Metaverse Cryptocurrency and NFTs
Cryptocurrency is core to the economics within decentralised Metaverse platforms. Each decentralised Metaverse platform has its currency, and these currencies are called Crypto Tokens. Metaverse Crypto Tokens fluctuate in value and are traded like any other cryptocurrency. They differ from cryptocurrency coins like Bitcoin and Ethereum by not having their own native blockchain. A blockchain is a digital ledger that stores information on a digital asset.
Cryptocurrencies started way back in 1983. A cryptographer called David Chaum conceived an electronic currency called eCash. Then in 1995, he implemented it using his company DigiCash he created a type of cryptographic electronic payment system. The system allowed the digital currency to be untraceable by the issuing bank, the government, or any third party.
Twelve years before Bitcoin, in 1996, a paper published first in an MIT mailing by the National Security Agency (NSA) entitled How To Make a Mint outlined cryptocurrencies. It was Bitcoin though that first realised the idea of a decentralised cryptocurrency. Bitcoin was created by Satoshi Nakamoto (his pseudonym) in 2009. The cryptocurrency was the result of Nakamoto’s vision of a currency not regulated or centralised and not controlled by any single country or bank, that anyone anywhere could use, and because of the architecture of the blockchain technology, no one could ever change or break the technology. The purchasing of Bitcoin in the early days also was not straightforward but now Bitcoin is easily traded on the exchanges and has been adopted by financial institutions.
Many cryptocurrencies have been created since Bitcoin, often referred to as Altcoins. Some of the leading Altcoins are Ethereum, Binance, Cardano and Avalanche. They differ from Bitcoin as they are programable cryptocurrencies and this means for example, that when a purchase is made with them, all of the information is stored on the blockchain.
Cryptocurrencies are core to decentralised Metaverse Platforms and allow the applications to monetise Land, Buildings, Wearables and other digital assets. The value of real estate, metaverse property and digital assets within the decentralised metaverse platforms such as Decentraland, Cryptovoxels, Somnium Space, and The Sandbox is determined by the value of the Metaverse crypto token on exchanges.
NFTs (Non-fungible tokens)
NFTs are the way Metaverse digital assets are traded. An NFT is a non-interchangeable unit of data stored on a blockchain in the form of a digital ledger that records ownership of the item. NFTs are used to buy and sell many types of digital creations, from artwork to wearables, land and architecture. Quantum, the first known NFT, was created by Kevin McCoy and Anil Dash in 2014. McCoy and Dash called the technology “monetized graphics”.
Today NFTs are used as a format to sell a diverse range of copyrightable items such as music, film, and digital art. NFTs can be used for real-world items. Converting the item into an NFT makes buying, selling, and trading efficient whilst reducing the risk of fraud. NFTs are bought and sold on the Metaverse and the Web through marketplaces like Opensea so buying an NFT is a relatively simple process. Here at Metaverse World Builders, we can help you create and promote your NFT collection to the Metaverse audience. We can create Worlds that showcase your NFTs and actively promote them.