and earn real money. Being originated in 2017, it provides opportunities to users in the form of a non-fungible and immutable security system.
Some of the most widely used applications of these non-fungible tokens are:
- Open sea.
- NFT Creator.
- Axie Marketplace.
So what’s the connection Between NFTs and Metaverse
As explained earlier, Metaverse is a virtual world where you can socialize, study, work, or play with people from around the world by sitting on your couch. NFTs and blockchain technology have contributed a lot to metaverse technology.
These Non-Fungible tokens act as digital assets to prove your ownership of different online platforms. In this way, you can verify your identity on all online sites. Enlisted below are some of the benefits of using these Non-Fungible tokens in Metaverse.
1. Provides Security
One of the major benefits is that it provides a more secure and safer transaction as compared to any other digital asset. You can easily trade your assets in the form of NFT without any fear of loss or disruption, which is common in the real world.
Moreover, you will remain safe from hacks and scams as all your data will be recorded in blockchain technology. Unlike traditional methods of owning and minting, NFTs cannot be interchanged but can be bought or sold via various platforms.
2. Sense of Value
Another important advantage of using NFTs in the metaverse is it adds a sense of value to the created items. In simple words, it represents special items and unique things created by the users. For instance, you can create digital arts or virtual games to make the virtual world a more exciting place.
One of the best things about NFTs is it provides monetization opportunity to the creators of the virtual world. With these money-making strategies, it would not be wrong to say that you can now start your own virtual business in the world of digital assets. Here are some ways which can help you in making money with the help of NFTs:
- Sell these non-fungible tokens on NFT dedicated marketplaces
- Buy low-priced items and sell them for profit
- Create your own digital assets and be a part of the NFT creator
- Earn through play-to-earn games such as Axie Infinity.
Difference Between NFT and Metaverse
Although NFT and Metaverse are interrelated, there are some differential points that set them apart. Let’s have a look at them quickly.
1. Use Case
The first difference lies in their use case. To buy NFT, you must use your crypto coins and get a certain amount of these non-fungible tokens per your needs. On the other hand, the metaverse is a digital world in which crypto coins are used to get NFT.
The whole trading and exchange of NFT tokens are based on blockchain technology. Whereas, the metaverse is a digital world where you are the owner of all your NFT assets and are not backed up by the blockchain system.
NFTs are easily accessible on different marketplaces. However, metaverse platforms are limited, and you can access them through virtual reality games and VR marketplaces.
The next part of this article will explain how the Metaverse creates utility for NFTs and the Role of NFT in side the metaverse – for the second part click HERE