Non-Fungible Tokens and Blockchain: Foundations for a Sustainable Metaverse Economy

Abstract

This chapter examines the significant role of non-fungible tokens (NFTs) and blockchain technology in fostering a sustainable economy in the metaverse. Blockchain allows the saving and transfer of decentralized and secure data. As a primary component of the metaverse economy, NFTs are distinct and secure virtual assets saved on the blockchain. These assets facilitate possessing, trading, and monetizing digital assets. These advancing technologies have also revolutionized the method by which creators and artists test and exchange their digital work, introducing a novel period of ownership and value in the digital realm. However, the negative environmental effects of some blockchain technologies constitute a considerable constraint, pushing a shift to a sustainable economy. Platforms like The Sandbox have implemented initiatives to address environmental concerns. As a case study, The Sandbox play-to-earn model with tokenized assets showcases its ability to create value and encourage user participation. It shows the ability of NFTs and blockchain to support a sustainable economy.

Citation

Gafsi, R. (2024), "Non-Fungible Tokens and Blockchain: Foundations for a Sustainable Metaverse Economy", Krishnan, C., Behl, A., Dash, S. and Yadav, P.D. (Ed.) The Metaverse Dilemma: Challenges and Opportunities for Business and Society, Emerald Publishing Limited, Leeds, pp. 113-129. https://doi.org/10.1108/978-1-83797-524-220241007