Bitcoin has been the draw for many investors in the past year, with the premier digital asset seeing a massive rise in value. However, decentralized applications built on the foremost smart contract platform Ethereum have since boomed.
These blockchain-based applications have engendered entire ecosystems and the Metaverse trend which has become a mainstay as the world gravitates towards a decentralized economy sits right in the middle of it.
This article explores how the Metaverse came into being and how non-fungible tokens (NFTs) play into the narrative. Why are NFTs important to the metaverse? What notable players are there? Let’s find out!
The advent of the Metaverse
October 2021 saw the spotlight shine on the Metaverse ecosystem. However, the burgeoning ecosystem came into being two years earlier in a New York City (NYC) conference on non-fungible tokens (NFTs). At the NYC conference, attendees were allowed in through an NFT-based ticket, which gave them access to VIP dinners and the rare opportunity to showcase a custom message on the Times Square billboard.
Looking back at this singular event gives us a retrospective view of how far the Metaverse ecosystem has come. Multiple blockchain protocols catering to both games and financial services now leverage the strong coherence between Metaverse and the meaning of the NFT ecosystem. The goal is clear – to change how we communicate with one another on the internet.
An early mover in this growing intersection is the Ethereum-based 3D interactive protocol Decentraland. Running with a DAO template, Decentraland’s governance token MANA powers an entire ecosystem of immersive experiences for users and content creators alike.
Aside from Decentraland, household names like Chainers and Axie Infinity (AXS) are popular choices in tapping into the Metaverse ecosystem.
The recently released Chainers, is one of the most note-worthy free-to-play GameFi NFT projects around now. It has seen its community swell to over 100k active users, which points to the project’s growing appeal among NFT and Metaverse lovers.
Chainverse users can easily create NFT characters and compete with one another in a wide range of Play2Earn games. The NFTs can then be developed, grown, and used to battle with other Chainers to earn valid reward points.
Early adopters will get access to limited bonuses, community airdrops, raffles, and giveaways. These early subscribers would also be among the first to mint their very own Chainers NFT.
Reasons Why NFTs Are Cogent to the Metaverse
NFTs have come a long way in the past year. However, the advent of the Metaverse gave the nascent sub-sector a more concise goal for the future. Here are a few reasons why NFTs could be the ice-breaker in the overall crypto landscape.
- Inclusive Ecosystem
NFTs enable the tokenization of real-world assets, meaning physical assets can be added to the blockchain and made available on the Metaverse. One likely channel is through innovative gaming models and blockchain-based games. This way, any individual can easily plug into the Metaverse without censorship. The inclusive nature of blockchain has led to the rise of a new gaming model called play-to-earn (P2E).
P2E is intricately different from the previous gaming models we are familiar with. The play-to-earn gaming model is centered on the players and allows them to earn while playing their favorite games. By tapping into the power of NFTs, players are better able to leverage the in-game financial economies of the Metaverse while getting rewards for their time.
Also, P2E ensures that the players retain full control of their assets, efficiently eliminating traditional gaming companies. NFTs and character-builds can also be moved from game to game, bringing much-needed versatility gamers have been longing for.
- Pivot for New Identities And Collective Experiences
NFTs are also expected to engender a whole new form of identity and collective social experiences as the Metaverse picks up. This way, holders of NFT assets can easily identify with causes they support and find like-minded individuals. One prominent instance is the current NFT avatars.
NFT avatars are the rave of the moment – attracting a wave of celebrity attention. The fact that makes it all even better, is that services like 8 biticon simplify the creation process of such avatars, turning the process into a one-click function.
- Showing Proof of Ownerships
NFTs enable ownership to prove the ownership of virtual properties in the metaverse. They can also develop, sell or rent their virtual lands for a profit with ease using NFTs. Think intellectual property but the digital way.
Decentraland has been the flag-bearer for the Metaverse sub-sector. However, the paradigm is shifting and allowing other promising projects to gain investors’ attention.
Mainstream media have been the purveyor of the Metaverse’s growth and the crypto space. However, these conventional means have been noted to be biased and limited. Due to this, crypto-native ad platforms have sprung up to meet the particular needs of the burgeoning crypto ecosystem. One of the most recognized brands leading this effort is Bitmedia.
How Metaverse Could See Massive Adoption
The correlation between NFTs and the Metaverse is tightly woven, making both mutually inclusive. The Metaverse is much more than a buzzword now, but the fledgling ecosystem has not made enough headway yet.
There is still a lot of ground to cover for the full potential of the Metaverse to reach the far corners of the world but the development is happening at a pace we can’t even catch up with. Your ticket into this world is NFTs and this integration sees no signs of slowing. Metaverse is expected to see remarkable growth in 2022. To tap into the burgeoning ecosystem easily, make sure you boost your knowledge in NFTs.