What is the Connection Between NFTs and Metaverses

The technological as well as investment goal of metaverses is to connect physical reality with virtual reality, creating a digital space in which we can all come together and perform actions that affect both the virtual world of our avatar and the real and physical world. In the Metaverse, we will find a new ecosystem in which video games will certainly have their place, but it will also create attractive opportunities for business, learning, leisure, and entertainment.

The Metaverse is a constantly working virtual space in which people interact with digital objects and with each other, including with the help of virtual reality technologies. Companies want to see virtual worlds that combine all available technologies and devices and seek metaverse services that can help them create what they are looking for. 

However, how will the users claim and retain their identity in the Metaverse? How will people be able to make purchases in the Metaverse? This is where NFTs come into the picture. In this article, we will look at what exactly NFTs are and why metaverse NFTs are so important. 

What are NFTs?

NFT token (non-fungible token) is a unique digital certificate stored on the blockchain that guarantees the originality of the item and gives exclusive rights to it. This concept came from the world of cryptocurrency. Non-fungible tokens cannot be gradually replaced, divided, replaced. The system is suitable for securing rights to a unique object – a work of art, real estate, an artifact in a computer game.

Simply put, each entry in the blockchain is called a token. All tokens are like coins of the same monetary value in an open blockchain, equal and interchangeable. Cryptocurrency money works like this: for example, one bitcoin can be easily replaced by another, and nothing will change. But NFT technology is a game-changer and works differently. A non-fungible token is a digital coin that another token cannot replace without changing the value and essence of the object.

NFTs are created on a blockchain like cryptocurrencies, which acts as a database for recording all transactions. Blockchain guarantees the authenticity of non-fungible tokens. Thanks to this system, any user can verify the origin and history of a particular NFT through the blockchain. When buying an NFT token, the user acquires a certificate for the work. In this case, the work itself does not move anywhere. It is located on the eternal storage (IPFS). This certificate, in essence, is a line of code that confirms that the owner of the token is the owner of the original copy of the object. An NFT token is likened to a painting, which may belong to a gallery, museum, or individual, but the audience can see it in a catalog or at an exhibition.

Using NFTs in Metaverses

Non-fungible tokens are used in the Metaverse to represent items whose ownership is unique and unrepeatable. This is very important since people will want to purchase products that are authentic, they will want to secure their own identity, they need to be able to claim ownership of property, and many other things. 

Metaverse NFT projects would drive the possibilities of using NFTs as deeds to virtual property. NFTs could help in gaining exclusive access to enter the location in Metaverse alongside allowing access to others. Interestingly, the smart contract functionalities in the NFT could also help in selling real estate on the Metaverse. The use cases of NFT in Metaverse would focus primarily on NFT-controlled access in the initial stages of metaverse development. Just like the first-ever real-world example of implementing NFTs in the Metaverse, NFT-controlled access could help in ensuring VIP access to real-life events and the events in the Metaverse. 

Are Metaverse NFTs Really Needed?

NFT products for the Metaverse are definitely needed since they allow us to digitize objects and transfer them into the virtual space. The development of tools to expand the capabilities of NFTs has also become an important trend, which determines the speed and quality of the development of the metaverses. There are various NFT metaverse tools that allow you to, for example, borrow and lend NFTs. Smart contracts provide temporary transfer of ownership of digital assets in the system. 

This opens up new development opportunities for participants in virtual worlds: 

• Players may need NFTs to complete new levels or upgrade their characters in the gaming sphere. Inside virtual NFTsof, many games “pack” important elements of the gameplay. By borrowing the non-fungible token of interest, the player can achieve their goals. Popular platforms like Roblox are already using NFTs. If you wonder what NFT means in Roblox, you can use NFTs in PlayDapp Town, a virtual world in which players can buy and own NFTs. These NFTs can be unique characters, and these can also be used in a variety of other (upcoming) games in the PlayDapp ecosystem.
• NFT products can also reflect ownership of virtual real estate in the digital world. In the metaverses, analogs of known buildings are being “built.” For example, in the virtual space, Decentraland created a copy of the New York skyscraper One Times Square, on the roof of which the New Year’s ball is held annually. The NFT loan, which reflects ownership, will allow users to rent a building for business meetings in the virtual space.

What Will NFTs Have on the Metaverse? 

First of all, the availability of an NFT product opens the door to a fairer economy. Presently, users and businesses can port over real-world assets and services into the Metaverse, and one way of inviting more real-world assets to the Metaverse is by using innovative gaming models with interoperable blockchain games. The play-to-earn gaming model is one such approach that engages and empowers players of blockchain games. By relying on NFTs, players can participate in in-game financial economies in the Metaverse and get rewards for the value they add, essentially earning while they play. Play-to-earn games are also fair in the Metaverse, as players get full ownership of their assets instead of being controlled by a single game entity like most traditional games. 

NFTs will also play an integral role in identity, community, social experiences, and ownership of virtual products in metaverses. Holding certain NFT assets can signal a user’s project support or convey perspectives about the virtual and real world. This allows like-minded individuals holding such NFTs to band into communities that share experiences and create content together. One example of such NFTs is the trending NFT avatars.  

Virtual NFT avatars represent a player’s real or imagined self. Players can use NFT avatars as access tokens to enter and hop between different locations within the Metaverse. In this case, NFT avatars serve as an extension of our real-life identities, where we have full ownership and freedom to curate and build our virtual identities in the Metaverse.

Trust Skywell Software With All of Your Metaverse Development Needs

Creating new metaverses and NFTs that go with them is a complex process requiring specific expertise. It is especially important to get all of the details right since your users will rely on your Metaverse to buy the property and other digital assets, so you definitely want to ensure this aspect is done correctly. Otherwise, you are risking losing users and damaging the reputation of your Metaverse and the brand itself. 

If you have a new idea for a metaverse, you will need to partner with a trusted software development company to make your vision a reality. Skywell Software has extensive experience creating VR and AR products for some of the world’s leading brands. Contact us today to learn more about how we can help you.