New Delhi | Jagran Business Desk: Cryptocurrencies have been around for nearly a decade, but they have gained more popularity in recent times. Similarly, non-fungible tokens (NFTs) have also exploded on the internet over the last couple of years. However, with the emergence of the metaverse, many of us are curious about the future of cryptocurrencies and NFTs and what they will have in the future.
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Let us try to understand these terms first:
Cryptocurrency:
Also known as crypto, a cryptocurrency is a digital or virtual currency that acts as a medium of exchange through a computer network. A cryptocurrency can’t be touched and is secured by cryptography. Cryptocurrencies are not dependent on a bank or a government of a country and are stored in an online wallet, which is based on computer algorithms.
NFT:
NFTs are digital items that can be bought and sold with help of the blockchain technology. A photo, video, GIF, any form of art or even a tweet can be stored as an NFT. They are stored in blockchain, a digital ledger. NFTs’ ownerships are also recorded in a blockchain, which can be transferred from one owner to another.
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Metaverse:
A metaverse is an online three-dimensional universe in which virtual and augmented realities are mixed “to create a simulated digital environment at its most basic level”. The term metaverse was first coined in 1992 by Neal Stephenson in his sci-fi novel Snow Crash.
Cryptocurrencies and Metaverse:
For most users, the concepts of cryptocurrencies and metaverse seem to go hand-in-hand. However, by now, you might have understood that these two terms are quite different.
However, that doesn’t mean that cryptocurrencies and metaverse aren’t related. Cryptocurrencies, which are currently used by most of us for investments, can be used for making payments in the metaverse. According to experts, a metaverse will have its own cryptocurrency that will be used by people for shopping, trading, and other marketing activities in that augmented reality.
Metaverse and NFT:
Experts believe that NFTs are crucial for the metaverse and will allow people in augmented reality to buy virtual goods and make an investment. They can invest in real estate and buy regular essentials in the metaverse using the NFTs, feel experts.
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“NFTs are built on blockchain technology that gives rightful ownership to the NFT holders. So for instance, if you own a land in the metaverse (which is quite possible), you get an NFT as deed to the virtual property,” Lokesh Rao, co-founder of Trace Network Labs, said while writing for The Financial Express.
“This means you are the rightful owner and only you have exclusive access to enter the location in metaverse alongside allowing access to others. NFT-controlled access could also help in ensuring VIP access to the events in metaverse,” Rao added.
