If you have an interest in the worlds of technology, gaming, and crypto, you may have learned something about the Metaverse long ago, and we’re sure you’re familiar with the term. Ever since Facebook shared with the public its plans to build a Metaverse universe and changed its name to ”Meta”, all eyes are on this new tech.
It is not possible to understand the impact of virtual products and NFTs on these platforms without understanding the Metaverse, which refers to digitally-available public spaces that create their own reality with the collaboration of their users. That’s why we first touched on what the Metaverse is, then we talked about how NFTs are used in the Metaverse and how businesses can benefit from virtual products and NFTs in the metaverse.
KEY TAKEAWAYS
- Metaverse is a technology that will create new spaces that can be shared and publicly accessed, built on a digital atmosphere. This technology needs digitized objects to be used in its ecosystem: NFTs.
- NFTs can be used as collectibles in different metaverse universes that consumers are in, they can be objects that customize their avatar, or they can be used for trading.
- The Blockchain world is the cornerstone of the metaverse technology with the encryption technologies and non-fungible tokens (NFTs) it offers.
Table of Contents
What Exactly Is This Famous Metaverse Term That’s Always Used?
Metaverse, which refers to digital platforms focused on virtual and augmented reality and adapted to both the technology of the present and the technological developments that may occur in the future, is characterized as the next frontier of the internet. Metaverse, which is seen as an important business opportunity both for companies in the technology field and for companies in other fields, is also considered a set of virtual platforms that can provide financial support to many companies by transforming their services and products into digitally available objects.
So how far can this go?
According to what social media and technology companies constantly tell, virtual reality glasses and headsets, smartphones, and smart devices will be used to be included in the metaverse. After the necessary devices are used, users will be able to work on the metaverse platform, connect with their friends, and be included in this three-dimensional virtual and augmented reality platform. In addition, thanks to the metaverse, it will be possible for people to work, do business, visit distant places, and receive an education.
Let’s definitely mention that the Metaverse is not just an experience, but actually a bunch of experiences: because there is more than one Metaverse universe. Furthermore, with NFTs, play2earn games, and digital public spaces, Metaverse users will not benefit from a given service but will have customizable lives within which they manage their own actions. For example, by using virtual reality glasses, you will be able to participate in a virtual reality multiplayer game of unprecedented size. Or you can create your own digital game on metaverse gaming environments.
Since Metaverse is a technology that is used in many fields and attracts attention from many sectors, it would be a mistake to expect this technology to exist in a single digital field. This technology can transform fields such as commerce, tourism, entertainment, and education. For example, if you want to see the house before buying it but have no time for going kilometers, your real estate agent can give you a virtual tour of the house using the metaverse. It is also possible for you to work with your colleagues just like you are in your everyday office without even leaving the house.
Is Metaverse Being Used Today?
We mentioned that the metaverse makes people’s experiences more realistic and that the areas that this tech to be applied are almost unlimited. Considering that some aspects of Metaverse platforms are integrated into important video games such as Second Life, Minecraft, and Fortnite, we can easily say that Metaverse has already started to take place in our daily lives.
Metaverse, which employs virtual reality tech in a certain way but is not synonymous with virtual reality, creates believable, realistic atmospheres that can appeal to different senses and can be an imitation of the real world. Companies such as Meta or Facebook are investing in social virtual reality to create platforms where people can be socially involved and remotely connected, and strive to make Metaverse more usable.
4 Industries That Will Be Transformed by NFTs & Metaverse
Ok, the vast majority of industries will change with Metaverse. So which ones are the most and how?
Gaming
Earlier in the ”Roblox Metaverse” article, we showed you what decentralized gaming ecosystems can do. In this type of game ecosystem, users create 3D avatars with the help of NFTs. These avatars not only create completely unique identities but also start a financial value as NFTs in that ecosystem and become tradable.
Besides 3D avatars, in-game ecosystems users can build games, buildings, and similar fields that build their own financial values and earn money for users.
Explore More: Gaming and Metaverse
Media and Entertainment Sector
What comes to mind when you say entertainment industry? Concerts, movies or theaters, of course, right?
Today, famous artists can perform their concerts in the Metaverse environment, and they sell the rights of their songs or clips as NFT in Metaverse universes. For example, artists such as Imagine Dragons and Ariana Grande organized concerts in a virtual environment, moreover, during the COVID-19 period. In addition, painting or photography artists can tokenize the products they sell physically and sell them in Metaverse environments. You can hang your favorite artist’s work on the wall of the house you built in a Metaverse universe.
Real Estate and Architecture
Architectural projects, prototypes in the R&D phase, or physical real estate objects that are digitized to be easily marketed in the virtual environment. Yes, the real estate and architecture industry is also changing directly with the metaverse.
The emergence of the Metaverse and the power of virtual reality technologies can make it easier for engineers, architects, and manufacturers to work on collaborative projects. Creating prototypes, presenting them to customers before proceeding to production processes, and building living spaces that can be explored completely in a virtual environment will also change the working areas of real estate agents.
The vast majority of real estate in the Metaverse world today is owned by just four companies: Decentraland, Sandbox, Upland, Somnium Space, and Cryptovoxels. But remember, the point is not only to create real estate spaces in the digital environment but also to build an imitation of physical cities in the metaverse world.
Today there is even a real estate company that buys and sells Metaverse Properties.
Retail Market and Marketing & Advertising
Objects sold in the eCommerce world can be marketed as NFTs in the Metaverse universes. Imagine a Gucci bag that has no real (physical) equivalent, bought as NFT as it can only be used in the Metaverse universe.
Moreover, all of the objects sold in the eCommerce world can be marketed more easily by product placement in the Metaverse world. For example, did you know that custom namespaces are sold on the Cryptovoxels platform specifically for NFT related projects?
For example, did you know that custom namespaces are sold on the Cryptovoxels platform specifically for NFT related projects? Ocean Outdoor customers will be able to advertise in video games and on digital billboards in the metaverse, after forming a partnership with in-game advertising company Admix. Ocean Outdoor customers, for example, have partnered with Admix to enable in-game advertisements. In this way, customers will be able to advertise in video games and on digital billboards in the metaverse.
How Will NFT Uses Be in Metaverse?
Although Metaverse and NFT, which are new concepts from each other, are located in completely different environments, many technology companies have found the most creative and useful ways to combine NFT and Metaverse. Let’s examine together how NFTs can be used in the Metaverse.
| NFTs Can Contribute to Virtual Marketplace Creation in the Metaverse | By looking at VRChat and similar applications, which are important chat applications in the field of virtual reality, we can easily observe that the communication areas in virtual reality are developing day by day. NFTs that can be used for important chat applications can create a marketplace within the Metaverse. People who produce or buy NFT assets from producers and sell them again will be able to provide some easily accessible URL links or previews to the assets in the internet environment or virtual reality environment. Metaverse and NFT markets, which are different aspects of virtual reality, will be able to appeal to different brands in many sectors. To give an example, he can take Nike. Nike, which is included in the Metaverse platforms, has produced its own virtual Nikeland platform and has already purchased a studio to produce NFT versions of its products. In the future, we may see NFT versions of Nikeland and Nike branded products meet at Nikeworld, and it wouldn’t be surprising to us. |
| Monitoring NFTs May Be Possible with Virtual Reality and Metaverse. | We wouldn’t be wrong if we say that virtual reality platforms are the best platforms that can be used to better examine and perhaps watch the arts. You can examine every detail of the art products produced and see the products with a close look from the angle you want. We can say that NFT products on virtual reality platforms will be different from an ordinary art market because the prices of NFTs are predetermined by the manufacturers and it is not possible to negotiate on these products. In addition, since all products are of one type, the atmosphere of art auctions is more comfortable on virtual reality platforms. Many platforms that own NFT artworks incorporate their artworks into metaverse platforms such as Cryptoxovels, which is built on Ethereum blockchain technology. According to a report shared by The Art Newspaper, the Cryptovoxels platform also includes many art galleries and museums around the world, including the San Francisco Museum of Modern Art and FC Francisco Carolinum Linz. |
| Using Virtual Products, The Real Estate Market Can Develop More Than Never Before | The real estate industry, which is a very lucrative field to work in the physical world, can also be lucrative for the Metaverse, contrary to popular belief. Real estates sold through Metaverse platforms are not real homes sold digitally. Metaverse platforms have digital plots and regions customized for user development, these digital plots and regions can be sold in whole or in part. Let’s reinforce this with an example, as it can be difficult to understand how to sell a place that doesn’t really exist. Decentraland, a virtual region where owned lands can be sold in NFT format and almost everything is represented in three dimensions, can qualify as a country. Decentraland has its own cryptocurrency and has stated that it plans to join the Metaverse in 2022. If Decentraland is included in Metaverse platforms in 2022, it will be possible for virtual reality users to be included in this country. |
How Will NFTs Contribute to Businesses in the Metaverse World?
Businesses entering the world of metaverse can generate income by selling virtual products, reaching large audiences thanks to the metaverse, and protecting their physical products against possible copyright threats.
Earn Income by Selling Virtual Items on Metaverse
Virtual products can be a virtual representation of a real product or a product that exists only in the virtual world. Although digital products are not physically real, these products can also be considered real because real people spend real money on them. Many tech companies or gaming companies may have virtual products available, for example, consider buying a high-end Ferrari in a virtual racing simulator. Also, as another example, the benefit of someone wearing an expensive suit in a Metaverse universe is similar to the benefits obtained in real life. Since having virtual products attracts people’s attention, producing and selling virtual products can bring more income to businesses than they could ever imagine.
Reach Large Audiences via Metaverse
Considering how big the video game industry is and even bigger than the sports and movie industries combined, just think how much metaverse platforms can add to you and your company. Imagine how big attention your products get when they appear in a hit movie or feature in a sports broadcast, and imagine your products being found as a downloadable skin in Fortnite, and you’ll definitely reach more people. Even if you have virtual products and you can’t make a fortune by selling these products, as long as you have virtual products and infamous games, the value of your brand will increase like never before and you will be able to start benefiting from this increase in value immediately.
The audiences you get from games or virtual platforms will be quite large and will be completely different from your traditional audience. For example, if you are a company that sells physical products, you can target middle-aged and elderly people, but when you become a company that sells digital products, you cannot target these segments and you will have to target younger audiences. For example, if you wanted to design a digital product in Fortnite and sell this product on this platform, considering that more than half of the users of this game are twenty-four years old or younger, your target audience is moving towards young people from all ages. Roblox, which has key aspects of the Metaverse, appeals to a younger audience, with more than half of its player base younger than sixteen.
Protect Your Ownership Chance of Resale and Duplication
The question that many people are most curious about virtual goods is the question of how a virtual product will retain its value if it is imitated since it is easier to imitate. The problem of counterfeiting and copying is in today’s world, ranging from fine arts to sneakers, and things get complicated because the problem of counterfeiting is even more so in virtual worlds. For example, if you bought a Rolex watch in the physical world and you wonder if this Rolex watch is real, all you have to look at are the materials used and the details of how the product is made. Creating a copy of a product in the virtual world is quite easy, the scarcity of products and their uniqueness must be preserved in order for virtual products to have value. NFTs are used as a solution in case of copying and resale.
Difference Between Fungible Tokens (Coins) and Non-Fungible Tokens (NFTs)
Although blockchain technology seems complex at first glance, considering that blockchain keeps a virtual ownership record for any virtual or digital product, we can easily say that this technology is extremely necessary. The key difference between cryptocurrencies and a physical record of ownership is that coins do not carry information of ownership and have thousands of copies. Furthermore, because they are part of an economy of a network, tokens cannot be altered or destroyed by anyone unless in the case of fork or PoB.
NFTs are also produced and protected by blockchain technology. NFTs do not have any mutable or exchangeable value, meaning they cannot be of equal value to other NFTs. This uniqueness allows NFTs to specify ownership.
Can you use NFTs in the metaverse?
Yes, it is possible to use NFTs in the metaverse. One of the ways you can use NFTs in the Metaverse is to buy land that is a digital piece of real estate, and NFTs are used as title deeds to represent ownership of these virtual spaces.
Are NFT and metaverse the same?
NFTs are tokens that cannot be exchanged, while Metaverse is a virtual reality environment with digital platforms. NFTs are used to characterize many features included in metaverse platforms, for example, NFT can be used to express ownership. Considering their intended use and interactions with each other, we can easily say that NFT and metaverse are not the same things.
What currency is used in Metaverse?
The currency used in Metaverse’s digital platforms is Ether, and this cryptocurrency is the native currency of the Ethereum network. Ether, the most used cryptocurrency, is frequently used for shopping on the Metaverse.
