The transition from NFTs to the world of the metaverse Only in the case of non-fungible tokens or NTFs, the market has closed the year 2021 with more than $22,000 million dollars in sales and everything indicates that this industry will continue to expand unstoppably in 2022.
By Stiven Cartagena •
This article was translated from our Spanish edition.
Opinions expressed by Entrepreneur contributors are their own.
Metaverse and NFT? The most used words in recent weeks come together to generate an impact in the business world. Only in the case of non-fungible tokens or NTFs, the market has closed the year 2021 with more than $22,000 million dollars in sales and everything indicates that this industry will continue to expand unstoppably in 2022.
NFTs and their role in the metaverse
The next expansion niche for NFTs is their direct link to objects in the metaverse. An example of this is the MyMetaverse gaming network, which announced the launch of real estate NFTs to be earned by playing the video game Minecraft, which translates into real estate investment through video games.
This may seem unreal, but it has already been mentioned that a metaverse is a virtual world where users enter through their digital avatars in real time to: work, shop, socialize, learn and be entertained. This immersive digital space tends to resemble the physical world in which we live.
Holding non-fungible tokens will allow for virtual membership in a myriad of unique experiences in the metaverse and in the physical world, thus enhancing social and community experiences. With NFTs users can also get full ownership of their land and spaces in the metaverse, even companies like Adidas, H&M, Nike or Zara have already presented virtual fashion collections in the metaverse, all through NFTs.
But what are NFTs and why did they become a trend?
NFTs are ownership certificates stored on a blockchain and backed by blockchain technology (for example, Ethereum) that are often associated with a digital asset, such as visual art, video, music, or collectibles.
Unlike cryptocurrencies, which can be easily replaced and replaced, each NFT is unique or "non-fungible" and cannot be deleted or counterfeited. In recent months NFTs seem to be overtaking blockchain and cryptocurrencies in popularity. They present a new way of thinking about art property, which is partly why they have turned the art world upside down.
Reaffirming the art world
Digital works, by their very nature, can be endlessly copied and replicated. NFTs do not eliminate that risk, but they do create a unique digital record that authenticates ownership of a particular version of a digital work.
On the other hand, NFTs offer new income possibilities for artists, who are increasingly subjected to greater restrictions, illegal reproductions, counterfeit or pirated products, high prices, saturated distribution chains, the need for physical interaction, etc. In addition, users of the digital age already spend on average more time online than sleeping, so NFT markets are great showcases where you can showcase artistic talent to a larger audience.
Main challenges of NFTs in the metaverse
The first thing to keep in mind is that the ability to generate economies in the metaverses will be very relevant thanks to NFTs, because thanks to them the value within them can be better captured and reflected. And if we add to this the ability to interoperate with other metaverses and networks, then the potential of the technology is endless.
The important role of non-fungible tokens in virtual worlds is more than clear, since the safe construction of these economies depends on them. Although companies are currently exploring the world of metaverses, past experiences have been of great help in understanding the full potential of these technologies. It only remains to continue working on them and make them available to everyone. It will take years to develop, but metaverses will likely be an important part of our digital lives in the future.
(About the author: Stiven Cartagena is editor of Geektime in Spanish ).
