[Op-Ed] NFTs might have more use cases in a “Metaverse” compared to real life
Thanks to the internet, any information is widely accessible around the globe these days. Interests over a topic pick up momentum and traction much quicker than before. This acceleration is only expected to be fast tracked as we achieve more computational power. Brand new technology is getting introduced every single day and the existing ones are getting better. Aspects of our identities are already interconnected to our online personas. All of these leads to only one path, a fully immersive digital world as known as metaverse where we can have a unique piece of our identity placed on that plane of reality as avatars of ourselves.
However, whenever the topic of metaverse is brought up to the light, everyone tends to get stuck around same few discussions such as the experience, quality of graphics, VR or AR, etc. But, we often forget to address a crucial piece of the puzzle, “Economy”. Reality is doesn’t matter it’s digital or real world, a balanced and working economy to function properly. In the digital metaverse almost everything is possible to replicate from our real life economies. Except some and among those, “Ownership” seems to be the hardest. Because in real life we have comprehensive systems in place to validate and protect ownership of any asset. But in a digital world, where everything is just bytes of data, everything can be copied exactly by theory. So, How do we we even justify ownership for such products?
The most effective option is Non Fungible Tokens (NFT). Since people are super hyped up about NFTs, there are efforts to integrate the use of NFTs in real life. This will be a great edition to our existing systems. However, NFTs will be more valuable in a metaverse where this might be the only option to validate the ownership of the virtual assets. NFTs will be able to authenticate ownership since the creation of a digital assets, can transfer ownership in a mere matter of seconds & prevent duplications of the asset.
There are multiple blockchains being used for NFTs, however Ethereum is considered as a standard for now. Ethereum has two major types of NFT blockchains, ERC721 — capable of handling only non fungible assets & ERC1155 —capable of handling both fungible and non fungible assets. There are also platforms like OpenSea, where you can sell your assets as you wish. It is possible to sell for a fix price, auction or a bundle deal. The seller can also set up a lifetime royalty fee for every resell of the asset, ensuring recognition of the creators efforts. NFTs came to the limelight through digital art, but nowadays, it is being used for all sorts of things such as:- game items, virtual real estate, music tracks, domain names, business ideas & many more.
Besides the infinite possibilities, there are also concerns to be addressed for mainstream adoption of NFTs. The Gas fee (transaction fee) actually fluctuates a lot depending on the traffic. Also since we are in the earlier phase of adoption the fee is still very high and not very cost effective for mainstream adoption, therefore, these issues needs to be tackled if the technology is here to stay for the long term. We just have to wait and see how the future unfolds.
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