Cryptocurrencies are evolutionary products of a long overdue revolution in the financial sphere.
In recent decades, technological progress has changed our daily lives. We began to shop differently, communicate, work, drive a car and monitor our health.
The financial sector was in no hurry to innovate, but the emergence of blockchain and cryptocurrencies launched a powerful transformation. The two largest digital currencies represented by bitcoin and ether, for example, have achieved significant recognition by the investment community over the past year.
As for 2022, it will be held under the sign of the NFT and the metaverse. Many of the more than 16,935 existing cryptocurrencies are focused on the NFT market and the growing metaverse, which Mark Zuckerberg of Facebook (NASDAQ:FB) considers the future of his company. The extent of his commitment to this idea is also indicated by the recent decision to change the name of Facebook to Meta Platforms.
What is NFT?
NFTs are non-interchangeable data units, records of which are stored in the blockchain. NFTs can take the form of reproducible files, such as photos, video and audio recordings. The owner of the NFT has exclusive ownership of the file.
Each NFT is a unique token, which distinguishes them from cryptocurrencies, which are interchangeable or easily exchanged for digital or fiat currencies. Bitcoin and ether units can be compared to dollars, euros or other exchange instruments, while NFTs are like works of art, fine wines or other one-of-a-kind assets.
NFT and the metaverse have become the epicenter of technological evolution
NFT and the metaverse have become one of the main areas of innovation. The metaverse combines virtual, augmented and physical reality, blurring the line between real and digital interaction. It is a network of three-dimensional virtual worlds focused on social connections.
NFT and the metaverse are the next stage of technological evolution, and a number of leading companies have already begun to develop them.
The generation of the 1990s (and later), which is used to computer games, understands cryptocurrencies, NFT and the metaverse much better. But cryptocurrencies are not only the lot of the young, as their incredible rally attracted investors and speculators of all age groups.
NFTs represent the concept of digital ownership of a digital asset, which is a little more difficult for baby boomers and the older generation to understand. The metaverse is another step forward, because it exists in another dimension and looks more like science fiction than reality. However, the presence of real demand for property and other assets in the metaverse means that this direction cannot be written off as a fad.
We bring to your attention four tokens that were created with an eye on the metaverse and NFT.
Decentraland (MANA) is an open source 3D platform. Users can purchase virtual plots of land on the platform in the form of NFT for the MANA cryptocurrency.
Decentraland debuted in February 2020 under the control of the non-profit organization Decentraland Foundation. According to information from the project’s website, it is “the first ever virtual world owned by its users.”
On January 20, MANA occupied the 32nd line of the cryptocurrency rating with a capitalization of $ 5.12 billion (at the rate of $ 2.81 per token).