Answering the cryptic question: Does Metaverse need NFTs?

The metaverse and the NFT space have both had their vocal detractors, but could the secret to their mass adoption lie in their ability to collaborate? Developers of the first quantum-safe, hyper-realistic gaming metaverse, Kryptiverse, think so.

Walt Greene, founder and CEO of QDEx Labs, which developed Kryptiverse, helps us dive into what NFTs really are and the role they play in the metaverse.

The apparent “uselessness” of NFTs

In 2021, Steam explicitly banned apps built on blockchain that issue or allow the exchange of NFTs and cryptocurrencies. This year, Mojang Studios and Minecraft also took a firm stance against NFTs. Apart from tech and gaming companies turning away from non-fungible tokens, the NFT market has also been severely affected by the crypto crash.

In fact, the monthly transaction volume for NFTs on OpenSea has dropped by 90% from January to August this year. These call into question the actual value – or lack thereof – of NFTs and their relevance in the emerging metaverse market.

However, Greene attributes this state of “uselessness” to the limited understanding of NFTs. According to him, many people have no idea what they are getting, much less what NFT technology has the potential to represent. He further explains that the centralized approach and business models associated with Minecraft and Steam do not necessarily mix well with the decentralized nature of a true NFT technology.

A deeper understanding of NFTs

To fully understand the value that NFTs bring and the role they play in the metaverse, we need to have a more in-depth understanding of what an NFT actually is.

When we hear about NFTs, we categorize them into purely digital assets. By putting them in this box, we perceive that they have no real value beyond the digital space. However, NFTs are more than just digital assets. When you own one, you get a unique, transferable and indisputable token that gives you absolute rights to a digital asset. It is a confirmation of ownership of collectibles, shared property, works of art and other items.

NFTs and Metaverse

Now to answer the cryptic question: Does the metaverse need NFTs? Well, not really. NFTs are not required in the metaverse. However, these two are not mutually exclusive.

“When talking about where metaverse is on the way, and it is into decentralized ecosystems, NFT-like technologies with actual the tool can and should play a critical role because of the use of technology from the recording of information to the sovereign ownership they maintain,” says Greene.

Although the metaverse doesn’t really need NFTs, these unique tokens can solve the challenges the metaverse is facing. Greene sees NFTs playing two main roles: in-game use and ownership (DRM) via the identification of an asset and the microtransactions in the developer or creator support ecosystem. These will help develop the metaverse into a truly successful, highly individualized and experiential digital ecosystem.

NFTs: driving the creation of a quantum-secure high-definition gaming metaverse

NFTs have the potential to drive the creation of a quantum-safe, HD gaming metaverse. NFTs are used to build the Kryptiverse, a fully integrated metaverse for gaming.

According to Greene, while the QDEx Community’s TSSYRQ Network will bring the quantum-secure aspect to the gaming party, the KRYPTI game will bring the metaverse together with the crypto industry for easy onboarding into DeFi via a hyper-real, immersive user interface and action. All the user needs to do is learn how to play the game.

NFTs will bring significant benefit to the KRYPTI gaming ecosystem. Early adopters in the Kryptiverse receive the “keys to the kingdom” from the first 1777 Genesis Mint. These versatile NFTs have over 2,150 lines of code in their contracts that contain class information, numerous statistics, variable aspects, and other data that is fully reconciled with the blockchain.

Deliver value beyond the world of games and entertainment

NFTs have potential for use beyond the world of gaming and entertainment. Genesis NFTs, for one, provide utility and incentivization in the quantum-secure QDEx app – a feature-rich, decentralized marketplace for crypto and digital asset exchanges being developed by QDEx Labs.

While the NFT market is highly volatile today, we still see the crucial role NFTs play in the metaverse. QDEx Community, KRYPTI and Kryptiverse together represent the intersection between ease of use and mass adoption of the blockchain. This complex connection between communities, NFTs and metaverse platforms is what will pave the way for growth in this space.