Non fungible tokens, known as NFTs are digital assets which use the ledger technology of blockchain to prove authenticity and ownership. In the same way that blockchains act as a ledger for the transactions that take place on them, blockchains can also irrefutably record digital asset ownership.
Right now, NFT digital assets are already being traded for billions of dollars and the interest in them shows no sign of slowing down.
In the metaverse, NFTs are the assets you own. Snoop Dogg's land, a virtual yacht and Nike's virtual trainers are only the beginning of what people can spend their money on. As the Metaverse continues growing at pace, NFTs will become an integral part of our culture with purchases funded and guaranteed by blockchain token technology.
For a “metaverse” to work, people need to be able to spend money safely and securely, knowing that their transactions will be verified and recorded accurately.. Blockchain is the technology that allows users to trade with each other, without the need for third party oversight.
Using a consensus mechanism, a blockchain is a decentralised network which is capable of making an irrefutable record of transactions which use its native tokens. These tokens are widely known as cryptocurrency.
A blockchain stores its data in blocks that are chained together. Once a block is filled, it is ‘shut’, and chained onto the previous one. Once ‘shut’ the block cannot be opened and the data it contains is permanently recorded on the network.
Unlike conventional networks, where data is stored on a central server, the data in a blockchain is distributed amongst the nodes of the machines that access it, meaning there is no single, centralised point where all the information is held. This makes a decentralised network less vulnerable to attack or technical outages.
A well developed blockchain also scales up as usership increases. Since processing power for the network is provided by the nodes of users that access it, computing power is added by default when a user joins a network.
Decentralised finance (DeFI) or cryptocurrency, was the first concept to take advantage of this distributed network, with Bitcoin (the first widely available cryptocurrency), allowing users to transfer money between each other without involving a bank, or third party, the funds were guaranteed by the irrefutable ledger of the blockchain.
For the metaverse to operate as advertised, offering people a chance to live and spend money in a virtual world, cryptocurrency needs to work. Blockchain technology provides security, offering users peace of mind that their personal data and finances are securely stored.
While You're Here
Sign up today to learn more about about the Fitness Metaverse and the opportunities it can unlock for your brand and business.