'Metaverse·NFT' You've Heard of Once but Still Find Difficult... What Are They Used For?

On the 16th, visitors attending the 'K-Metaverse Expo 2021' held at COEX in Gangnam-gu, Seoul, are experiencing the metaverse. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Seungjin Lee] The 3D virtual world 'Metaverse' and 'Non-Fungible Tokens (NFTs)' have been hot topics day after day. When business plans mentioning these terms are announced, the stock prices of the respective companies soar, showing intense interest. However, despite many companies launching related businesses, the concepts remain vague and unfamiliar to many.

The Metaverse is a compound word of 'meta,' meaning transcendence, and 'universe,' which refers to the entire world or cosmos. It signifies a world where the real space and virtual space are organically combined. To explain more simply, it is not just the concept of connecting to a computer, but rather becoming a state of existence within the online world itself.

For example, imagine being suddenly called into a meeting while working from home. In the Metaverse world, it is not about connecting a video camera and talking while looking at each other's monitors. Instead, you wear a virtual reality (VR) device on your head and enter a virtual office, becoming as if you are physically present in the office. You can view reports as holograms in front of your eyes and share opinions. Celebrity fan sign events can also be held in the Metaverse. Similarly, you line up in the virtual world, stand side by side with a Metahuman (digital human) in the Metaverse, and take photos together.

Recently, Facebook changed its company name to 'Meta' and began full-scale Metaverse business. It also introduced 3D avatars that can be used on its social networking service (SNS) and VR platforms. Microsoft (MS) has also entered the Metaverse business. By acquiring Activision Blizzard, it aims to dominate the Metaverse market through games with the highest Metaverse utilization.

Alongside the Metaverse, NFTs frequently appear. Although the concept was born with the advent of blockchain technology quite some time ago, its use in daily life is rare, making it still an unfamiliar term. However, recently, it has been applied in art trading and games, gradually penetrating our lives.

NFT is a technology that uses blockchain, an immutable 'ledger.' It applies blockchain technology to digital assets such as artworks or game items to clearly define the owner's rights and exclusivity. Simply put, when trading artworks or game items through coins, all transaction details are recorded and visible to everyone, making forgery impossible. Since digital items are easy to replicate, it is closer to buying a certificate of authenticity rather than the actual work or item.

Globally, art trading using NFTs is already active, and Hong Kong real estate company Labs issues NFTs that verify ownership of apartments and hotel rooms. Accordingly, NFT-based businesses are gaining momentum in Korea as well.

Naver's affiliate Line has established 'Line Next,' an NFT-specialized subsidiary, in both Korea and the United States. Kakao Games' subsidiary Friends Games is also planning to launch an NFT marketplace. Netmarble will release 'Modoo Marble: Meta World,' a sequel to 'Modoo Marble,' within the year. It is an NFT game building a real estate-based Metaverse platform, characterized by economic activities using virtual real estate.