The metaverse and NFTs aren’t exactly new concepts, however, both have recently skyrocketed in terms of popularity and are being celebrated for their own respective uses. Implemented together, they could be used to solve problems surrounding identity verification. Before we get into that, it’s useful to know exactly what we mean when talking about NFTs and the metaverse.
NFT stands for non-fungible token, a unique and unalterable certificate of ownership stored on the blockchain. Consider an NFT as a receipt for a transaction linked to something off-chain, like a piece of art.
NFTs provide ideal proof-of-ownership, as their smart contract codes link the owner directly to the asset. It’s impossible to change that code without fundamentally altering it.
The first known NFT was minted in 2014, and they’re only now being discussed alongside another emerging tech innovation promising to change our everyday lives — the metaverse.
The metaverse is a hot topic, and Facebook’s rebranding as Meta in November 2021 only intensified interest. It’s a much-talked-about concept, though still yet to be properly defined. In simple terms, the metaverse is billed as a virtual world where AR (augmented reality) and VR (virtual reality) create an immersive 3-D experience.
Why is everyone talking about it? Well, it eliminates geographical boundaries and can save people time, money, and effort.
The smallest plot of land you can buy on Decentraland and Sandbox, two of the biggest metaverse platforms, now costs around $13,000. Virtual land has already sold for as much as $4.3 million and, by the laws of supply and demand, scarcity always drives prices up.
Metaverse adoption remains relatively low. As we’re only witnessing the very start of the virtual real estate economy, prices are likely to spike as the rate of adoption further increases. Digital land will inevitably appreciate, and so too will the need for a model with unique, verifiable certificates of ownership to record transactions and connect purchasers to their property.
Fortunately, that’s precisely what NFTs are designed to do. NFTs not only prove ownership of virtual land, but can be used for furniture and clothing for virtual avatars, too.
In 2021, the NFT market erupted and is now worth over $15 billion. Investors capitalized on the boom and over $5 billion worth of profit was recorded as a direct result of NFTs. In the short time since, we’ve seen digital artwork NFTs sell for over $90 million.
Critics have predicted that the bubble will burst, much like the infamous boom and bust of ‘tulip mania’ during the 17th century in the Netherlands — where increasingly extortionate prices and market saturation rendered the product virtually worthless. That’s not necessarily the fate of NFTs, however, and the sale of digital art is only one example of NFT technology.
NFTs have real-world uses beyond digital art. That’s been clear since 2019 when, at the NFT.NYC, a conference dedicated to furthering the NFT narrative, attendees were granted access through an NFT-controlled ticketing system.
Metaverse NFTs are a different story, they serve a definite purpose and are central to the success of the emerging virtual world’s economy. They could even drive adoption outside of the metaverse, too.
Blockchain technology upholds the unique, unalterable quality of NFTs. It makes NFTs ideal for certifying ownership rights of non-physical items, like digital concert tickets, and could therefore be used to help tackle the recent rise in online ticket fraud.
Blockchain security is the real game-changer. It’s providing a much-needed solution to the problem of online identity verification.
The same technology that makes NFTs suitable for establishing ownership rights makes them ideal for identity verification. As technology improves, online impersonation is an ever-present threat to institutions and individuals alike, and identity ownership is of increasing importance.
Nowadays, cyber criminals can steal passwords, forge passports, and even hack your biometrics. It’s likely, in the future, that your digital identity will need to be even more secure than traditionally recognized documents.
Here at LOX, we’re not only targeting but dismantling the criminal market for stolen phones. It’s our mission is to eliminate mobile device theft for good. Our system, LOX Network, uses a unique dual-NFT proof-of-ownership model to protect your ownership rights and help track, trace and recover your mobile devices in the event of loss or theft.
To find out more about LOX and our new SmartLOX app, please click here.