NFT is the basis of the metaverse economy

Started by JSImediaJS123, Aug 02, 2022, 04:37 AM

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It happened. Facebook changed its name to Meta and focused on creating a metaverse - a virtual space in which users will communicate, learn, play and do all that is normal life plus what is probable only in virtual reality.
I think that this event will be a breakthrough time in the development of XR technology, especially given the growing interest in this area among developers and companies. But there is another area that is at the intersection of IT, finance and art and is related to the subject of metauniverses - NFT. This article will be about it.

There is a possibility that it is NFT that will become the basis of the economy in the metaverses, including the metaverse of Mark Zuckerberg (Metaverse). Why is it so?

Firstly, in the metaverse, we will need to constantly check ownership of our avatars' clothes and artifacts, virtual real estate, tickets to events, and more. And NFT, thanks to the ability to create unique tokens and the transparency of transactions in the blockchain, fits perfectly when it comes to registering ownership of an object. Now info about the owner is indicated in the metadata of the token, and in order to find out who owns the token, you need to find the token on the website and look at the metadata, an example of metadata is in the image below. Of course, it will be necessary to simplify the process of viewing the owner of a digital object, but these are already nuances.

Second point is business. The Metaverse, in many ways, will develop due to entrepreneurs providing services, creating content and doing many things useful for the Metaworld. And for entrepreneurs, the most important thing is to monetize their services as efficiently as possible. And here again, non-fungible tokens come to the rescue. So, for instance, a psychologist can issue a token that gives ownership of an hour-long session, an online cinema will issue tokens for the right to watch movies for a certain period. Also, tokens can be a pass to a private club, to an event or to another planet (what do you think, Elon Musk?). By purchasing an NFT, you can become the owner of a virtual piece of land, build virtual real estate on it, create an NFT for this real estate and rent it out, earning quite real money.

But why can't it all be done the old fashioned way, why all your energy?

NFTs are created using smart contracts. A smart contract is a program that executes agreements concluded between two or more parties, as a result of which, when certain conditions are met, certain actions occur. That is, when a previously programmed condition is triggered, the smart contract automatically executes the corresponding agreement. That is, when a deal is executed in the format of a smart contract, it will not be probable to collect funds and run away without fulfilling the conditions. At the same time, in order to receive a service, for example, to rent a property, you do not need to interact with anyone. It is enough just to purchase a token, the smart contract will do the rest of the work.

A smart contract is developed in a special language (Solidity, Serpent or Mutan), compiled into the EVM and, with some exceptions, complies with a certain standard (ERC-20, ERC721, ERC1155, etc.). Solidity is a language based on JS, Python and C++.

Standards are one of the ingredients that make non-fungible tokens very powerful. They give developers assurance that the assets will behave in a certain way, and also define how to interact with the underlying functionality of the assets.

Among other things, NFT is a very safe thing. Firstly, the blockchain itself has excellent security parameters - cryptographic algorithms for verifying transactions, hashing when creating new blocks, decentralization. But the NFT metadata storage mechanisms themselves can be organized very securely - they are stored either in the blockchain or in the Interplanetary File System (IPFS) - a peer-to-peer file storage system. That is, the names of the owners of the asset and other metadata cannot be changed in a fraudulent way, the blockchain will remember everything.

Now NFT is the mechanism that is of the greatest interest to crypto enthusiasts and collectors, and the metaverse is of interest to adherents of phygital technologies. But the world is changing and the presentation of Facebook Connect once again reminds us that the era of the metaverse is coming, in which blockchain and NFT will play a very important role.


Why will it be necessary ? Can't the metaverse be built by other principles? It is obvious that the virtual world does not have the limitations of the real one. Virtual resources are not limited, why do we need property in the digital world?
Let's say it's a game element. But after all, games already have property and artifacts, etc., owned by players, and all this did and does without any blockchain.

This is often talked about, but even the history of the ether began with a hаcking of the blockchain and the withdrawal of a huge amount. And such stories are repeated frequently.
Why is a secure blockchain so vulnerable? Or is it all about completion errors? It seems that there were no such high-profile scandals in bitcoin.


It looks like some kind of utopia. By the way, Bill Gates himself spoke negatively about the NFT.

Whatever secure transactions are, the virtual world is a world of freaks, but not like most sane people. :-*

The NFT is the same unstable pyramid as most of those invented before it with the aim of enriching itself at the expense of "less nimble" fellow citizens. A huge number of overvalued NFTs, which "hung" with unlucky, although not poor buyers, is proof of this.


an area that exists at the intersection of the concepts of blockchain, Metaverse and NFT.
Many experts consider it even more promising than virtual land (although land now costs from $ 16,000 per plot, and is constantly getting more expensive). There are plenty of games that use NFT. The top ones for earning as of 2022 are Gods Unchained, Axie Infinity, The Sandbox, Alien Worlds, Embersword.

What is the point? The fact that in these games, the most valuable in-game items are NFT. Roughly speaking, a sword for your knight is an NFT.
This means that he is the only one, he cannot be forged and there is an opportunity to sell. To whom? To another player, at an auction, or an NPC character. The proceeds from the sale can be used to develop your own hero (say, buy him another sword) or withdraw to an external wallet and then convert into traditional currency.
The problem with NFT games is that now there are hundreds of fraudulent projects that allow you to inject funds into website, but do not allow them to be withdrawn.
In addition, many games are still raw and either uninteresting in themselves, or not sufficiently developed to demonstrate real commercial potential. Therefore, it makes sense to invest only in top projects.