There are many possible applications of NFTs around the world, some of the most popular being for art and entertainment, which have seen paintings, tweets, memes, and even songs hit and sold as NFT. However, one of its more interesting applications is likely in the world of metaverses.
A metaverse is a digital ecosystem through which people can meet and interact the same way they do in real life. As the world is moving towards embracing Web 3, metaverses are expected to play a much bigger role, and so are non-fungible tokens (NFTs).
How NFTs Work in Metaverse
Since metaverse works the same as the real world and involves the participation of real people, things like identity verification, asset transfer, and some sort of medium of exchange are needed. This is where NFTs come in as they provide all of these and more.
For example, an NFT conference dubbed NFT.NYC was held in New York in 2019, and conference entry was accessible through NFT-based invitations. The use of NFTs for invites also exists in metaverses as several platforms such as LAND use NFTs to denote ownership of specific in-universe assets.
By now, the world is quite used to virtual events, and the access process can be made easier with a specific type of NFT called digital invite tokens. These tokens are NFTs made for the purposes of acting as invites to events virtual or otherwise. Thanks to these, participation in events can be managed more efficiently and counterfeits can be eliminated from the market.
Many users are already familiar with metaverse gaming universes like Animal Crossing and Fortnite, and within these games, assets are traded all the time. NFTs have great potential for application in this context because an asset traded as an NFT has a greater guarantee of authenticity, and its transfer of ownership is recorded for all to see on a blockchain. Given that metaverses often require some sort of virtual economy to stay afloat, tradeable asset NFTs are extremely important.
As users interact more with the Metaverse, they can efficiently trade assets both in real life and digitally using NFT, ensuring a seamless transition between the digital and physical economy.
Mediums of Exchange
NFTs within metaverses can also be the in-universe mediums of exchange themselves, as some of them exist as a currency, especially in the gaming applications. Games like Monsters Clan reward their players for completing tasks and challenges with NFTs, which essentially makes them a currency unto themselves. Should metaverses become as internationally used as they are currently poised to be, some sort of universal currency to unite all users will be needed, and NFTs could fill this gap. This is especially true when their connection to cryptocurrency is taken into account.
Finally, while NFTs can act as a way for users to interact with metaverses, they could also be the medium through which they do so. One of the most important features of metavers is that users use a virtual avatar to interact with the universe (much like a player would use a character to interact with a gaming platform). In reality, this too can be an NFT.
Take VAIL VR, an NFT-based game VR developed by the AEXLAB that works through the users buying VAILIENS, NFT pets within the game. Through these pets, users can participate in fights, challenges, races , etc. Owning the VAILIENS also offers a number of benefits, such as access to VAIL VR Alpha and Beta tests.
According to Jonathan Ovadia, the CEO of AEXLAB, the idea of making the characters themselves NFTs cuts to the core of the company’s mission to normalize their use.
At AEXLAB, we dream that there should be a deeper alignment between the VR and cryptocurrency families. That is why we have announced the drop of VAILIENS. They will be pet-friends of our VAIL world players.
VAIL has already moved from a competitive multiplayer FPS to a social platform, where players can interact with each other and even create events. VAILIEN ownership can give the opportunity for a player to become part of a member NFT-holders club, which is even more exciting” – says Jonathan.
Metaverse NFT
With the Metaverse being the name on all languages and Facebook announcing a change in the name of its parent company, it looks like we’ll all be connected to the Metaverse going forward. This emergence of Web 3 provides a prime opportunity for NFTs to see increased use among consumers.
From acting as virtual access codes to being a medium of exchange within these universes, NFTs are here to stay in the metaverse.
