NFT Role in the Metaverse Economy


NFT Role in the Metaverse Economy

Imagine a virtual world where you will be able to visit sites, go shopping, drive across town, and meet at a café with friends. All these scenarios will be made possible in the virtual world. You will be able to accomplish all your imaginations thanks to the rapid advancement of this technology. Metaverse is not a new technology. It has been there for some time.

The only difference is that decades ago, the new advancements that we are seeing now had not been developed. They existed in the form of multiple online playing games. Currently, we are on another level that brings out the true meaning of fun and opportunities, and sooner, we will enter an era that will not be distinguishable from the real world. Companies Like Decentraland and Somnium Space have already begun to develop their new societies. With the users trading items, settling the land, and interacting through games.

For a society to function, it needs a stable and working economy. Every digital item is verified in the metaverse from cars, clothing, pictures, and buildings. This in turn ensures that the economy is secure and functioning. For the metaverse to grow, it will need the freedom to move to other metaverses trading, selling, and even purchasing. Digital assets are stored in the blockchain.

With NFT, the authentication process will be smooth. Every item will be verified, and this will ensure that identity theft is not achievable. NFTs are protected by a key called a cryptographic key. This key ensures users’ data and personal information is not hacked or even replicated. Also, it guarantees there is a strong verification process to protect the user’s possessions.

Apart from NFTs selling their arts at large sums of money, they also open new opportunities where users can engage freely, sign contracts, have independent ownership of property just like the real world. The COO of Eric Anziani pointed out that aside from NFT being recognized for digital art, it was going to be the platform that will represent any item or asset in the metaverses in the future. The Metaverse: How is Property Developed in the Metaverse?

When you log in to Decentraland, there are so many activities that you will find. You will meet people chatting by the fountains, guests walking in a casino, and people going to movie theaters.

All these activities are achievable with the aid of virtual world real estate development. People buy land and build scenarios that happen in real life but the metaverse. This technology has not reached its completion and there is still a lot to be done to make the physical and the virtual world similar. Some of these creators say that the technology is still in its early stages.

But this has not stopped people from flocking the metaverse in search of new business opportunities, social interactions, as well as exploring the metaverse. Note that, the value of the virtual land will depend on the place you want to purchase that land. For instance, if you want a place that resembles Beverly Hills, it will come at a high cost.

The notion of Decentraland and other metaverse economic development relies on their closeness of land. All metaverses border each other and on a specific location. This concept in turn results in a shortage of goods and services. Scarcity raises the prices of items and property based on the law of demand and supply. Property possession, selling, and trading of items in the metaverse are all handled by NFT.

It provides proof of ownership of land, a building, or and any other item. Anziani pointed out that, NFT database was impossible to replicate or corrupt due to the smart system that has been put in place to prevent any duplication. He further explained that if you owned property or an asset in the metaverse and you have all the documents and files for proof, you can claim the ownership rights of that property.

Is Property in the Metaverse Worth all the Hype? Currently, real estate is a booming business in the metaverse. These came after the evolution and advancement of the real estate industry. In June, a parcel of land in Decentraland sold for $900,000; it was purchased by Republic Realm, a company that specializes in digital investment. This company is aiming at transforming the digital land into a mall that will be called Metajuku named after Harajuku which is a district in Tokyo.

These are the activities that will bring investment opportunities to the metaverse, Real estate investment funds (REITs) have begun their plans to shift their businesses in it. Corroborating what the creators had hoped for when they launched it in 2017. A proposal by Decentraland to its application developers was that they take full sponsorship of the economic interactions between the users and their applications.

One of the metaverse declarations reads that “for the economic interaction to work, three things have to be traded: currency, goods, and services”. When metaverse was first developed the fashion industry was the first to join in. And over the years this industry has seen tremendous growth. Louis Vuitton developed its own video game called LOUIS THE GAME and another company like Luxury house Burberry created accessories that were used to play a video game in the Blankos Block Party.

A shoemaker of metaverse sneakers has recently posted over millions of dollars in sales. He designs unique sneakers and sells them through NFT for players. More people are open to the idea of Cryptos. Five months ago, there were 100 million users. Currently, the number of users is at 200 million and this number is expected to go up”. says Anziani. He strongly believes that the combination of virtual worlds and blockchain will result in the tremendous growth of metaverse.

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