Metaverse: How NFTs are Building the Digital World

The metaverse and NFTs have found themselves among the hottest topics of discussion across several communities. These conversations have sparked various reactions ranging from murmurs of a not-too-distant utopian future to outright dismissal amidst claims of unhealthy hype and faddism.

Even companies such as Facebook have been heavily involved, with CEO Mark Zuckerberg willing to bet on the impact of this development by calling for future applications to consider this technology.

Lovelace aims to provide the tools to help brands establish themselves in the metaverse, and overcome the pain points that exist in the current virtual climate.

A Decentralized Future?

The web as we know it has undergone several notable evolutions since its inception. These changes led to the rise of several businesses and top-tier companies that recognized these moves before they happened and rode the wave towards massive individual and corporate success.

Web 2.0 brought a significant change from the static nature of its predecessor with a new focus on interaction and user-generated content. However, despite this substantial improvement in connectivity and collaboration, it still possesses the limitation of monopoly.

With Web 2.0, user data is primarily controlled and used for revenue generation by the large companies that host this user-generated content. This means users are confined to regulations set by these corporations on how their information and the content they generate is managed. For example, under particular conditions, Youtube has the legal right to take down a video uploaded by an individual.

Over time, whispers of an iteration of the web dubbed “Web 3.0” have grown increasingly louder. Many experts now believe that the future of the web rests on decentralization driven by blockchain technology.

While some have called for some degree of caution regarding these claims, there is no denying the potential for massive impact that this decentralization could provide. The tremendous ripple effect of blockchain technology is likely to cut across various industries and sectors from banking and finance to gaming, retail, and much more. Blockchain is changing the game, and one of the most eye-catching innovations that have been built around this technology is referred to as non-fungible tokens (NFTs).

Contrary to what many assume, the scope of NFTs extends beyond selling digital art pieces at exorbitant prices. NFTs are unique, irreplaceable tokens that can be used to secure ownership of any digital or even real-world products (songs, videos, games, tweets, and much more). The implications of this are far-reaching because these tokens could be harnessed to improve general and peer-to-peer digital interaction. This makes it a perfect fit for spearheading the metaverse’s development. Ideas surrounding the metaverse and the use of NFTs are primarily based on the decentralized framework provided by open-source platforms such as Ethereum.

What is the Metaverse?

Although the metaverse has fast become one of the buzzwords for 2021 among tech and blockchain enthusiasts, there is still no general consensus about what it actually is. The primary reason for this is because the metaverse isn’t just one thing, but a combination of various existing technologies such as virtual reality, augmented reality, and much more.

The term ‘meta’ in this particular use case doesn’t imply a sharp departure from real-world interaction. Instead, it cuts across both digital and physical worlds, with users participating within the space via self-created digital identities or avatars.

The metaverse encompasses a combined virtual environment having its own economy with content and merchandise for users to purchase or just simply enjoy. In other words, it is an online space that has the capacity to address and satisfy real-world needs.

A New Approach to Online Gaming

One only needs to look at Fortnite, the highly-acclaimed online video game, to get a glimpse into what is possible in a couple of years. Since its release by EpicGames in 2017, Fortnite has grown beyond a regular video game into what can best be described as a full-fledged ecosystem. Furthermore, Tim Sweeney, CEO of EpicGames, has publicly voiced his belief that Fortnite could eventually evolve into something much more than it is currently.

However, aside from EpicGames, several other gaming companies have been actively looking into entering the metaverse. Another major player in this space, Roblox, has in recent times taken a big step in realizing this vision by tweaking their avatar system. Their new approach is a more liberal style that allows players to customize their avatars.

This means that they could auction off particular items like clothes or accessories for user characters, and designers of these items would profit from the sales. It remains highly probable that moves like this could become the norm in the future. The presence of NFTs would only serve to enhance the purchase and sales of these customizable items and any other in-game purchases.

Can Metaverse and NFT Collaboration Spark a Revolution in E-commerce?

To materialize the opportunities presented by gaming, NFTs, and the metaverse, it is highly critical that its implementation extends into one of the most essential facets of human society – commerce. Examining the possibilities that lie at the intersection of both of these technologies presents very tantalizing prospects for technology enthusiasts and companies seeking to test the waters in this space. NFTs may eventually become the tool that enables individuals to exchange value within the metaverse and possibly even take possession of these items in the physical world.

At the start of the year, Boson Protocol signaled their intention to demonstrate the viability of this idea with their purchase of a digital piece of land on Decentraland, the blockchain-based game that lets users buy virtual real estate online using NFTs.

Boson Protocol aims to create “new and exciting experiences that encapsulate the possibilities of digital commerce” by pioneering a new system where the middleman is no longer required. Commenting after the purchase, Justin Banon, Co-founder of the company, remarked on his excitement at the prospect of “bringing the decentralized autonomous commerce revolution to the forefront of the metaverse.”

For Boson Protocol, the goal is to create a virtual space where digital purchases can translate into physical ownership. For example, imagine the possibility of trying on a pair of sneakers using augmented reality, making a purchase for your digital avatar, and having the actual shoes delivered to you in person.

From real estate to fashion and much more, these are some of the more outstanding applications of these innovations that we have come across, and the likelihood remains that more changes will be happening across the sector in the years to come.

Expanding Your Company Brand and Building the Metaverse with Lovelace

Thriving businesses remain on top by getting in front of developments in their space and adopting innovative approaches to take advantage of these changes. Such a proactive approach helps companies achieve maximum performance regardless of external circumstances.

With the metaverse being a relatively uncharted territory, many businesses are yet to grasp how this technology will affect their ability to provide services to customers. As a result, a significant challenge for most companies, both established and evolving, is incorporating this new technology into their offerings of products and services.

Fortunately, Lovelace can help your company position itself to remain relevant with this new order. As the first-ever “Metaverse-as-a-Service” (MaaS) platform, we are able to examine and modify your products and services and adapt them to fit into both digital and physical worlds seamlessly, enabling you to maintain your company’s vision while making the necessary changes to profit from developments across the metaverse space.

At the moment, it is tough to predict if this innovation will create the level of disruption many are expecting. Like with the internet in its early days, the actual nature of the metaverse cannot be accurately defined, and any attempts to forecast the trajectory of this technology are speculative at best. However, a fact that appears hard to dispute is the critical role NFTs will play in the growth and possible mainstream adoption of the metaverse. Lovelace World hopes to position itself as an industry-leader and play a major role in facilitating this global adoption.

About Lovelace World

Lovelace empowers creators to realize the potential of the Metaverse through its NFT marketplace, Play-to-Earn gaming engines, smart contracts, launchpad, and partner integrations.

Our Metaverse-as-a-Service toolkit helps creators breathe life into their NFTs, games, digital economies, and worlds across Cardano and other blockchains.

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