Meta’s (NASDAQ: FB) two leading social media networks, Facebook and Instagram, are reportedly looking to enter the fast-evolving non-fungible token (NFT) sector.
The tech giant will be focusing on making it seamless for Facebook and Instagram users to issue, trade and showcase their NFTs. As widely reported, Meta is also taking a major step totwards transforming its business into the Metaverse platform, according to company CEO Mark Zuckerberg.
As covered, NFTs are provably unique and unchangeable digital collectibles. They’re essentially digital assets that have the ability to hold any form of media, including unique or one-of-a-kind pictures and videos. NFTs can also hold data and smart contracts. In addition to storing media, these unique digital tokens are fully traceable on blockchain or distributed ledger tech (DLT) networks.
NFTs have many different use-cases. For instance, they can serve as a medium for artwork. They can also be used as avatars and may represent tradable in-game items for blockchain or DLT-powered, decentralized video games such as Axie Infinity. These use-cases have adapted seamlessly to Metaverses such as Decentraland.
Meta’s entry into the NFT market has the potential to further increase the market size of the NFT ecosystem. It would help introduce many more consumers to these digital collectibles. This, as Facebook claims well over 2.5 billion users. It’s also possible that Meta has a plan to make NFTs a lot more accessible and intuitive, even for less tech-savvy people.
The NFT initiative is being worked on by teams at Facebook and Instagram, the Financial Times confirmed on Thursday (January 20, 2022). The report also noted that the project was currently in its early stages of development.
It’s worth noting that NFTs have quickly become a multi-billion dollar business, according to an update from blockchain security firm Chainalysis.
Notably, another key use-case for providing NFTs via Facebook and Instagram would be to give clients a good reason to open up a new Meta’s Novi digital wallet. Developed for the Libra/Diem stablecoin initiative, the tech giant recently confirmed that Novi may support the Paxos stablecoin (USDP) for its 2 billion-user WhatsApp messaging app.
Paxos will enable WhatsApp users to send payments anywhere across the globe without having to pay extra fees and transactions will settle instantly. Offering the payments solution to Facebook and Instagram users might give Meta a native crypto that’s also available outside the platform.
After users have opened up their virtual wallets, topped them up with funds, and bought items, it would be a lot simpler to convert them to complete other purchases within the Meta platform.
And, they could make NFTs transferable to a future Meta-managed metaverse, which could help with onboarding many more users.