Jul 1st 2022 | 09:42 | 3 min read
NFT VS Metaverse is amongst hottest topics that carry a vast business potential. While attracting media eyes and creating a massive buzz in the technology world, these two domains have significantly raised brows too. Businesses still are trying to understand these two concepts due to the ongoing confusion of NFT vs Metaverse.
Chaincode Consulting is trying to narrow down the explanation and the benefits of building these solutions. Most people get confused between NFT and Metaverse. While NFTs relate to websites and the transactions that occur through them, Metaverse is primarily VR-based.
Metaverse makes it possible for users to meet, game, shop, and work. It gives a mixed experience of VR, augmented reality, and blockchain. One can smoothly transit between these different worlds. Your visibility on the metaverse is through an avatar. You have social hubs where you do activities like gossiping, playing games, and sharing news. With the existing concept of the metaverse, people can hang out, shop, attend concerts, and do sightseeing. Even more surprising is that you can even purchase on metaverse through its marketplace or do it via an NFT platform like Rarible or OpenSea.
What are fungible tokens and NFT?
To understand the concept of fungibility, let us first know about fungible tokens. Fungible tokens refer to all the assets that can be interchanged with other identical items. In the cryptosphere world, various assets like Ethereum and bitcoin serve as fungible tokens also. Knowing the definition of fungible tokens, NFTs (Non-Fungible Tokens) means the opposite of fungible tokens. They give us a unique perspective of other assets that can be measured in fungible units. Their most certain examples are digital collectibles or digital art and other digital IDs such as healthcare records or credit history that are unique and valuable and are not exchangeable. They are the digital certificates of the ownerships existing on a blockchain.
What is the significant difference between NFT and Metaverse?
NFT (Non-fungible Tokens) is primarily a virtual token with no identical alternatives. They are unique and one-of-a-kind assets. They are an explosion in the world of asset tokenization. On the other hand, Metaverse is a mere theoretical concept of a VR world. Here we can shuttle between various activities, data, and locations. Metaverse includes a virtual world where people can purchase NFTs for digital assets.
NFT Vs Metaverse
|Anil Dash and Kevin McCoy in 2014
|Blockchain technology – people purchase NFTs with cryptocurrency
|NFTs (of digital collectibles)
|Platforms to purchase them
|Various platforms like OpenSea, KnowOrigin, Crypto.com, Decentraland
|Non-fungible – cannot be exchanged
|Fungible – can be exchanged
How to use the NFTs?
NFTs can be hypothecated (digital or healthcare records) or tradable (collectibles and art). NFTs trail into the marketplace and require fungible tokens such as bitcoins for value derivation. Such marketplaces need integration with the Defi ecosystem or digital exchanges for transfer and trade purposes. Various use cases of NFT include:
Real estate: In real estate, NFTs simplify and gear up the transactions, enable automatic payments through the development of smart contracts, or even allow home rental services (decentralized) All this is done while protecting users’ sensitive data, such as details of credit cards.
Videos: NFTs display video content, like music videos, sports moments, and unusual moments. With the NFT token distribution, we can distribute video clips and NBA player tokens.
For Domains: One can take the NFT domain name with private keys, retaining the domain’s complete control. You will have greater freedom of speech and the perfect avenue for your website to fight against censorship.
Where is the NFT market going? How much are NFTs worth?
Now theoretically, anyone can tokenize their work and sell it as an NFT. So let us understand if it is worth buying an NFT. An NFT sale involving multi-million dollars recently the market interest recently.
NFTs are just proof of digital assets’ authenticity, ownership, and existence. They stand for both the transferable and non-transferable entities that have value. Here we can understand the promise of blockchain that visualizes tokenization, digitization, and finance democratization. It activates networks that can move the weight with lesser intermediation.
How can enterprises and businesses understand the disruptive and transformative powers and employ these emerging models in their existing business streams?
Don’t worry if you have been watching from the shores, not sure from where to begin – The NFT ship yet hasn’t sailed far. All industries and individuals are now running in wild waters, getting their feet wet to catch this wave. Suppose you want to embrace NFTs and the metaverse in your business. In that case, you can have great opportunities to break the competition and color your business as an emerging and future-oriented one. ChainCode blockchain services give life to your ideas. With our expert NFT solutions, you can explore the use of digital assets and blockchain in your business. With our NFT services, companies can rock the digital world by expanding their reach to global audiences, including companies, music lovers, traders, and developers.
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