The Metaverse, NFT, and DeFi components all operate on the blockchain.
Facebook’s rebranding to Meta isn’t simply a name change. We know how rebranding has redefined the role of the company as a platform that is helping to make the crypto space more inclusive. How? Metaverse, along with DeFi (decentralized finance) and NFT (non-fungible tokens), has a real-world use case for being in the virtual world.
Inclusion helps to link virtual environments to real-world problems and exchanges. With Metaverse, the transaction of digital art and FinTech products becomes more transparent and decentralized, while remaining secure on the blockchain. Wondering how important use cases are for Metaverse, NFT, and DeFi? Let’s take a look at their real-world use cases.
Metaverse
Metaverse is supposed to be a completely immersive space of virtual reality. The virtual avatar will traverse this digital environment in a more participatory manner. It will help users to socialize in addition to sharing pictures and documents. From pre-screening real estate assets by checking them out in virtual reality to buying homes through tokens, Metaverse enables it all. Metaverse tokens, including MANA, GALA, etc., are growing in popularity due to their use. These tokens are trading entities that can be used to trade on the virtual market in the Metaverse environment.
NFT (Non-Fungible Token)
NFT or Non-Fungible Token is more than just the sale and purchase of digital artworks. They have a wide range of real-world use cases as fashion brands and corporate companies are starting to promote themselves by distributing their NFTs. From social media posts (remember Jack Dorsey’s first tweet sold for $2.9 million?) to celebrity properties, NFT is the way to trade all of these items. while retaining the original copyright of the product. NFT gave gaming platforms a new life as players started “playing for money”. Nowadays, games that can help users earn NFTs can be traded in the market for a higher price. NFTs overlap with Metaverse in their use cases. Game assets in the case of Metaverse are traded as NFTs with the help of Metaverse coins.
DeFi (Decentralized Finance)
To use Metaverse coins or tokens, you will have to buy them first. You can do that by going through a round of fiat currencies and banking intermediaries. But that would spoil the whole point of the decentralized transaction mechanism. That’s when decentralized finance or DeFi comes into play. Through the DeFi network, you can easily buy or sell your Metaverse tokens using smart contracts, P2P trading, etc.
All components – Metaverse, NFT and DeFi – operate on the blockchain.
