Why NFTs Are the Keys to Inevitable Metaverse?
NFTs have surged onto the cultural scene in 2021, generating sensational headlines and breaking records on everything from the costliest piece of art ever sold by a living artist to the cost of a digital home.
While the focus of these headlines is on individual NFT triumphs, what’s happening in the background is the foundation for something far bigger: the Metaverse.
Metaverse
The Metaverse is a new content medium that combines a computational platform, a social experience, and a financial ecology.
Games are an important component of this vast new digital social medium, but they are far from the only experience or goal.
NFTs will be a crucial component of realizing that creative participative future. In the future Metaverse, NFTs can generate meaning, economic activity, and utility delivery, as seen in the examples below.
Participatory Mass Media
NFTs have the potential to bring millions of people into virtual worlds, but it’s crucial to remember that the Metaverse is still a small participatory medium.
Aside from Fortnite and Roblox, most Metaverses, particularly decentralized ones, have 10,000 daily active users at their height. In May, around 150K-250K users registered into the Dapper Labs NFT Platform of NBA Top Shot daily, whereas Axie Infinity had around 350K daily active users (DAUs).
Fortunately, the NFT space’s technology and innovation assist in onboarding and evangelizing NFT ownership regardless of crypto knowledge or expertise.
The tools for creating, discovering, acquiring, showcasing, and selling NFTs are crucial onramps into the broader NFT ecosystem. Still, they can also be used to enroll digital citizens into the Metaverse.
The economy that is self-sufficient and equitable
The ideal Metaverse will include a robust economy that will revolutionize resource allocation while allowing any participant to find a “job” through virtual labor.
Virtual economies exist in World of Warcraft and Fortnite, but they are typically centralized, closed, proprietary, and extractive. Individuals can be censored (or worse, removed) from economies, rules can be modified unilaterally, and participants’ financial conditions (such as currency supply) remain opaque.
Participants in Fortnite, for example, have no practical method of determining a skin’s genuine scarcity.
As a result of leveraging NFTs, the Open Metaverse(s) will feature virtual economies that can increase in size and sophistication while also infiltrating the virtual and the actual world.
