NFTs in Metaverse are gradually redefining the existing mechanisms of socialization, interaction, and gaming as the Metaverse continues to evolve. NFTs have gone far from being called “overly expensive JPEGs” to emerge as a promising digital asset class. As the NFT craze grows, celebrities, athletes, actors, musicians, and global brands are jumping on board.
Related: Apple Has Allowed NFT Sales On its App Store with 30% Tax
The Metaverse’s Connection To NFTs
Blockchain, augmented reality, virtual reality, artificial intelligence, and other novel technologies are powering the much-hyped Metaverse. Every user in this virtual world has a fully customizable “digital avatar,” which represents an individual in NFT form in a virtual world that some say will gradually become a replica of the real world. Like in the real world, users can travel around the Metaverse, interact with other users, and perform a variety of activities using their avatars. Metaverse allow everything to be interconnected and accessible through a single account, application, or web browser.
Brands and NFTs
A key component of the Metaverse are NFTs. Many elements of the Metaverse, including your digital avatar, are NFTs. Many mainstream brands, such as Nike, Adidas, Gucci, Gap, and Balenciaga, are already making their way into the Metaverse, as well as Play-to-Earn (P2E) games. NFTs provide a connection between these brands and P2E games because they are part of the larger Metaverse.
It is the value of digital assets that connects the metaverse and NFTs. People can showcase their digital properties in the metaverse, such as Nike sneaker NFTs, virtual land in The Sandbox, and storefronts in virtual malls. These digital assets are represented by NFTs, which prove ownership and enable multiple revenue generation opportunities.
NFT projects
New projects are exploring other unique concepts to enhance NFTs’ value and utility. In a recent release, Affyn unveiled new NFTs for its Nexus World Metaverse. It can be seamlessly integrated across Metaverse applications and services. With the entrance of more brands and projects into the Metaverse, NFT ownership will become a prerequisite to becoming a member. Exactly for this reason, brands like Nike and H&M have already made millions selling virtual fashion collections in the metaverse, also called NFTs.
There is no doubt that in the near future, the Metaverse will continually open new horizons. With big-tech companies tapping into the Metaverse and its underlying technology stack evolving at a rate unimaginable in the past.
Conclusion
Besides being a virtual world or a digital escape, the Metaverse is much more. There is no doubt that the Metaverse will replicate real-world experiences, but, more importantly, it will provide the infrastructure to create new business models by eliminating existing closed-wall architectures.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
