Our world is constantly evolving, and the technology that was a wonder just a decade ago, is now hopelessly dated. Let’s take a look at two major innovations in the tech world and finance, as well as how they may affect our very near future: The metaverse and NFTs.
What is the metaverse?
The metaverse is a scaled, interoperable network of real-time rendered 3D virtual worlds to be experienced simultaneously by an infinite number of users. In addition, the metaverse has continuity of data, which includes identity, objects, communications and payments. In simple English, the metaverse is an all-immersive digital universe where users can live, connect and even make financial transactions through virtual reality and augmented reality.
Does the metaverse exist?
While some forms of the metaverse already exist, the full experience envisioned by tech giants likely won’t be ready for consumer use for another five to 10 years. However, small aspects of the metaverse, including ultra-fast broadband speeds, online worlds that are always “on” and virtual reality headsets bringing the user into another world, are already quite common across the internet and gaming world.
How will the metaverse affect the world of finance?
Experts envision a world where a consumer can enter a massive virtual shopping mall, purchase a unique digital item and sell it in a different virtual world, such as on Twitter or eBay. In addition, the expected meteoric rise in popularity of the metaverse creates a unique investment opportunity for the savvy investor.
What are NFTs?
NFTs (non-fungible tokens) are a kind of crypto asset in which each token has a unique value. This is as opposed to “fungible” assets, like Bitcoin and dollar bills, which all have exactly the same value. Because every NFT is unique, they can be used to authenticate ownership of digital assets, including artworks, recordings and virtual real estate or pets.
How do NFTs work?
NFTs can be anything digital, like music, videos or drawings, but digital art has been monopolizing NFT trading since its inception. NFT art collecting is not unlike fine art collecting in the real world: Millions of people can buy a Monet print, but only one person can own the original – and pay for it. Similarly, while anyone can own a copy of a digital piece of art, the original can sell for hundreds of thousands of dollars, or in some cases, millions.
What’s the purpose of NFTs?
NFTs present a world of financial possibilities for artists and collectors.
Digital artists with real talent can earn a pretty penny through NFTs and will continue enjoying dividends of their work far beyond its initial sale. Every time the NFT changes hands, the artist gets a percentage of the profits.
Collectors can use NFTs to purchase unique digital artwork as a financial asset. A work of art always carries with it the possibility of becoming wildly popular and spiking in value. Digital artwork is no exception. In addition, owning an NFT comes with some basic rights, which include being able to post the image online.
Use this primer to kickstart your knowledge of the metaverse and NFTs so you’re better prepared for it and investing in the future.