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Can the Metaverse Survive Without NFTs? – crypto.news

Meta Studio and Polygon Studios Team Up to Develop a Metaverse Platform for Creators

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The metaverse manifests as a futuristic, expansive digital space that utilizes web3 tools to provide participants with an immersive virtual experience. It establishes decentralized finance (DeFi) projects in the metaverse, which require a way to store and transfer value between users. Facilitating the exchange of such values ​​is possible with the help of non-fungible tokens (NFTs), which represent earthly valuables in the digital arena. This paper explores the importance of NFTs for innovative metaverse projects to determine whether they can operate without unique tokens.

Starting new metaverse projects requires imitating what real-life people do in certain fields and copying them in a virtual configuration. Representing physical resources in digital spaces requires the creation of avatars and NFTs that take the form of said objects. Such entities have some roles in the metaverse, including:

Value storage

NFTs are a smart invention that helps users store valuables in a digital space where engagement involves trading. Users acquire such items in their wallets by purchasing from preferred exchanges, after which they can use them for other desired values.

Real world wealth

Tokenized NFTs are becoming popular tools for keeping digital wealth traceable to real-world objects that users can retrieve at will. For example, a certain number of NFT cards with gold held in a blockchain digital wallet means one gold in a bank vault somewhere. The user can sell the NFTs and go to the bank to redeem their equivalent value for other uses of the gold bars.

Safe trading

Due to the uniqueness of each piece of NFT, a digital wallet can only hold one genuine piece at a time. This feature and the traceability of all blockchain transactions ensure that investors receive maximum protection against fraud.

Despite the initial popularity of metaverses as a space for realistic gaming experiences for players, the platform now offers new possibilities. Attempts to bring it on par with people’s actual physical experiences increased the creation of social elements. Thus, the space is now favorable for a metaversal creator economy where every user wants to experience financial benefits with the resources available. NFT has a defined role in the virtual world.

Author royalties

The economy is heavily dependent on creators accepting bids worth their NFT bids and then receiving additional royalties for each piece sold in subsequent trades. Such features deliver maximum value for any ad that models the best digital assets with the underlying physical assets.

Decentralized financing

NFTs are a key part of DeFi ecosystems created by teams that intend to exploit user-based projects. The current wave of real estate NFTs, which uniquely represent physical land on which people can trade in metaverses, shows the potential of the platforms. The ability of authors and copyright owners to define the rules of exchange for their assets creates a platform for a decentralized system that ensures self-fulfillment.

Web3 fever

The final transition of Internet services to a Web 3.0 solution defines an interesting era in the interaction between physical and virtual reality. The need for decentralized autonomous organizations (DAOs) and other projects operating in cooperative ecosystems increases the importance of NFTs. They meet the security requirements, value exchange potential and efficiency that the new Internet arrangement aims to stamp on people’s online experiences.

A metaverse without NFTs will suffer from investor boycotts because there are no attractive means like a metaverse to incentivize content creators. Forecasts predicted that web3 would aim for a complete takeover of the Internet, revolutionizing the digital economy to an unparalleled level. Consequently, projects that do not adopt a blockchain infrastructure that prioritizes user interests will struggle to survive. In particular, the metaverse shrinks and fails for two reasons:

Less attractive companies that do not require NFT

The platform is only profitable for gaming and social projects where avatars participate without an exchange of value tied to physical elements. However, the world is now a money-driven society where people’s primary concern is to generate value from the time spent on any platform. Eventually, the metaverse loses its luster and becomes a place where bored people can spend a few hours instead of investing their digital assets.

Beat the Metaverse objectives

The metaverse exists to replicate human existence in a virtual version of Earth where geography ceases to limit their engagement. NFTs provide proof of ownership and are eligible for genuine trades, where the user’s assets have the same level of protection as through government agencies that oversee market operations. Therefore, removing the same persons’ opportunities for a safe product and service exchange is catastrophic for the spirit of the project.

Conclusion

The impeccable role of NFTs in the metaverse shows how such elements are a timely asset to its development. The first use of the digital arena for gamers and movie buffs is waning as the interest of financially driven entities increases. Thus, it is fair to say that the metaverse is more than ever dependent on the emergence of innovative NFT projects to help it reach its full potential. Not implementing more secure exchange of value NFT projects limits its appeal and excludes it from futuristic projects competing for supremacy in web3.

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