The race to develop the virtual world is really starting to heat up. We have already seen top tech companies such as Microsoft, Nvidia, Meta, and the like join the race to develop the metaverse alongside early pioneers.
The sector received a major boost on Thursday when Meta opened NFT sharing on Instagram and Facebook to all US users. This could be the tipping point for mainstream adoption of NFTs and the beginning of the convergence of NFTs and the metaverse.
We feel confident enough about how things are unfolding to make a few predictions about how the metaverse will emerge in the near term. (See if you agree!)
- The metaverse is no longer about if, it’s about when. There’s already a massive inflow of finance backed by technological advancement to bring the virtual world into reality.
- No single company will govern the metaverse. In fact, the more open and decentralized, the more likely it is to prosper and become widely adopted.
- Gaming in the metaverse will become more intuitive and experimental at a depth never before seen.
- But it’s not just about games and hanging out. The metaverse already promises to create an immersive experience for anyone who wants to experiment with a new landscape to attain that next level of human interaction. Socialization, travel tourism and even health appointments will all take place in the virtual world.
This piece explores how the metaverse will shape and potentially increase the prominence of NFTs in the virtual world.
The metaverse as it is
At the heart of the metaverse are some of the foremost technological innovations that now exist: virtual and augmented reality technologies and blockchain technology. All of these will support the use of digital currencies and non-fungible tokens in various ways.
Virtual reality technology offers the means by which many users will access the virtual world, while blockchain technology will play two prominent roles. First, it will power the digital currencies that will be spent in the metaverse. Second, it will help with the storage of virtual assets such as avatar skins, instruments, and other collectibles that are most easily bought and traded as NFTs.
The metaverse and NFTs
As immersive as the metaverse will become, it is worth noting that the transaction layer will be powered by NFTs. Businesses have already taken successful deep dives into the metaverse along with gaming, health and fitness. Other industries are also making the switch. Adding marketing and R&D dollars into the metaverse mix is the way of the future, so starting to think about how you will enter this space sooner than later.
NFTs will play an integral role amid this expected boom. Starting from the avatars that will represent individual participants in the virtual world to the buildings, relaxation centers, hospitals and fitness centers that will be built, and even the land upon which all of these will be built, will exist in the form of NFTs.
In addition, gaming revenue is expected to see a boom when the metaverse is fully commercialized. This is expected to be driven by the increase in the demand for virtual goods such as in-game characters, tools, skins, and more. On this trajectory, the evolution of the metaverse is expected to contribute to the increased adoption and usage of NFTs.
From all indications, the future of the metaverse and that of NFTs are intertwined. The coming immersion through the metaverse will ultimately serve as the driving force for the commercial adoption of NFTs.