Metaverse Non Fungible Tokens

Abstract

This paper examines the impact of the Metaverse and Non-Fungible Tokens (NFTs) on how we understand digital ownership and participate in online economies. It starts with a straightforward explanation of the Metaverse, focusing on its basic structure and the technologies that make it work, such as virtual reality (VR), augmented reality (AR), blockchain, and artificial intelligence (AI). The discussion then moves to NFTs, describing how they use blockchain technology to provide a secure way to show ownership of digital items. This part of the paper looks at how NFTs are changing the ways people create, collect, and sell digital content.

A key part of the analysis is how NFTs are used in the Metaverse. The paper explores how NFTs can help manage identities and ownership of digital assets, showing their potential to make digital interactions more meaningful. It also considers the broader effects of NFTs on the digital economy, including how they might change the way we think about art and ownership online, and their role in the development of decentralized finance (DeFi).

The structure of the paper includes a detailed review of related research, an exploration of NFTs' historical development, and an examination of the NFT ecosystem. It looks into various uses of NFTs, addresses the technical challenges and recent solutions, and discusses legal and ethical issues. The paper ends by considering what might come next for NFTs, suggesting areas for future exploration without making final judgments.

By focusing on the integration of NFTs within the Metaverse, this study aims to shed light on their growing significance for digital economies and cultures. It navigates through the complexities of digital asset management and interaction, contributing to the ongoing conversation on the future of online engagement and ownership.

Keywords: Metaverse, NFTs, Digital Ownership, Virtual Economies, Technological Infrastructure, Digital Ecosystems, Creators, Collectors, Digital Marketplace, Economic Models

JEL Classification: G00