Examining the Use of Non-fungible Tokens (NFTs) as a Trading Mechanism for the Metaverse

Abstract

The notion of a metaverse seems hard to define but encourages the impression that it can be considered as a new virtual metaphysical landscape that somehow goes beyond our geographical locations and understanding (i.e., independent of time and space). Based on virtual reality, augmented reality, and blockchain, it is envisioned as an independent but extended world that is planned to be a digital virtuality entrenched not only in our old habits such as gaming and entertainment but also in virtual asset trade. In particular, trading is a pillar of the virtual economy, and auction houses will be crucial for Metaverse trading. This exploratory study examines the possibility of using an auction environment to improve the trading capabilities in a virtual universe. We investigate the cases of creating a virtual auction house with the potential of social trading of virtual assets with crypto coins and bartering. To this end, we built a virtual auction house and tested it initially using a set of scenarios. Our preliminary findings suggest that creating a virtual trading environment would be beneficial as an environment for buying and selling virtual assets and exploring their consequences. © 2022, Springer Nature Switzerland AG.