Role of NFTs in Metaverse
If we talk about the biggest application of blockchain from the past two years, that will be none other than NFTs. New NFT projects are coming up everywhere and every day. In this huge pool of NFTs, people are grabbing a lot of them but they don’t know its full potential.
As of now, people own NFTs but don’t understand their utility other than as an investment. As the metaverse goes on to replace our real world, the role of NFTs is going to change drastically. But before we understand — How NFT is going to play a role in the metaverse? Let’s revisit some terms.
What are NFTs
NFTs or Non Fungible tokens are digital assets that you can trade only through blockchain technology. These assets can be any digital item like images, gifs, audio, video, etc. . They must be non-fungible i.e. unique, unlike crypto tokens that are all the same.
NFTs are valuable because of their uniqueness and due to the popularity of that digital item.
What is Metaverse
Metaverse is a concept of a virtual online space where you can socialize, play, host virtual events and much more through your online Avatar. With the rise of technology and huge investments from tech giants like Meta(previously Facebook), it won’t remain a concept for long. It will become a way we live and we will be spending a huge amount of time in a virtual world.
The first thing we will start to use in these virtual worlds will be NFTs. But why?
Collect And Show Valuable Items
The value of an NFT depends upon its popularity. If you own a famous digital asset you can boast about it because it’s a collectable. In the virtual world, you can do it right in front of other avatars and also collect valuable items for trade.
It is like buying collectable paintings like “Mona Lisa” and then putting them on display. But in this case, the item will be a digital one and the fact that you own it will be ensured by blockchain keeping it secure.
In-game Rewards as NFTs
There are a lot of blockchain-based games coming up that supports P2E. These games are using NFTs as in-game rewards and that lead to two things:
Some games require you to own their NFTs even before entering their virtual world.
In-game NFT rewards become valuable because of their rare nature.
In this way NFTs offer value, security and even entry to some virtual worlds. Without any doubt, it’s an important part of the metaverse.
To understand it even better, let’s take an example.
Aurora dimension is one of the few metaverses that offers P2E. It is a unique virtual world where you can play to earn NFTs. These NFTs are valuable because they are rare and hold value in the real world too.
NFTs is a huge part of this virtual world because everyone wants something to personalize their part of the aurora dimension. The only secure way to own these digital items in a virtual world is NFT because it’s based on blockchain. It is also a good way to show your collectables to others.
A metaverse is a place of huge possibilities and NFTs is an integral part of it. When we will spend most of our time in the virtual world, our NFTs will be even more valuable. And the aurora dimension is going to be one such metaverse.
You can find more details of the project here :