Metaverse and non-fungible tokens

How will NFTs impact the metaverse given the hype surrounded to it.

1 thought on “Metaverse and non-fungible tokens”

  1. TL;DR below

    The real question is; Who controls the Metaverse?

    Is it centrally controlled, owned, and gatekept by Meta? If so, then it’s just a “new” AOL and, given its high barrier for entry in the form of needing new hardware, it will have difficulty justifying its existence over the long term as competition offering more open platforms are developed. This is the weakest foundation for Meta to build its future on and NFTs stuck within the metaverse won’t amount to much more than in-game currencies.

    Is it a partnership (cartel) of corporations that will share governance and oversight over the platform? If so, then the metaverse might have some staying power but will certainly invite competition. NFTs that can hold value across several marketplaces would be big. This is an optimal foundation for Meta to build its future on. But, open networks still pose a threat to this paradigm. The more opportunities a market can provide, the bigger its likely to become.

    Is it an open and decentralized platform that Meta intends to relinquish ownership of? If not, then a decentralized solution without gatekeeping will inevitably make the metaverse irrelevant. Web3 is already attempting to do this. NFTs would have no restrictions on what markets they can be traded on and can find validation in many forms. However, Meta would be making itself irrelevant in the process.

    When these questions are answered you’ll know whether or not any NFTs on the platform will have any sort of long term value outside of hype cycles. Maybe we’ll see the birth of new classifications of NFTs. Those that are stuck within restricted platforms versus unlocked-NFTs that can travel and be traded anywhere.

    It should be known that Facebook has been looking for a way to remain relevant for quite a while, so you need to consider that the metaverse might be more of a ‘hail mary’ than a ‘euraka’ moment for the company. Therefore we also need to think about whether metaverse is relying on the hype of NFTs to boost its own profile and relevance rather than the other way around.

    TL;DR

    NFTs in the metaverse might only hold longterm value if they can be traded on open markets outside of the platform. Otherwise, I’d be wary that facebook’s rebranding as Meta is part of a scheme to use NFT hype to keep itself relevant.

Leave a Comment