What is the relationship between Metaverse and NFT?

What is the Metaverse

First, what is the metaverse? Let’s start with a review of the place.

Metaverse is a coined word that combines the words meta and universe . To put it simply in Japanese, it is a word used to mean “virtual space”, and since meta (former Facebook) has begun to focus on development, opportunities to hear it have increased in recent years.

The feature of the Metaverse Development Company is that it has an economic zone even though it is a virtual space that exists on the Internet. In addition to being able to interact with others in real time via the Internet, it is also attracting attention as a new business venue because it is linked to the real world.

What are NFTs?

The existence of NFTs cannot be avoided when explaining the Metaverse. NFT is an abbreviation of the word Non-Fungible Token . Literally translated, it means “non-fungible token”.

“Non-fungible tokens” are crypto assets that cannot be replaced . NFT is not for “substitutable items” such as money, free material illustrations, and commercial products, but for non-substitutable items such as autographed books and only one trading card in the world. be utilized.

The biggest advantage of NFTs is the ability to identify the owners of digital assets. Prior to the establishment of NFT technology, it was difficult to clarify the owners of what is called “digital assets” such as items acquired in the game, illustrations, images, and music found online.

Since NFT appeared, it is possible to distinguish whether it is a copy or not. You can now prove that you are the owner of the digital assets you own.

Another advantage is that anyone can use it. Blockchain technology is applied to NFT, but even people without programming skills can create and publish it. Since you can make NFT by simply uploading the created work, you can now announce with confidence that it is your own work even online.

With the advent of NFT, it has become possible to prove that one’s belongings are one’s own, and the scope of utilization of digital assets has expanded dramatically.

Relationship between Metaverse and NFT

NFT, which often appears together with the word “metaverse”. Since both are often used at the same time, many people misunderstand that Metaverse = NFT.

However, the two are completely different. To put it simply, NFTs are entities that expand the possibilities of the Metaverse Development Services, and at the moment they are in a relationship that can only be described as good compatibility .

Earlier, I mentioned that NFT is a technology for clarifying the owner of digital assets, but in the Metaverse there are many opportunities to create digital assets and interact with others. Since the currency in the Metaverse can be linked with the real world currency, it is possible that the demand for NFTs will increase further in the future in order to clarify the ownership of digital assets.

However, it is true that the current Metaverse is not based on NFTs , and can be used with or without NFTs . For the Metaverse, NFTs should be compatible with each other, but the reality is that the relationship has not reached the point where they are essential .

How are NFTs used in the Metaverse?

Metaverse expands its possibilities by combining NFTs. A typical example is the case of NFT conversion of items acquired in the game, works created by yourself, avatars, etc. Metaverse has been a notable entry for the game and entertainment industries, but there are many cases where NFTs are also used in games.

For example, the land and items acquired in the game can be converted into NFTs , and secondary sales can be made at a high price to make a profit. This is a use case that symbolizes the relationship between Metaverse Development solution and NFT. By converting what you have acquired in the game into NFT, you will be able to prove that it belongs to you, so it will be the only digital asset in the world.

Until NFT appeared, items in the game were only valuable within the game. However, since the advent of NFTs and the ability to prove ownership of digital data, in-game items have become a single asset by converting them into NFTs.

In fact, there have been cases where NFT art has been traded for billions of dollars in Japanese yen, and there is no doubt that the emergence of NFTs has made the Metaverse a place of great business opportunities.

The Sandbox
The Sandbox is an “NFT game” that allows users to play games created by users on the Metaverse and enjoy communication between users.

On The Sandbox, you can buy and sell land called LAND , avatars, materials and items necessary for making games. These digital assets can be traded on the NFT marketplace and in-game markets.

In particular, LAND is considered to have a high rarity value, so secondary sales at a high price are possible.

Decentraland
Decentraland was developed by the Decentraland Foundation, a non-profit organization based in California . As a virtual platform that utilizes blockchain technology, it is supported by those who are trying to make money within the Metaverse.

At the moment, many metaverse projects are still in the concept stage, but Decentraland can already experience the metaverse. One of the features of Decentraland is that it has a wide variety of creator functions , such as making it easy for people with no game development experience to create games .

Since Decentraland is a well-known organization among companies interested in Metaverse, it has also attracted attention from major global companies such as Coca-Cola and JP Morgan. Collaboration with various companies has also been realized, and hot eyes are sent to the movement in the future.

summary

NFT is a presence that expands the possibilities of the Metaverse. The value of digital assets will continue to rise in the future, but it is undeniably NFTs that have given value to digital data.

Rising expectations for the Metaverse Application Development Services means that NFTs will receive more attention. It is expected that more companies will start developing the Metaverse in their business in the future, but in order to use the Metaverse successfully, it is necessary to accumulate knowledge about NFTs.

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