metaverse

NFT and the dawn of Metaverse

In recent years, along with the development trend of Metaverse, NFTs will play an important role in Metaverses, allowing anyone to fully own digital works, characters, and accumulated items in the game… Besides, cryptocurrencies could become the only currency used in the Metaverse, with all virtual objects and intangibles represented as NFTs. Let’s explore the potential growth of NFT in the dawn of Metaverse!

Non-Fungible Token (NFT) first appeared in 2014, it was a one-off NFT created by Kevin McCoy and Anil Dash, live at the Seven on Seven conference at the New Museum in New York City, however, its strong public awareness started in 2017, when the Ethereum blockchain began gaining prominence over bitcoin based token platforms(1). Today, NFTs have become a hot craze on the internet. These tokens make use of blockchain technology as cryptocurrencies, but they can represent anything, such as artwork, songs, yachts, or real estate “digital twins”. The benefits of NFT have attracted more and more people’s interest, including buyers for several millions of dollars, and we could say that in the market the expectations are rising.

With the appeal of electronic trading, NFTs have become a marvel for every investor. Celebrities, influencers including artists, singers and even sportsmen have been keeping eyes on these tokens and have been moved into the NFT marketplaces. Legendary soccer player Messi has jumped on the NFT bandwagon by launching a NFT crypto art collection under his name – ‘Messiverse’.

Metaverse – The revolution in the Internet of things

The term “metaverse” is not only popular in recent years, in fact, it has initially originated from the science fiction novel “Snow Crash” by Neal Stephenson since 1992. In the novel, people live in a virtual three-dimensional space, where people can interact with each other, through a digital avatar. The author calls that artificial space a “metaverse” that exists parallel to the real world. 

Today, “Metaverse” is defined as a virtual space created from the Internet and augmented reality tools to help us get the most realistic experiences. Literally, truely to the meaning of the word, “meta” is super, incredible; “verse” stands for Universe, it can be said that “meta-verse” means beyond or transcending digital universe. Accordingly, the Metaverse refers to “Beyond Universe” or “Transcending Universe” and it is defined as a fictional universe giving humans another amazing life. 

metaverse-nft
Metaverse” is defined as a virtual space created from the Internet

Miraculously, in recent years, metaverse has been developed and built into a virtual world created from the Internet with the support of augmented reality technologies (such as Virtual Reality – VR, Augmented Reality – AR and blockchain) to create the most authentic experiences for users. It creates a space for users to entertain, trade, transact and even work. The fictional universe in the Metaverse could become a trillion dollar industry. 

Future of metaverse

We can see the digital universe existing in online role-playing games. But, the metaverse won’t just be limited to the game, it will be able to provide virtual workspaces, an “infinity office that allows for better multitasking”. COVID-19 has caused a great impact, where the online workspaces become necessary and beneficial in many aspects. This digital universe, similar to the explosion of the Internet, can be considered as a sort of successor state to the mobile internet and completely provide the impetus to create a new generation of companies – Matthew Ball believes(2).

In that virtual world, developers have almost eliminated all barriers to creativity. Metaverse will change the way we interact with the digital world, providing new opportunities for creatives, digital artists and game developers. This digital universe will be the driving force to create a new generation of interactions and commerce, similar to what happened with the Internet back in the days. C.E.O. of Facebook, Mark Zuckerberg said that metaverse not only brings content, users can have the most realistic experiences that cannot be found on 2D apps or websites(3). These digital universes can be considered as a pinnacle of the internet, where the digital universe exists parallel to the real world and is constantly evolving, connected to our physical life.

Features of Metaverse

The metaverse digital universe consists of the following four characteristics:

  • Sustainability: They have the ability to maintain and continuously create improved or innovative services or ecosystems.
  • Immersion: This is synonymous with the level of realism of the Metaverse, which answers the question of how much the user experience in the Metaverse resembles the real thing.
  • Openness: Openness means that Metaverse allows participants to connect or disconnect at any time. At the same time it must be an open space that allows creativity to become limitless.
  • Economic System: Metaverse is an economic system parallel to reality, in which participants can move their assets between the real world and the online world easily, as well as possibly based on having Breakthrough creative improvements in the metaverse to accumulate and increase assets for yourself.

Besides, a Metaverse might include 4 basic layer layers:

  • Foundation Layer: The foundation for connectivity, which is the Internet.
  • Infrastructure Layer: Regarding the infrastructure for Metaverse, there are hardware components that help users have authentic experiences. In addition, the technologies to form Metaverse are also included in this layer, such as Blockchain, AI (Artificial intelligence), Big Data, VR and AR….
  • Content Layer: On this layer the creators will include games and applications in the Metaverse that help users immerse users in one or more different worlds, for the most vivid experiences.
  • True Metaverse: This is the last layer of the Metaverse, when the lower layers develop to a certain extent, it will create a true Metaverse.

During development, we can see that, when the foundation layers are completed, they will become the foundation for the above layers on which to grow. And during that development, the layers will always be updated as well as continuously developed with the support of new advancements in technologies and Internet.

NFT development in Metaverse 

Metaverse has been built on a variety of technologies, however, in a world that promotes unlimited creativity, interaction, and decentralized freedom like Metaverse, it seems that Blockchain will be one of the key technologies of this world. 

In the metaverve, with its application representing intangible digital assets, NFT will undoubtedly play an important role in the metaverse of games or other metaverse space. It will probably be easier for users to better control their characters to trade virtual goods and items or real-world intangible technical assets (videos, music, tickets…).

When it comes to NFTs in the metaverse, the concept can be confused by the emergence of these new technologies. As a practical example to consider, in a metaverse space, players can go into a virtual mall and purchase a digital outfit in the store to create an avatar of themselves in the virtual world. Their character then enters the fast food restaurant and orders a pizza that will be delivered to his home shortly after via the delivery unit. 

Furthermore, the player attends the concert at the concert center with the ticket purchased previously. Meanwhile, in real life, he can completely listen to the sound from the concert through the Spotify application. The whole process is seamless and data is transferred between the real world and the digital world. Those purchased items can completely exist as NFTs. 

When it comes to NFTs in the metaverse, the concept can be confused by the emergence of these new technologies.

When the Covid pandemic came and it was not possible to meet in person during the time of isolation, the digital universes and NFTs started taking advantage of the opportunity to help users realize their wishes and actions more easily. A real-life painting, piece of land, car or piece of clothing can be brought into the metaverse through the NFT version. The whole process is seamless and data is transferred between the real world and the digital world. Those purchased items can completely exist as NFTs. The decentralized application will allow users to trade virtual goods in the virtual world of the metaverse. NFT creates the opportunity to give users more control and more activities, since then, the liquidity has also significantly increased in the metaverse world.

If the benefits of NFT can easily creep into the lives of consumers, why can’t we imagine a more fantastic future in the metaverse with the ubiquitous presence of NFTs? NFT’s wide range of applications will help each of us to express ourselves and perhaps, that will become increasingly necessary in the virtual world of billions of users. So, in the endless evolution of the metaverse, the NFT will become an important part of what keeps us unique, unmistakable from other users in the digital universe.

About the company

Dandelion Labs is a blockchain product and research agency that leverages the power of blockchain technology to power the next generation of decentralized commerce, paving the way for evolution and connection to the digital world. Stay update with our newest advancements by following us on social media:

References: 

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on email

Leave a Reply

Your email address will not be published. Required fields are marked *