How do NFTs work Within the Metaverse?

NFTs and the Metaverse go together like peanut butter and jelly. 

With the rise of NFTs every passing day, non-fungible tokens are becoming more ubiquitous in digital lifestyles, to the point where eventually, they’ll become synonymous with the metaverse. The metaverse combines multiple elements of technology, such as virtual reality, augmented reality, and life within a digital universe.

In-game NFTs are currently some of the highest demanded ones, with many NFTs being sold by the time the actual drop rolled around. The play-to-earn gaming model is another approach that helps empower players of games present in the blockchain. 

Yield Guild Games (YGG) is one example of NFTs being the gateway for the metaverse, allowing participants to build a global community who contribute to the virtual worlds for metaverse rewards. They can produce revenue through the sale of YGG’s assets for a profit or through renting them.

Another of the major benefits of the metaverse is how businesses and users can port real-life services and assets into the virtual environment, such as real estate. NFTs even allow users to own virtual lands and holdings in the metaverse. The blockchain serves as a support network for users to prove ownership of the asset, allowing them to develop digital real estate within the virtual realm. Just like in real life, digital landlords can sell the land for profit, rent it for passive income or use it to build structures on top of them.

NFTs are also big on the metaverse because they have an important role in defining identity for its denizens. If you purchase a specific NFT, such as Adidas’ recent purchase of Bored Ape Yacht Club’s Indigo Hertz, you’re showing support for a project and sharing your perspective on the real world too.  In the Metaverse, NFTs such as that of CloneX will be optimized as avatars for those who live within. NFT avatars are a digital version of the player’s imagined self. They can also be customized to look alike just like the owner does in real life.

Players employ NFT avatars to access tokens and travel within the locations of the metaverse. Owning an avatar provides the user with a digital membership to exclusive experiences both in and out of the metaverse.

The Cryptopunks collections are another such example of exclusive, identity-molding avatars.

What makes the metaverse interesting is how these in-world assets have real-life value, as people can trade their NFT assets and virtual currency on Marketplaces like Binance NFT. The economic value of these NFTs is measured by their use in specific modules of the metaverse, allowing users the freedom to select the type of content they want to generate.

This is what’s known as DeFi or decentralized finance, and soon it will also translate into decentralized gaming.

While the metaverse is still in its baby stages of development, it has already shown endless potential for the social, political, and economical development of decentralized finance. It won’t be long before we have to purchase virtual lands on top of physical ones in the real world!