The metaverse is a collection of online 3D virtual worlds that allow people to play games, socialize, and work, that is, the metaverse is a conceptual idea that refers to the Internet's support for persistent online 3D virtual environments through the use of standard desktop computers and virtual reality headsets. We can see some restricted implemented forms of Metaverse in some video games like Second Life.
In October 2021, Facebook changed its name to Meta, which is a nod to its intention to build its digital world platform, thereby soaring interest in Metaverse. One popular and decentralized platform called Decentraland uses decentralized crypto technology to enable users to buy and build their virtual plots of land. It works seamlessly through blockchain technology.
A piece of land on Decentraland sold for $2.4 million. It's the latest example of digital real estate being bought by fans. According to Bank of America Merrill Lynch's Israel, the metaverse will see people start using cryptocurrencies more frequently for transactions. The bank's country manager said that the decentralized nature of metaverses will allow people to transact without intermediaries.
Similarly, Nonfungible tokens are digital assets that can be used to purchase anything from music to a website. NFTs are secure and tamper-resistant. Non-fungible because it is the difference between something that’s already been printed and something that can be replaced with another. NFTs are designed to give people ownership of the work, though the artist retains the right to reproduce and sell them. This is similar to physical art collecting.
Applications of Metaverse
The metaverse is a term that refers to the digital world that people can experience through 3D technology. Instead of just staring at a 2D screen, people can interact with it through virtual worlds. The concept of the metaverse was already well established before Zuckerberg announced that it would be a part of Facebook. It’s been around since 1992 and the business applications for it have been around for a long time. Below are some practical applications of the metaverse in real life.
Decentralized Finance: During the pandemic, an increased interest in cryptocurrencies and NFTs have emerged. This will allow users to transact easily and confidently in virtual worlds, through the Metaverse. Flashing, loaning and transacting of these assets will rise as the metaverse world is priming the gaming world for payments that rely on crypto assets and NFTs. That is, due to the rise of NFTs, digital art galleries have started to become an integral part of virtual worlds (metaverse). These new platforms allow users to shop for art in digital form.
Sales Marketing: From a sales perspective, Burns said she loves being able to connect with her clients discreetly. “Now they’re able to connect with me in a way that no other salespeople are spending with them.” She continued. Also, Kyle Dulay, the co-founder of Collabstr Ventures, sees the rise of the metaverse as changing how companies spend their marketing dollars. Advertising spending may be more distributed among independents, instead of being focused on platforms such as Facebook, according to a leading media analyst.
Human Resource: In terms of industrial technology, companies like Boeing and Hewlett-Packard are using AR and virtual reality to improve the efficiency and effectiveness of their assembly processes. This is exploding when one considers the potentials of the metaverse.
Legal: The concept of the metaverse has a potentially profound impact on how businesses transacted. In an interview with BIV, Jack Newton, CEO of Burnaby legal-technology firm Themis Solutions Inc. (Clio), explained that the metaverse's wider adoption will likely lead to zero need for client meetings in the future.
E-commerce: Ventana, a platform that enables digital businesses to develop 3D and augmented reality e-commerce, said that its technology saves companies a huge amount of money and helps minimize their carbon footprint. This is ushering in new gameplay in electronic commerce and will surely be a gamechanger in the near future
Applications of NFTs
It is pertinent to point out that NFTs are not the same as cryptocurrencies. They have a unique set of characteristics and are not as decentralized as their counterparts. Non-fungible tokens have at least one property or characteristic that makes them different from traditional cryptocurrencies. NFTs are becoming more prevalent in various industries. Some of these include the digital art world, finance, and gaming, and below are some practical applications of it.
In Gaming: NFTs are digital tokens that are used to create in-game items that are not tied to any specific game or franchise. This is a great benefit for gamers. A similar game would involve players collecting virtual coins as they progress in the game. After reaching the goal, they can sell the in-game coins they accumulated for a profit.
In Ticketing: Non-fungible tokens are also used in the ticket industry. These tokens can be used to represent tickets for events such as concerts and sports. Due to its non-duplicating ability, this will bring an element of ultimate security to this industry.
In Real Estate: In the real estate industry, land or any property can be represented on a blockchain using an NFT. This means that a piece of land can have various attributes, such as price, location, and measurement. This will eradicate the possibility of malicious people trying to temper with housing documents
In synopsis: Metaverse is the world, NFTs provide the token units that will be used in this world. These two go in-hand-hand as far as blockchain technology goes. Just like the internet and social media apps, their possibilities are endless and it can be said that we are just scratching the surface.