The term Metaverse was first used in Neil Stephenson’s 1992 novel Snow Crash. Broadly speaking, it means a virtual world reminiscent of Ready Player One or games like Roblox or Fortnite.
People can live in the Metaverse via avatars, trading and managing digital assets anchored in a fully functioning real-world economy.
While the details of the Metaverse Development market are still abstract in some areas, the power of NFTs (Non-Fungible Tokens) is increasing as a sort of infrastructure and economic foundation within the Metaverse. People are using NFTs within the Metaverse to purchase digital items such as virtual properties, event tickets, and avatars.
NFTs and real estate investments in the metaverse
virtual landlord
As mentioned above, one of the uses of NFTs within the Metaverse is the purchase of virtual real estate, such as the real estate “LAND” within the game platform “The Sandbox”. In such cases, NFTs are used instead of deeds to represent land ownership in the virtual world.
The Sandbox LAND is approximately 300 square feet (approximately 28 square meters) within the game world. On another platform, Decentraland, each parcel is 50 square feet.
Once users have enough land, they can combine them into a single lot. For example, one user combined 64 plots to create “The Secrets of Satoshi’s Tea Garden” on Decentraland. The land sold for 1.3 million MANA (equivalent to $80,000) in 2019 due to its size and location. It was perfectly surrounded by digital streets and had excellent access.
Virtual real estate company Metaverse Group will purchase land in Decentraland for 618,000 MANA in 2021. At the time, this was worth about $3.2 million. Just like in the physical world, location is everything in digital real estate. Land close to gateways and virtual stadiums to specific areas with high virtual traffic tends to increase in value.
land lease
Depending on market demand, NFTs can be rented out to earn unearned income. Landlords in the Metaverse can rent out their land through PARSIQ’s IQ Protocol, a DeFi platform that provides a way for game developers to generate income.
With the IQ Protocol, just like in traditional real estate, virtual landlords can negotiate with renters to earn rental payments through pre-determined terms executed in smart contracts.
Dividend
Apart from the royalties that go to creators when NFTs are sold or resold on the secondary market, investors can also earn passive dividends. One example is Monaco’s digital circuit in the game F1 Delta Time, which sold for $222,000 in December 2020.
Holders of NFTs representing this circuit will receive a 5% dividend from the proceeds of all races held there, including proceeds from race admission tickets to “Elite Events” where participants are required to stake REVV can receive money.
NFTs and games in the metaverse
P2E game items and rewards
P2E (play-to-earn) models such as Axie Infinity and Tamagotchi-inspired Aavegotchi reward users with in-game crypto assets and NFTs that can be traded, sold or borrowed. Giving is creating a whole new virtual economy.
In addition, games such as Battle Racer have made car parts even more useful by releasing them as separate NFTs. Users can purchase such parts and build their own vehicles or sell them on marketplaces like OpenSea.
It’s still a long way off, but this use of NFTs in a blockchain network could also be applied to skins and cosmetics (elements that change a character’s appearance) in more mainstream games such as Fortnite.
Not only will it allow players to better reflect the ownership and authenticity of the items they own, but it will also help increase in-game spending globally, which is expected to exceed $74.4 billion by 2025. It should be too.
Epic Games, the software developer behind Fortnite, welcomes NFT-enabled games to its store, but says it won’t release or be directly involved in NFTs due to fraud concerns. there is
NFT and virtual life
Avatars and social events
People also collect NFTs for social credibility, status, and a sense of belonging to a community of like-minded people, just as Twitter recently launched the ability to use NFTs as profile pictures. do.
For example, one example of avatars evolving within the Metaverse Development Services can be found in the NFT collection “Gutter Cat Gang” and its partnership with virtual reality studio “House of Kibaa.”
House of Kibaa will create an animated 3D avatar for every Gutter, and holders will be entered into a raffle to win free upgrades such as weapons, clothing, vehicles, pets, properties and more available in the House of Kibaa metaverse.
The term Metaverse was first used in Neil Stephenson’s 1992 novel Snow Crash. Broadly speaking, it means a virtual world reminiscent of Ready Player One or games like Roblox or Fortnite.
People can live in the Metaverse via avatars, trading and managing digital assets anchored in a fully functioning real-world economy.
While the details of the Metaverse market are still abstract in some areas, the power of NFTs (Non-Fungible Tokens) is increasing as a sort of infrastructure and economic foundation within the Metaverse. People are using NFTs within the Metaverse to purchase digital items such as virtual properties, event tickets, and avatars.
NFTs and games in the metaverseP2E game items and rewards
P2E (play-to-earn) models such as Axie Infinity and Tamagotchi-inspired Aavegotchi reward users with in-game crypto assets and NFTs that can be traded, sold or borrowed. Giving is creating a whole new virtual economy.
In addition, games such as Battle Racer have made car parts even more useful by releasing them as separate NFTs. Users can purchase such parts and build their own vehicles or sell them on marketplaces like OpenSea.
It’s still a long way off, but this use of NFTs in a blockchain network could also be applied to skins and cosmetics (elements that change a character’s appearance) in more mainstream games such as Fortnite.
Not only will it allow players to better reflect the ownership and authenticity of the items they own, but it will also help increase in-game spending globally, which is expected to exceed $74.4 billion by 2025. It should be too.
Epic Games, the software developer behind Fortnite, welcomes NFT-enabled games to its store, but says it won’t release or be directly involved in NFTs due to fraud concerns. there is
NFT and virtual life
Avatars and social events
People also collect NFTs for social credibility, status, and a sense of belonging to a community of like-minded people, just as Twitter recently launched the ability to use NFTs as profile pictures. do.
For example, one example of avatars evolving within the Metaverse Development solutions can be found in the NFT collection “Gutter Cat Gang” and its partnership with virtual reality studio “House of Kibaa.”
House of Kibaa will create an animated 3D avatar for every Gutter, and holders will be entered into a raffle to win free upgrades such as weapons, clothing, vehicles, pets, properties and more available in the House of Kibaa metaverse. can participate exclusively in
private events and parties
NFT tickets can be used to generate revenue from virtual events, parties, concerts and more held in various metaverses. Rapper, avid NFT fan, and entrepreneur Snoop Dogg will host a private party in September 2021 in partnership with The Sandbox.
NFT Investing in the Metaverse: Advanced
Total spending on NFTs will reportedly exceed $12.6 billion by 2021. Here are some examples of how buyers can earn passive income and get the most out of their investment.
Yield-Generating NFTs: Timing the Web3 market is nearly impossible for even the most seasoned investors. So, in order to create more realistic incentives and reduce the impact of NFT sector volatility, there are many projects that generate passive returns by issuing governance tokens.
For example, Genesis Cyber Kongz, set to generate 10$ BANANA tokens every day for the next 10 years. Other projects include SupDucks ($VOLT) and Mutant Cats ($FISH). Bored Ape Yacht Club is also expected to launch its own token in the first quarter of 2022, although the use case remains unclear.
Staking: Besides collecting NFTs that generate passive returns, investors can also benefit from the combination of NFTs and DeFi protocols by staking, locking up their assets into smart contracts and getting rewarded. can also
Due to the strict rules surrounding securities, these rewards are often project-specific tokens used for common functions such as governance and voting rights. Still, if the token is traded on a decentralized exchange such as SushiSwap or Uniswap, it can be sold.
Nested NFTs: NFTs used to be pretty static. In many cases, something someone made and bought on the secondary market couldn’t be changed. However, with the advent of platforms such as Charged Particles, NFTs can now be layered on top of other NFTs into virtual baskets containing multiple ERC-based tokens.
These new types of nested NFTs, such as endlessly linking rare NFTs to other rare NFTs, add unique value to collections and turn speculative investments into profitable assets. can be converted to
Nested NFTs help provide value to users within the metaverse by customizing virtual items and adding new functionality. Charged Particles co-founder Ben Lakoff shared some use cases in a webinar. These include weapons that increase in power as the included NFTs earn interest, and paintings that change according to the number of tokens deposited.
