Facebook’s rebranding into Meta wasn’t simply a change of name. We know how the rebranding redefined the company’s role into a platform that is helping make crypto space more inclusive. How? Metaverse, along with DeFi (decentralised finance) and NFT (non-fungible tokens), have a real-world use case while being in the virtual world.
The inclusivity helps link the virtual environment with real-world problems and exchanges. With Metaverse, the trading of digital art and FinTech products became more transparent and decentralised, while safely remaining on the blockchain. Are you wondering how Metaverse, NFT, and DeFi have important use cases? Let’s take a look at their use cases in the real world.
The Metaverse is supposed to be a fully immersive space of virtual reality. Virtual avatars will traverse through this digital environment in a more participatory way. It’ll help users socialise beyond sharing images and documents. From pre-screening real estate property by examining them in virtual reality to buying homes through tokens, the Metaverse allows it all. Metaverse tokens, including MANA, GALA, and more, are rising in popularity due to their uses. These tokens are transactional entities that can be used to trade in virtual marketplaces in the Metaverse environment.
NFT (Non-Fungible Tokens)
NFT or Non-Fungible Tokens are not just about selling and buying digital artwork. They have a widespread set of real-world use cases as fashion brands and corporate companies are beginning 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 retaining the original authorship of the product. NFTs have given gaming platforms a new lease of life as players have started to “play to earn”. Today, games can help users earn NFTs that can be traded on marketplaces for higher prices. NFTs overlap with Metaverse in their use cases. Gaming assets in the Metaverse case be traded as NFTs with the help of Metaverse coins.
DeFi (Decentralised Finance)
In order to use the Metaverse coins or tokens, you’ll first have to buy them. You can do it by going through a loop of fiat currencies and bank intermediaries. But that’ll spoil the whole point of a decentralised trading mechanism. That’s when decentralised finance or DeFi comes to play. Through DeFi networks, you can easily buy or sell your Metaverse tokens using smart contracts, P2P transactions, and more.
All the components — Metaverse, NFT, and DeFi — operate over the blockchain.