Why Are Smart NFTs a Necessity for the Metaverse?
Author: Ethan Chankowsky
The Metaverse is ingraining itself more and more into the web and our lives. From truly immersive gaming experiences to fully comprehensive online interactions, the integration of all things meta is enhancing our lives for the better. In terms of NFTs, the Metaverse is chock-full of potential for investors.
Those interested in true asset ownership within the scope of the Metaverse are in for an expansive new realm of possibilities thanks to dynamic and secure digital possessions; all made possible through Smart NFTs. Why is this so?
The 3 Reasons Why Smart NFTs are Essential for The Metaverse:
- Smart NFTs are already changing the current NFT market. This will continue as we transition into a more meta world.
Before understanding how Smart NFTs are impacting the Metaverse, it is important to see how they are changing the face of the current NFT market. The reason Smart NFTs win out over regular NFTs is due to their unique ability to interpret real-world data and events. Smart NFTs then change dynamically based on these inputs. The great part? Smart NFTs are capable of all this without sacrificing their traceable and secure core characteristics as blockchain assets. This blend of smart adaptability and security infinitely boosts the versatility of Smart NFTs when compared to their static NFT counterparts.
A fantastic Smart NFT collection currently in action is the Altura Penguins Collection on Altura’s Marketplace. With each NFT possessing a “location” property at different unique cities around the world, the background scenery of each one is programmed to dynamically change based on the current time of day for that penguin’s location.
This is all well and good, but where things get interesting is the application of these smart capabilities into meta-environments as opposed to our boring real world. If the Metaverse is here to offer us immersive, changing environments to explore, we should have access to secure digital possessions that reflect and build on these changes.
2. The Smart NFT market is destined to become the digital, decentralized analogue of the “real world” economy.
The implementation of Smart NFT technology into the Metaverse will mirror how the sale of traditional assets works in our world. Just as physical possessions cannot be spontaneously deleted or forged, assets that exist on the blockchain are mathematically proven to only exist as true copies for whoever has paid to own them. The value of Smart NFTs within the Metaverse lies in their distinct ability to act as secure yet modifiable digital assets for their owners to not only hold, but also to actually use and interact with. In other words, we are witnessing these tokens transition from simply existing to be held or sold, to becoming a fundamental part of the user experience — whatever that may be.
Since Smart NFTs are ownable and dynamic digital assets, they are the candidate for certifiable and secure possessions within the Metaverse’s economy. For these reasons, the adoption of Smart NFTs into the Metaverse will enable meta-realities to function economically in a similar way to our current non-meta world.
3. There is no limit to the possibilities for what Smart NFTs could potentially do, look like or be.
Once the sale of Smart NFTs is truly adopted into the Metaverse, there is no telling what unique and groundbreaking applications will follow. The utility of Smart NFTs comes from their dynamic and reprogrammable nature. Because of this, what a Smart NFT could be, or the abilities that one could possess are limitless.
For instance, picture digital creators minting various “meta-mansions” as 3D explorable, interactive real estate properties within a virtual reality game. The scarcity of finite in-game-generated property combined with the demand for certain creators’ works could jumpstart a local real estate market. Theoretically, the same goes for anything else that creators can dream up. From one-of-a-kind mods to upgradable dynamic items, the possibilities are endless. Imagine your very own limited edition, rideable skateboard that lights up and gives you a speed boost whenever you gain a subscriber on your Twitch live stream.
With the Smart NFT market still in its infancy, the potential for applications like these in the Metaverse is sky-high.
