Nonfungible tokens (NFTs) are expected to play a significant part in the metaverse’s utility and popularity. NFTs are a type of secure digital asset that works on the same blockchain as cryptocurrency. Instead of currency, an NFT might be used to represent a work of art, music, or digital real estate. A digital deed or proof of ownership is given to the owner of an NFT, which can be bought or sold in the metaverse.
While the metaverse has given new enterprises like Metaverse Properties the opportunity to sell digital items, existing brick and mortar businesses are also getting involved. Nike, for example, bought RTFKT, a company that uses NFTs, blockchain authentication, and augmented reality to create one-of-a-kind virtual footwear and digital artefacts. RTFKT describes itself as “born on the metaverse, and this has shaped its feel to this day” on its website.
“The foundation for digital ownership is laid by NFTs and blockchain,” said Nick Donarski, CEO of ORE System, an online community of gamers, content providers, and game developers. “Ownership of one’s real-world identity will extend to the metaverse, and NFTs will serve as the vehicle for this.”