NFT, Web3, Metaverse: characteristics and difference
NFTs are tokens whose content inside them is a unique asset that cannot be replicated or replaced by another token.
Web3, often confused as an evolution of Web 2.0, is actually a decentralized system that presents itself as an alternative to centralized systems that hold control over content created by users.
The Metaverse is a universal, virtual and immersive world that can be accessed thanks to virtual reality and augmented reality.
In this article we discover what the differences are between Web3 and Metaverse, what they are and what their characteristics are, what NFTs are, what their characteristics are and how they work.
Web3 and Metaverse: similar or different?
Before providing an in-depth look at NFTs, Web3 and Metaverse, it is a good idea to first clarify the difference between Metaverse and Web3.
The two terms are often used as synonyms precisely because they use decentralized technologies such as blockchain, cryptocurrencies, NFTs and more, but in reality they are different.
Although different, the two concepts are not in opposition to each other but rather need each other to complete each other.
The Metaverse is a parallel universe of the real world and in this world there must be solid infrastructures that can be provided by Web3.
Differences between Metaverse and Web3
The Web3 is a decentralized system that aims to act as an alternative to those centralized systems that control the content created by users. Since it is based on the blockchain, the data is open and collectively owned, therefore users are the real owners of their data which is considered a public good and anyone can contribute to monetizing it.
As for the Metaverse, we are faced with a broader vision. It is a universal, virtual and immersive world in which physical and digital reality are connected to each other. Each individual can “travel”, whenever they want, from one dimension to another.
NFTs what are they?
The NFTs or non-fungible tokens, are tokens whose content inside them is a unique asset that cannot be replaced by another token. NFTs are unique and cannot be replicated precisely because they have unique identification codes and metadata that allow them to be distinguished from other NFTs.
Unlike cryptocurrencies, which are interchangeable and used as a payment method, NFTs are unique and cannot be replicated. This is why they are defined as “non-fungible”, because there can only be one original token, identified by codes, which cannot be modified, registered on the blockchain.
They can represent content or objects present in the real world such as works of art, music, collections, games, images, audio and much more.
Whoever buys an NFT does not buy a material good but rather buys the right to that good. For example, if a user buys a work of art, he does not buys the artwork itself but the right to that artwork is guaranteed by a smart contract.
A smart contract is nothing more than a software based on blockchain technologies that allows you to manage and carry out transactions without the need for intermediaries.
The characteristics of NFTs
In light of what has been said above, we can classify the characteristics of NFTs as:
- Rare: because the value of tokens derives from scarcity.
- Indivisible: it cannot be divided into smaller units.
- Unique: the original is always and only one that is identified by the blockchain.
How do they work?
NFTs, as anticipated, are based on the blockchain, the system underlying cryptocurrencies and distributed ledger on which transactions are recorded.
An NFT is created from digital content that can represent tangible and intangible objects, including: Works of art, Videos, collectibles, virtual Avatars, music, Gifs and more.
NFTs can be owned by a single person at a time, and thanks to the unique data of the NFTs, ownership can be easily verified and tokens can be transferred from one owner to another.
The main NFT trading platforms are: OpenSea.io, Rarible, Foundation.
OpenSea.io is a peer-to-peer platform that provides collectibles and rare digital objects. Rarible is an open and democratic platform, it allows artists and creatives to publish and sell NFTs. Finally, Foundation is an invitation-only platform, artists must be invited by other artists to publish their works.
What is Web3?
The term Web3 was coined by Gavin Wood, co-founder of Ethereum. This term is used both to indicate digital innovations that are based on blockchain technology and to indicate, erroneously, a phase of evolution of the web (web 1.0, 2.0).
In Web 2.0 there are limits related to centralization. Even though users are free to create, share content and interact with each other, they must comply with a series of regulations that are imposed by the platforms.
The Web3 on the other hand is based, first of all, on decentralization and ownership of content. Everything that creators and artists produce is, in fact, their property and they can decide whether to monetize it and how to do it.
We can therefore talk about Web3 not as an evolution of Web 2.0 but as a very broad concept that includes different elements united by blockchain technology. The latter is placed, by Web3, at the base of existing technologies: Artificial Intelligence and the Internet of things.
How does it work and what are its characteristics?
In Web3, the contents or services are no longer within servers or platforms owned by companies or multinationals, but are distributed homogeneously across the entire network.
The contents are no longer owned by platforms such as Tik Tok or Instagram, but would remain with the legitimate authors. Even devices no longer connect to central servers but to distributed registries where you can find and use all the information you want.
We have already given a brief preview of the features of Web3, but let’s see them in detail.
1.Decentralization: In a decentralized structure, no one has full power. Users have control and ownership over the content they create. To maintain a decentralized structure, Web3 uses blockchain technology that uses distributed ledgers to record and store information.
2.Governance: is a mechanism used by decentralized platforms to give users a voice. Users can give their opinion and vote on proposals, updates, interface or policy changes, feature removals and anything else that concerns a platform and is subject to voting.
3.Tokenization: Anything within Web3 can become a token from videos, to apps, from images to event tickets. With tokenization, NFTs can be bought and sold to monetize, gain benefits, and access exclusive content.
What is Metaverse?
The meaning of Metaverse lies within its term, the prefix meta indicates “after, beyond” and towards “universe”. The prefix Meta, however, according to Mark Zuckerberg does not only mean “beyond” but a new starting point to connect with others.
The Metaverse is a universal, virtual and immersive world. This world can be accessed thanks to virtual reality and augmented reality and the tools used such as headphones and 3D viewers that allow you to live totally immersive virtual experiences.
In fact, users can travel, create objects, meet other users and interact with them, they can create avatars, participate in concerts and much more.
The characteristics of the Metaverse
The Metaverse is mainly composed of 3 elements: VR interface, digital property and personalized avatars.
With the first element you can enter a totally immersive reality, which you can touch with your hands, with the right of ownership you can buy goods and with the customization of avatars you can interact with other users.
Other features to highlight are:
- Three-dimensional spaces
- Shared structure
- Use of augmented and hybrid reality technologies
- Use of digital and real currencies
- Digital property, blockchain, legislation
How does it work?
The Metaverse works through blockchain technology, a technology that allows transactions to be processed in a transparent and decentralized way. Users exchange cryptocurrencies, objects, properties, accessories and much more.
Entering the Metaverse does not require any special computer skills, anyone can access it but to do so you only need a few tools:
- PC or smartphone
- Internet connection
- Account on one of the Metaverse platforms
- 3D viewers to make the experience even more immersive
We talked about platforms, useful for entering the world of the Metaverse. Here are the ones:
Sandbox is a virtual platform where avatars can build, own, and monetize using NFTs and Sand. Decentraland is a virtual platform created by Ethereum where users can create virtual homes, buildings, and monetize through visits from other users. Items on this platform can be purchased using the Mana cryptocurrency.
Finally, Stageverse is a virtual platform for immersive experiences. You can access it through the Oculus Quest app.
