This archive report was first published on 29 October 2021.
Published on October 29, 2021, the metaverse is a virtual shared space created by the intersection of digitally enhanced physical reality, augmented reality, and the internet.
The phrase 'metaverse' originates in science fiction and is a mix of the prefix 'meta,' which means 'beyond' and 'universe.'
Non-fungible tokens (NFTs) are a new form of virtual asset that has driven much of the metaverse's growth. An NFT is a type of digital asset that may represent art, memes, in-game goods, tweets, and other things.
These digital assets have a unique digital signature, making them non-fungible. This means that each NFT is distinct from the others, and no two owners may own the same NFT.
People have mainly adopted digital, online lifestyles since the beginning of the pandemic. This trend has benefited video games significantly, particularly online multiplayer games where people can meet not only to play together but also to socialise, attend concerts, and do other things.
Companies like Decentraland and The Sandbox have built virtual worlds that use cryptocurrency, allowing players to build and monetise buildings like virtual casinos and theme parks.
NFTs will also be crucial in the metaverse, allowing users to fully own their characters, in-game items, and even virtual land. The most expensive sale to date was an NFT of a 259-parcel virtual estate in Decentraland for more than $900,000.
