First of all, let’s get a few things out of the way.
Metaverses are online, three-dimensional virtual spaces. Don’t confuse Meta’s Metaverse project with the general concept. There are many Metaverse projects out there. They are touted as the future of the internet. In these spaces, people could not only play games or socialize, but work and collaborate on projects as well.
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NFTs or Non-Fungible tokens are digital files transferable via blockchain technology. They are non-interchangeable pieces of data and can store images, audio, and video files.
Crypto Tokens are a kind of crypto asset that doesn’t have their own blockchain technology. For example, tokens can run on Ethereum’s blockchain.
So now that the groundwork’s been laid, let’s see where they overlap.
1. Metaverse and NFT
If Metaverse is to end up being a place to work, be creative, and have fun then digital assets will be important. When people create something in the physical world, the expectation is that the product is theirs to handle as they wish – sell, rent, use, give away – whatever.
It can’t be any different for virtual spaces. Inability to assert ownership over digital assets, whether they be 3d models that people equip on their virtual avatars or entire sections of the metaverse that function like games would kill the environment.
Exclusivity is an important factor in item ownership. Owning a limited series item or a unique item is what makes people stand out and show what’s really important to them. Metaverses, much like games, have a way of ensuring that a user can deploy into the virtual space only what they should – what they own. NFTs, running on blockchain tech, are a decentralized way of doing just that.
2. Crypto Tokens and the Metaverse
Metaverses tend to have their own coins which users use to pay for things in the virtual space. The growth of the Metaverse affects the growth of its token which is used to support it.
Crypto tokens link the physical and virtual worlds. They are a way to transfer fiat currency into virtual value. There isn’t much point in building a decentralized environment if all the infrastructure used to support it is centralized. It would be as good as having the Metaverse(s) under central control and having them suffer the same effects that the price of silver did recently.
The growth of a metaverse stokes the growth of its token and vice-versa.
3. Crypto Tokens and NFTs
NFTs are, as their name suggests, a kind of a blockchain token. An important difference between these two is that crypto tokens are fungible, meaning that one SAND equals another – they are perfectly interchangeable. No two NFTs are the same. Each is a distinct, separate piece of digital information with its own (individually fluctuating) value.
The underlying point is that the whole point of NFTs is a decentralized system of secure ownership and value determination. Every member of the network protects asset ownership and the network as such serves to dictate the value of the assets. No central authority has a strong say in these matters.
In so far as that is a consideration – and it is getting to be for very many people lately – crypto tokens are a must to protect asset value from weaknesses of fiat currency. Token transfers are so secure that nor you nor anyone else can take them back, so that gives rise to the importance of double-checking in crypto.
4. Metaverse, NFTs, and Crypto tokens
Taken all together, they are key elements of a decentralized future version of the internet. Metaverse(s) will provide the broader environment while NFTs will be key in filling it with content and motivating people to do so. With enough good financial marketing, Crypto Tokens provide a solid decentralized financial underpinning to the whole system facilitating its operation.
At present, these function separately, but they make for natural bedfellows and we’re already seeing the benefits of the overlap. Whether you are primarily interested in these individual elements or the whole picture they paint, it’s important to keep in mind how they interact and how the growth of one fans the flame of others.
Invest responsibly and keep your ear to the ground for all news related to these three. The complicated environment can seem like a jungle but promising projects are slowly rising to the top. To understand why that is and where the projects might be headed, analyze them in relation to each other. Good luck out there!
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