Metaverse & NIFTSY
A metaverse is defined as virtual reality space that allows users to interact within a computer-generated environment, as well as the other users occupying the space. Supporting such a metaverse requires an overlapping of real world applications such as the internet and augmented reality. Today, we are talking about the creation of said Metaverse, and how introducing NFTs to such a landscape could affect it.
Theses on synthesis
To begin to paint a picture of what this type of virtual world could look like, let us first describe what the general mechanisms could entail. For this discussion, we’ll refer to the Metaverse as a game (hypothetically a game like such could take place on or offline, or both).
Let us consider that the game resembles reality in micro and macro details. For example, there is land and water, and if provided the right seeds, a tree with fruit can be grown. The fruit can be harvested or farmed as individual or interlinked digital assets. Let us also assume users have the ability to create entirely unique digital assets within the game outside of common conceptions that stem from reality (like the fruit). If the game is created within these parameters, users could then interact with an asset after it is wrapped in an NFT form like the standard ERC-1155. Thus, dynamic game assets would need to be linked and tuned together.
Whatsmore, there are strong examples of games trending in the direction of online-offline-online interactions. Pokemon Go utilizes VR/AR/MR to immerse their players in a wonderful visual world. Their platform, in fact, has begun to reshape and redefine what is real and meaningful.
The exciting part is that these types of integrations still have plenty of potential to explore.
The next step would involve the rental of artifacts or even players as NFT-bound objects. Such implementations would allow for rentals to occur, and also be guaranteed to return to the rightful owner. A potential use case would be found with new users who would like to participate with upgraded artifacts. If they weren’t able to own or afford expensive artifacts when starting out, renting could save them both time and money until they could acquire their own assets.
Lenders could be users that aren’t actively participating (i.e. they’re sleeping or otherwise preoccupied and can’t be online). This way both parties can be satisfied. Renters can navigate the Metaverse with the artifacts they deem necessary as lenders are able to gain passive income on those items. Lenders could also rest assured that their items will be returned to them thanks to smart contracts on the blockchain network.
Vital to this discussion is the following question. What are considered artifacts in the game?
Artifacts are defined as objects that have unique and special properties. These artifacts can’t be created during the game/narrative and cannot be produced on stream. Therefore, every artifact will have its own parameters and extremely rare ratios. Storing these artifacts is also an interesting point of discussion.
Today, the capacity of internal collateral (collateral storage) in an entity can be linked to the power found in artifacts. For example, contemporary games usually rely on a “pay to win” model that also considers a player’s performance and progress. These games, however, do not allow the player to advance their status within the game unless they purchase upgrades.
A game structure that doesn’t reward players based on their efforts and accomplishments damages long-term interest in the game. So instead of offering collateral rewards for work input, games are created so that collateral is dropped through periodic installments, incentivising players to check in to the game every now and then. Depending on the value of these ‘rewards’ the player can potentially advance and upgrade within the game.
Collateral can then also assist in tracking and forming a player profile. By monitoring the type, number, and volume of digital assets, the game can be personally targeted for each individual player. As more collateral is acquired, and more time is spent playing the game, the player can be rewarded for his loyalty to the game by accumulating real liquid digital assets, or even more power in their weapons. Incentives to practice loyalty to the game also drive the game creators to enhance character development.
Gameplay in any metaverse can be coupled with the concept of decentralized betting. With any p2p competition, participants could actively bet on the outcomes of a battle, race, puzzle solving competition, etc… The outcomes would automatically reassign collateral to the winners of the bets. This opens the door to the interest of the venue, promoters, sponsors, fans, and more that can take part in bets.
Affiliate programs such as farming tokens can also be launched to bundle entire games and projects that are wrapped inside an NFT. Using wrapped, programmable NFTs as tools can determine the parameters of partnerships of any organizations within the Metaverse, eventually providing new users.
A simple technique achieves this sort of implementation. Simply adding the prefix “multi” to the very repository (Collateral), within which special wallets are “opened” (effectively NFT sharding). New and untested partners could then place their token with constraints set on both sides. For example, a new constraint could be to limit the number of new “coins” to be issued, or setting a time-lock period within a certain Metaverse. Shifting the trust issue to open source software is the outcome of this implementation. Game management does not then rely on checking the quality and purity of a potential partner. When there is no collaboration, no permanent NFTs and/or shards need to be managed.
As BDO NIFTSY — A. Kuzin said: “the benefits provided by the economic value embedded within an NFT are the following:
- Artifacts are backed by real digital value with liquidity, and therefore take on a different value for players. Such assets become valuable from the moment they are created; Players combine digital asset management and gameplay through NFT technology.”
- In the end, Metaverses become more attractive to existing and new users through innovative game and economic mechanics; and the target audience expands through partnerships without constraints of continually testing, more and more connections to the Metaverse are created.
Is the future near?
Although theory is “smooth on paper”, we can’t “forget the ravines” that come with working towards a new reality. It won’t always be profitable for game makers to change their business models, especially if there are monopolies on entertainment which use old paradigms like eternal competition.
And yet blockchain has become one of the first fully global tools after the internet. If your business is not online, it doesn’t exist to a large extent. Similarly, without blockchain integrations, businesses will struggle to scale soon. After all, p2p is about an economy of action, involving not only 7.5 billion people, but also more than 30 billion devices and countless scripts, complex and not-so-complex programs, and other entities.
That’s why NIFTSY, as a Protocol, can be used in several aspects of future technological implementations like the ones discussed here, as well as similar use cases.
The NIFTSY Protocol accounts for the growth, circulation, adoption, and unfolding of NFTs, and also applies mechanics of accumulation, mutual royalties, etc.
The NIFTSY Protocol formalizes any onchain-activities, and when connected with NFT technology, provides major opportunities to various market players (from the players inside of Metaverses to game IT-giants). It also gives them the ability to set loyalty programmes of any order. But most importantly, it makes Metaverses inter-playable, increasing the available choices for the end user.
The Protocol is not a panacea or the only way to create wNFT with Collateral, but it should be considered to save development time and money, especially for those who don’t want to dive specifically into blockchain coding but want to implement cutting-edge technology into their product.
Last, but not least, the Protocol aims to give everyone a fair playing field. Long gone will be the days where preventing nefarious actors from acting maliciously or depriving someone of their achievements is a difficult task.
Hopefully we can all agree there are several aspects of positive impact to come with NFT integrations in a Metaverse. One question remains. What do you think about it?
Drop us a line and we’ll discuss it: https://t.me/niftsy_en
In the meantime.
Thanks for reading and we’ll see you soon!
