Here’s why they’re important in the blockchain world
The rebranding from Facebook to Meta wasn’t just a name change. We know how the rebranding has redefined the company’s role as a platform that helps make the crypto space more inclusive. How? ‘Or’ What? Metaverse, along with DeFi (decentralized finance) and NFT (non-fungible tokens), have a real-life use case while being in the virtual world.
Inclusiveness connects the virtual environment with real-world issues and interactions. With Metaverse, the commerce of digital art and FinTech products has become more transparent and decentralized, while remaining secure on the blockchain. Wondering how Metaverse, NFT, and DeFi have important use cases? Let’s take a look at their real-world use cases.
The Metaverse is meant to be a fully immersive virtual reality space. Virtual avatars will cross this digital environment in a more participatory way. It will help users socialize beyond sharing pictures and documents. From screening real estate by viewing it in virtual reality to buying homes through tokens, the Metaverse does it all. Metaverse tokens, including MANA, GALA, and more, are growing in popularity due to their uses. These tokens are transactional entities that can be used to trade on virtual marketplaces in the Metaverse environment.
NFT (Non-Fungible Tokens)
NFT or non-fungible tokens aren’t just about selling and buying digital artwork. They have a wide range of real-world use cases as fashion brands and businesses start to promote themselves by distributing their NFTs. From social media posts (remember Jack Dorsey’s first tweet that sold for $ 2.9 million?) To celebrity assets, NFTs are the way to trade all of these items while still retaining the original authorship of the product. NFTs breathed new life into gaming platforms, as gamers began to âplay to winâ. Today, games can help users earn NFTs which can be traded in the markets at higher prices. NFTs overlap with Metaverse in their use cases. Game assets in the case of the Metaverse will be traded as NFT using Metaverse Coins.
DeFi (Decentralized Finance)
To use the Metaverse coins or tokens, you will need to purchase them first. You can do this by going through a loop of fiat currencies and banking intermediaries. But that would spoil the whole point of a decentralized negotiating mechanism. This is where decentralized finance or DeFi comes in. Thanks to DeFi networks, you can easily buy or sell your Metaverse tokens using smart contracts, P2P transactions, and more.
All of the components – Metaverse, NFT, and DeFi – run on the blockchain.