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5 Proven NFT Aplications For The Metaverse
There are two things that everyone is talking about at the moment:
- The metaverse
- NFTs
In this special report, we will reveal 5 proven NFT applications for the metaverse that you can profit from. There has never been a better time to get started with NFTs in the metaverse as the buzz about these two things is at an all-time high. It is not likely to quiet down anytime soon either.
There are millions of dollars being invested in the metaverse today. Investors see the metaverse as the future of social interaction in a 3D virtual world. Using NFTs to sell unique digital assets in the metaverse makes a lot of sense. As you will see from this report, there are several different applications that you can tap into.
You do not have to be a technical genius to profit from NFTs and the metaverse. There are plenty of capable coders that can turn your dreams into reality. New ideas are what will help to grow the metaverse and make it the place that everyone wants to visit. They will want to buy things while they are there so help them to do that with NFTs.
WHAT IS THE METAVERSE?
Before we get into the NFT applications for the metaverse, you need to understand what the metaverse is and what it is likely to offer soon. A metaverse is a virtual world that uses technologies such as virtual reality (VR) and augmented reality (AR) to provide an immersive experience for users.
There are several metaverses in existence today and most of these operate on a blockchain platform. Blockchain is a decentralized ledger technology that is used to support cryptocurrencies and NFTs (non-fungible tokens).
Metaverses use blockchain technology because it allows for limitless social interaction and the trading of NFTs. It is easy to scale a metaverse on a blockchain platform and shortly it will be possible to connect individual metaverses to create one large metaverse.
Think of a metaverse as a digital 3D world that has many different elements to it such as gaming areas, shopping areas (using NFTs), socializing areas, communication and interaction with others, personal digital avatars, and a whole lot more.
The metaverse will provide new freedom for users. There are several NFT applications where anyone can create and trade unique digital assets. Some of the metaverses that exist today are very popular and are growing their user bases significantly. Many are based around gaming but this is not the only option available.
Mark Zuckerberg, the CEO of Facebook, believes that the metaverse will allow users to do things virtually that they do in the real world. Examples of this are socializing with family and friends, attending concerts and other live events, learning and education, shopping at virtual malls purchasing NFTs, and even holding business meetings.
To get the best experience in a metaverse, users need to wear VR headsets. Some of the VR headsets available on the market today are heavy and not very comfortable to wear. Facebook and other companies are working on this and have invested millions into the development of lighter and more versatile VR headsets.
Experts believe that the full metaverse (a single metaverse where all individual metaverses are connected) is 2 to 3 years away. One metaverse is the ultimate aim which will provide users with the freedom to enter any individual metaverse that they want to.
What are NFTs?
NFTs are non-fungible tokens and the best way to think about them is as a “digital asset” which is a representation of something in the real world. Here are some examples of NFTs:
- Works of art
- Video clips
- In-game customization assets
- Music
- Passes for events
Non-fungible means that they cannot be replicated or replaced. Fiat currency like the US dollar is a fungible asset because every one-dollar bill has the same value. The same is true with cryptocurrencies. If you have one Bitcoin then this is worth the same as any other Bitcoin.
People buy and sell NFTs online usually with cryptocurrency. They are traded on a blockchain network just as cryptocurrencies are. The buying and selling of NFTs started back in 2014 and they have risen in popularity ever since. It all started with the trading of digital art and has developed from there.
To put this into perspective, since November 2017 there have been millions spent on NFTs. In 2020 the market was worth around $100 million and in 2021 it reached a staggering $25 billion. Experts are predicting that it will be a $40 billion market by the end of 2022.
The biggest problem with digital assets is that they can be copied easily but NFTs are all unique. NFTs on a blockchain will either be unique or there will be a limited number of copies available. Each NFT has a unique code associated with it to identify it as genuine.
So, if there is only one NFT available then there can only be one genuine owner. Many others could copy the digital asset but they couldn’t claim to be the true owner. NFT owners often use this as a “scarcity” tactic for faster sales at higher prices. When the supply of an asset is limited then the value usually rises (if there is demand for the asset).
A lot of NFTs that are selling at the moment are digital representations of an item that has existed before in another format. Digital art is a classic example of this. The art is uniquely securitized as a token and sold on the NFT marketplace.
At this point, you may be wondering why buyers don’t just copy the digital asset in some way rather than spend so much money on them. It is all about being the owner of the original. Because each NFT has unique authentication it is easy for owners to prove that they have the original.
Many experts believe that NFTs will be the foundation for the metaverse economy. It is easy to verify proof of ownership with NFTs as well as authenticity. Metaverse users will be confident that their possessions in the new digital world will not be stolen from them and that they can easily trade them.
The value of NFTs is based on speculation. Scarcity, supply and demand, proof of uniqueness and ownership, and the ability to easily trade an NFT all help to increase value. These things are “must-haves” for the new breed of metaverse users.
NFTs and the metaverse are made for each other. There are already several examples of NFT marketplaces in metaverses that are making a lot of money. Metaverse users want to own their own unique assets and NFTs are the safe and reliable way for them to do this.
Now that you have a good understanding of the metaverse and what it will offer users in the future together with knowing what NFTs are, it is time to take a look at NFT applications for the metaverse. Most of these applications are already in use in certain metaverses and they are likely to grow in popularity over time.
1. VIRTUAL LAND AND REAL ESTATE
In the real world, people like to invest in real estate and land. The vast majority of people want to own their own homes. Some investors purchase land and real estate so that they can develop it and generate an income from it.
Users of the metaverse will want to purchase land and real estate as well. There is an existing metaverse called Decentraland, where you will see users performing different types of activities such as socializing with other users, making purchases at virtual shopping malls, meeting up with their friends at different establishments, and more.
In the Decentraland metaverse, users can purchase real estate and land. They can then do whatever they want to develop this. The environments that exist in Decentraland where users interact are built by other users who have made virtual land and real estate investments. Creating popular environments for metaverse users can be a very profitable venture.
At this stage, you may be thinking “why would anyone want to invest a lot of money into fictitious land and real estate that doesn’t exist?” Over the last few months, there has been a significant increase in the number of investments in virtual land and real estate in the metaverse.
The main reason that investors are purchasing land and real estate in the metaverse (in the form of NFTs) is because they believe that it will increase in value as the metaverse becomes more popular. There is also the opportunity to generate passive income from virtual land and real estate in the form of rents and royalties.
Imagine that you are the owner of a large piece of land in a popular metaverse. You plan to build on this land and create a giant shopping mall for metaverse users. After your mall is built you will be able to rent individual units to businesses that want to sell physical and digital items in your mall. This will generate significant passive income for you.
It makes sense that virtual land and real estate transactions in the metaverse take place using NFTs. With any land or property transaction, there must be proof of ownership, and an NFT on a blockchain will provide this. There is no need to issue title deeds like in the real world as all of the important details about the land or real estate will be included in the NFT record.
We are now seeing cases of virtual land and real estate appreciation. In the Decentaland metaverse, the price of land and real estate is on the rise. Back in June of 2021, a significant investment was made for a plot of land. Only 6 months later in November 2021, another group invested and had to pay quite a bit more.
Decentaland is not the only metaverse where virtual land and real estate are changing hands for considerable sums. There are other cases from metaverses such as the Sandbox and Axie Infinity where the prices are rising. Prices of virtual land and real estate are speculative at the moment but experts believe that prices will continue to rise as the metaverse grows.
Investors in metaverse land and real estate have other uses in mind as well. Holding special events in the metaverse (see below) has already proven to be popular and these events require land and buildings.
Will metaverse users want to own their own homes in their virtual world? Well, there is no need for them to do this from the perspective of shelter, but virtual real estate ownership will likely take off. If a metaverse user purchases real estate, they can make it their own with unique items (more NFT sales).
Having a home in the metaverse is also a good thing for inviting your friends over to visit and hosting parties. Remember, the metaverse aims to create a virtual world that is very similar to the real world. We expect personal homeownership to be something that metaverse users will want and all transactions will be with NFTs and blockchain.
2. SELLING VIRTUAL PRODUCTS AS NFTS
A virtual or digital product can be a representation of something that exists in the real world. It can also be something that only exists in a metaverse. Despite these products not being “real” in the traditional sense, there is no shortage of metaverse users that are happy to spend money on purchasing them.
You might find this hard to believe, but there are cases where people paid a lot of money to own virtual products that make them stand out in a metaverse. There are already examples of metaverse users paying high prices for virtual cars. These users want to make a statement in the metaverse so they spend a lot of money on a luxury digital car to impress others.
There have been other virtual product sales in the metaverse that are harder to explain. Taco Bell has a lot of faith in the metaverse and NFTs and they have created virtual versions of some of their real-life products. How metaverse users benefit from a virtual Chalupa Supreme is not clear, but this did not stop them from spending thousands on virtual Taco Bell products.
If you are already creating products for the real world then you need to think about how you could sell them in virtual form in the metaverse. As the metaverse gains more popularity, there will be even more buyers that want to purchase virtual products.
3. AVATAR CUSTOMIZATION
When you enter the metaverse you will do so as a digital avatar. In some of the existing metaverses, these avatars look a bit like cartoon characters but advances in technology over time will improve this. Whether metaverse avatars are cartoon-like or not, most users will want to customize them to make them unique.
How about completely transforming your metaverse avatar by purchasing a unique NFT? This is already appealing to many metaverse users. Within existing metaverses, users are purchasing NFTs and then trading them with other users to make their avatars more unique.
NFTs are playing a vital role in the personal identity of metaverse users. Users are paying high prices to make them stand out in the metaverse and not look like everyone else. Different avatars, costumes, and just about everything else.
When metaverse users are walking around, many will want to draw attention to themselves and they can do that by having a customized appearance. They will purchase customization items and features and if they want to change them, they can trade them in the NFT marketplace of the metaverse.
Purchasing these customizations shows support for the metaverse that they are in. They will be using the cryptocurrency of that metaverse which is often specific tokens. This all helps with the economy of the metaverse.
Concerts and other Special Events in the Metaverse
Recently, Travis Scott held a virtual concert in the Fortnite metaverse. Tickets for this event were sold as NFTs and there were more than 12 million users at the event. There is no limit to the number of people that can attend an event in the metaverse.
Many celebrities and sports stars are fans of the metaverse and NFTs. Snoop Dog has performed live at an event in a metaverse. Users that attended the concert were able to get up close and personal with the performer. They could do things together with him such as flying through the air. There are no security concerns for a performer in the metaverse so anything goes.
Passes to attend special events in the metaverse will be NFTs. It will also be possible to use NFTs for VIP passes to specific areas of the metaverse. You can hold a private event using real estate that you own and then mint NFTs which provide exclusive access. Perhaps you want to hold a large private party. NFT passes are a way for you to make money from this.
Staging events in the metaverse is one of the reasons that there is so much interest in owning virtual land and real estate in the metaverse.
You need to give attendees a location to go to and if you own a specific metaverse space then you can use this for your event. Collaborations with performers and sports stars are possible with a split of the revenue generated from selling passes.
4. IN-GAME PURCHASES
Right now, there are several games available that have an in-game purchase feature. Here players can purchase items and features which provide them with an advantage in a game. To reach the highest level of some games, in-game purchases are a must.
There will be a lot of gaming taking place in the metaverse. Think about the possibilities here. You can sell NFTs to players to give them a better chance of success in a game. These could be special powers or weapons and even land in strategic areas.
A gaming model that has taken off in the metaverse is play-to-earn. As a player completes certain tasks in a game they are rewarded with tokens. This is an open economy concept that works well. Where are the players going to spend the tokens that they earn? In the associated NFT marketplace of course!
Make the purchase of specific NFTs in a game mandatory to reach a level for example. Players are used to this now and they will happily trade their earned tokens for the chance to progress to a higher level. The players will also be supporting the economy of the metaverse which they will be happy to do.
If players have not earned enough in-game tokens to purchase something that they need, you can have an arrangement where they can purchase the tokens using some other form of cryptocurrency. There will be players that do not want to wait to earn tokens and will be happy to purchase the necessary items in this way.
5. IMMERSIVE LEARNING AND EDUCATION
The metaverse promises to provide the capability for immersive learning shortly. Users can attend a metaverse classroom and will receive personal training from teachers. Online learning is already big business, and the metaverse can take this to the next level by providing lots of interactive features.
You can get your students close up to the thing that they need to learn about. For example, if they are studying astronomy and the planets then there could be a virtual tour of the planets in the solar system where students will be able to check them out closely.
Training for specific jobs or industries could also take place in the metaverse. New pilots have to train using a flight simulator and there is no reason why any kind of simulator cannot be created in the metaverse. Businesses and organizations would be willing to pay a high price to train their employees in the metaverse.
It makes sense for a business or organization to train its employees in a safe and cost-effective environment. The cost of providing such an environment can be prohibitive in the real world. Metaverse developers can create life-like training environments that are certified by industry associations.
All of this immersive training will be paid for using NFTs. There can be special NFTs minted for each company or organization which permits a specific number of employees to attend for example. Individuals can pay for the training that they need using NFTs as well. When they have completed their training successfully, a smart contract will issue them with a certificate.
CONCLUSION
In this special report, we have just scratched the surface of the NFT applications that are available in the metaverse. Whenever there is a need for a financial transaction in the metaverse then NFTs are the best way to achieve this.
Do you see the possibilities here? There is no doubt that the metaverse and NFTs are going to become more popular in the future. Microsoft founder, Bill Gates, suggests that the full metaverse will be available in less than 3 years. Using the ideas in this report you can start making money from the metaverse with NFTs quickly.
Bertrand Allard