How are Developers Planning to Synchronize NFTs in the Metaverses?
Most times, people tend to assume that NFTs and the metaverse are similar. It can be attributed to both being quite popular in the blockchain gaming industry. However, NFTs can be defined as a unique digital representation of physical assets, while the metaverse is a blockchain-based digital environment.
Despite being different, the combination of digital avatars and real-life identities presents new opportunities for defining access to the metaverse using NFTs. Hence, several new projects have emerged in the past year focused on addressing the intersection of NFTs and the metaverse. These projects, such as Axie Infinity and Decentraland, are trying to introduce new approaches to online interaction.
Fashion Related NFTs
Communication spaces in VR are already thriving and are serving as high-yielding trading grounds for NFTs. Links and previews are readily available on the web.
NFTs in the fashion world are among the latest entrants in the growing metaverse ecosystem. These are digitized accessories worn by digital representatives.
Prominent brands such as Gucci and Louis Vuitton launched limited-edition fashion items as NFTs.Burberry created NFT accessories for the Blankos Block Party video game. Nike is dipping its toes with its virtual "Nikeland."
Art Gallery
VR is among the best platforms for viewing art. Prices are pre-set and are non-negotiable, and the assets are all of the same category - art compositions.
Museums are placing NFT artwork powered by the Ethereum blockchain in the metaverse. Crypto Voxels hosts art galleries and museums.
Virtual Real Estate
In the physical world, Real estate is pretty lucrative. The same applies to the metaverse. Investors sell Digital land and territories partially or entirely for user development.
Buyers can hold enough plots of land, creating a single estate, e.g., “The Secrets of Satoshi’s Tea Garden” – an estate of 64 parcels on Decentraland. As in the real world, proximity to entry points or virtual arenas with the potential for virtual foot traffic increases the property’s value. In virtual real estate, NFTs serve as title deeds whereby they give the owner exclusive access to the land.
Renting and Lending
Depending on market demand, Landowners can also earn through leasing out NFTs in the metaverse through PARSIQ’s IQ Protocol, a decentralized finance (DeFi) platform. Digital landowners make yield and rent fees with the help of the IQ protocol through pre-established conditions negotiated with renters and enforced by smart contracts.
Residual Dividends
Like the royalties, creators earn on NFT sales, or when their items surface on secondary markets. NFTs holders can also reap profits from dividends. An example is a digital Monaco racing track segment in the F1 Delta Time game represented by an NFT, which allows the owner to earn 5% dividends from all races and entry ticket fees for races and yields from “Elite Events.”
NFTs and Gaming
Banking on NFTs, players can participate in in-game financial economies in the metaverse and get rewarded for the value addition, earning as they play. Rewards include NFTs, and in-game virtual currencies. The digital assets can either be sold, swapped, or borrowed. With Play-to-earn games, players own their assets without being subject to control by a single game entity.
Play-to-earn gaming guilds facilitate intermediaries by purchasing in-game NFT resources, including land and assets. They then lend them out to players for use in the virtual worlds of their convenience to earn returns.
For example, in Yield Guild Games (YGG), a community contributes to the virtual worlds to collect in-world rewards, creating revenue through the rental or sale of YGG-owned assets for a profit.
Avatars: Extensions of Identity, Community, And Social Experiences
With Twitter's recent support of NFT profile pictures, NFTs give identity, social credit, status, and a sense of belonging, allowing communities to share experiences and create content.
Possessing NFT assets can indicate a user’s support of a project or communicate viewpoints about the virtual and real-world—like-thinking users holding such NFTs band into communities with common goals.
Gutter Cat Gang, a collection of NFTs, recently joined forces with Virtual Reality Studio House of Kibaa. The two tech-savvy entities plan to create animated 3D avatars available for all Gutter species, qualifying the community for exclusive raffles for free upgrades within the House of Kibaa metaverse.
NFT avatars represent a user's real or imagined self and are access tokens to enter and shift between locations within the metaverse. They are an extension of our existent identities, where we have full possession and are at liberty to imagine and create our avatars.
Private Events and Parties
Exclusive parties with NFT-associated entrance fees justify the role of NFTs as value carriers and a bridge between the digital and the natural worlds. NFT-controlled access spans an array of use cases, such as access to real-life events and those within the metaverse. Other uses include airdropping branded merchandise or allowing special access to fan-only content.
NFT passes generate revenue for virtual events, parties, and concerts hosted in different metaverses. Snoop Dog is among influencers who have released NFT-centric events and releases on The Sandbox.
NFT Investing
NFT buyers can earn passive yields and maximize their investments potential.
Yield-generating NFTs:
Issuing governance tokens: Governance tokens are cryptocurrencies representing voting power on a blockchain project. They represent the primary utility token of DeFi protocols. They distribute powers and rights to users via tokens and can be used to vote on decisions influencing an ecosystem.
Staking:
Staking is the holding of digital assets to receive rewards. NFTs and DeFi protocols are another way to earn money. These rewards are tokens specific to the project used for standard features such as governance or voting rights. Tokens listed on decentralized exchanges like SushiSwap or Uniswap are tradeable.
Nested NFTs:
Previously, NFTs were invariable and couldn't change minted assets or those bought in a secondary market. However, networks like Charged Particles have created NFT layering mechanisms, pegging NFTs onto other NFTs. It has also created technologies allowing holders to transform their NFTs into virtual wallets or baskets that can store ERC-based virtual currencies.
The Future
The future for NFTs and the metaverse looks like a promising one with limitless possibilities. When both technologies come into play and their use is integrated, it could lead to new social and even economic opportunities. As for mainstream players, we could see more large companies exploring and investing in the world of metaverses and NFTs. As of now, despite the wide variety of NFTs available, there are still only a handful of companies that have built real solutions for the metaverse. However, this could change in the future.