How will NFTs be Used in the Metaverse?
Nonfungible tokens and the metaverse are two separate spheres within web3. These two niches are well established and are valued in billions of dollars. However, there is an increasing interconnectedness that binds these two niches together. NFTs will represent all assets in the virtual world and it will be vital to an advanced metaverse economy.
- Non-fungible tokens are integral to a fully functional metaverse economy.
- They will play vital roles in critical aspects of the metaverse such as gaming, avatars and skins, digital goods, and virtual structures.
- This inherent interconnectedness will further contribute to the growth of both sectors in web3
The gaming industry is primarily regarded as the first to adopt the metaverse. The sector has been creating immersive virtual worlds and characters through role-playing games (RPG) long before the metaverse came mainstream.
Already, the emergence of play-to-earn games like Axie Infinity, Splinterland, and the like, have already introduced NFTs to gaming. Now, as gaming gradually shifts to the metaverse full-time, NFTs will also be transferred to the virtual world. NFTs will represent in-game characters, weapons, tools, bounties, and virtual lands.
NFTs will represent everything in the metaverse. This also includes the skins and avatars that will represent each user in the virtual world. Humans will be able to access the virtual world using virtual reality headsets. However, it is impossible to be physically present in the metaverse, therefore, each person will have a digital avatar that represents them.
These avatars are NFTs and they will be used by users to roam the metaverse, work in it and execute any activity that they wish to engage in.
The metaverse is projected to hit $13 trillion by 2030 with around 5 billion users. A bulk of the metaverse economy is projected to come from digital goods that will be bought and sold. These digital items will include collectibles, clothing, gaming assets, luxury items, drinks, and more.
All of these virtual goods will be built as NFTs on the blockchain and made accessible to users in the metaverse through dedicated marketplaces. While NFTs exchange hands in the metaverse, cryptocurrencies will be used as means of payment.
All sectors and industries will eventually adopt the metaverse in one form or the other. Companies within these industries will ultimately require structures just like they do in the physical world. These structures will be built on plots of virtual land. Virtual estates, bars, companies, and the like, will be built as NFTs in the metaverse. A platform like Decentraland already enables users to purchase plots of virtual land.
Non-fungible tokens can be regarded as an essential component of the metaverse. They will make the transition from the physical world to the virtual world easy, granting meaning to interactions and structure to the virtual world.