Hironobu Ueno: The Significance of NFTs in the MetaVerse

By now, most are familiar with the metaverse and the concept of NFTs. However, those not regularly embroiled in the technology world may not completely understand how NFTs are significant within the metaverse.

NFTs have gained popularity in the past few years as a way to represent digital assets. Representing assets in the virtual world of the metaverse is one way to utilize NFTs, but there are a much broader number of ways NFTs can be a benefit as we move into the metaverse.

What exactly are NFTs?

The concept of digital assets on the blockchain can be complex, but it really is as simple as representation. Non-fungible tokens are a type of unique cryptocurrency that cannot be replaced by any other token. This irreplaceability makes them ideally suited for a situation such as the metaverse, where people will need a way to lay claim to virtual assets inside a completely virtual world. NFTs have represented everything from items collected within online games to pieces of art.

The concept of NFTs predates the metaverse, especially within the gaming world. Online currency has been used for gambling, building collections of assets, and as a way to create small virtual worlds. Bringing NFTs into the metaverse is a logical step, as the metaverse is built around the same technology concepts.

What is the metaverse?

The metaverse is envisioned as a virtual, parallel representation of the tangible, physical world around us. If you ask many of the great tech minds of our generation, it is the future of the internet.

Although the full structuring of the metaverse has been relatively slow going, it has steadily been picking up steam since Facebook’s rebranding to Meta. Gaming companies have begun building VR social platforms in the metaverse, and everyone from real estate experts to celebrities vying to buy a piece of this new, virtual space.

The idea of the metaverse is still in its relative infancy, with differing views on what it will eventually become, depending on who you ask. Many people are comparing the rise of the metaverse to the birth of the modern internet. There were many theories on what the world-wide web would eventually become, but no one could likely have predicted how it would change our lives. Many are hoping that, ultimately, the metaverse will have the same life-altering effect.

NFTs in the Metaverse

There are numerous benefits to using NFTs in the metaverse. Their potential could be limitless, depending on how fast and broad the metaverse eventually grows.

Security: One of the most significant benefits to NFTs overall is the level of security that they provide to the owner and within trading. All transactions of NFTs are recorded on the blockchain, rendering it nearly impossible to fake ownership or steal. Virtual assets and transactions have been traditionally vulnerable to hacking and fraud, but the security that NFTs offer could be seen as the primary benefit of their use, especially within the novel metaverse.

Sense of value: Within the metaverse, having items that hold some sense of value will be essential. Using NFTs creates scarcity, which gives them a sense of worth. NFTs can represent one-of-a-kind items and works of art, and being able to prove ownership of such items through the use of NFTs will continue to be a draw for many.

Monetize assets: NFTs create a way to monetize assets, which will be useful and significant as the metaverse continues to be built. People will own houses, cars, and other assets within the metaverse, and NFTs will be how those assets will be monetized. This can also provide a way for people to create income streams within the metaverse, which would open up entire new industries for people around the globe.

NFT use in the metaverse is consistently being studied and designed to best fit the needs of those who will take up residence to live, work, and play in this new virtual community. There are several innovators already working on solutions to how to best integrate NFT use into the move to the metaverse. As we move forward with whatever the technological future has to hold for us, NFTs will certainly be a part of that future in some form.

Hironobu Ueno is the founder and CEO of

. He has participated in the construction of various financial system infrastructures at Nomura Research Institute. He has worked as an executive officer and technical fellow of Mobcast Co., directed the design and development of platform and game servers, and development of smartphone game development platforms. This Expert Opinion is exclusive to Broadband Breakfast.

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