The domain of NFT has been creating many highlights from the beginning of 2021. In a recent improvement, Visa enters metaverse by purchasing an NFT, and this is a striking highlight for the NFT space. By purchasing the unique piece of digital art, Visa has marked a subtle entry into the metaverse. Many are touting this move as a profound milestone in the growth of the metaverse, or a virtual world with the capabilities for transforming the internet to virtual reality.
The latest NFT purchase of Visa is the CryptoPunk 7610, a unique piece of pixelated artwork. Interestingly, Visa has not invested in any physical artwork drawn on marble or canvas. The digital artwork also referred to as an NFT or non-fungible token, is basically a digital asset. Visa purchased the CryptoPunk 7610 on August 18, 2021, and this visa news showcased how the digital payments giant could become a part of the metaverse.
Visa, the digital payments giant, purchased ‘CryptoPunk‘ for $150,000 and entered into the NFT craze on 18th August. This is reported to be its first step towards the metaverse, a growing domain that has the power to change the world of internet into virtual reality.
NFT Purchased by Visa
NFTs have the capability for certifying authenticity, provenance, and ownership of any digital asset on a blockchain. The news of “Visa buys CryptoPunk” also reflects profoundly on the details of the CryptoPunk 7610. It is one of the ten thousand pixelated artworks in the CryptoPunk collection. Each NFT in the cryptographic collection has to be created with specific algorithms with 24×24 pixel resolution. The NFT purchased by Visa is the avatar of a female character with distinct highlights such as bright red lipstick, a Mohawk, and large green eyes.
Visa has purchased the CryptoPunk 7610 for a staggering value of $150,000. Therefore, such an NFT purchase by a large company like Visa definitely calls for attention from enthusiasts in the NFT space. As a matter of fact, Visa has not taken custody of the 49.5 ETH, i.e., the price of the NFT itself. On the contrary, a newly licensed bank known as Anchorage has played a crucial role in completing the deal. As a result, Anchorage is presently the first US bank to take custody of NFTs.
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Transforming the Vision for Future with NFTs
The demand for virtual experiences is growing substantially with newly evolving virtual experiences alongside digital assets and avatars. Interestingly, blockchain enthusiasts, gamers, investors, and innovators are seeking opportunities in the ever-growing world of digital experiences. With the news of ‘Visa buys CryptoPunk’ and the simplicity of the transaction, banks and payments companies could look at completely new types of services they would have to offer in the future.
The Head of Crypto at Visa, Cuy Sheffield, has stated that NFTs could play a significant role in transforming the future of commerce, retail, entertainment, and social media. As an enthusiastic NFT collector, Sheffield also added, “We were looking for a firsthand understanding of the requirements for acquisition, custody, and interactions with an NFT.” Cuy Sheffield also stated that Visa has collaborated with Anchorage on this NFT purchase for building necessary expertise. It will help them in the future to support clients in navigating the NFT landscape.
The greatest player in the field of international football, Lionel Messi has launched his own collection of non-fungible tokens (NFTs), crypto art that was created with his image by digital designer BossLogic.
New Strides in NFT Purchases
The details of the latest Visa news of purchasing an NFT were available exclusively with Forbes prior to the announcement. According to the source, the transaction involved an undisclosed third-party seller and an Ethereum smart contract. Anchorage was the primary entity responsible for conducting the transaction with decentralized software operational on the blockchain. The official website of CryptoPunks developers, Larva Labs, provides all details regarding the transaction.
After completion of the transaction, Anchorage stored the NFT in the digital vault of Visa. In addition, Anchorage also ensured accessibility of the NFT with the help of the private key of Visa. According to the Co-founder and President of Anchorage Digital, Diogo Monica, Anchorage has stored the NFT in a digital vault behind a very heavily safeguarded digital door rather than in a traditional bank with an actual vault.
Interestingly, Anchorage also ensured compliance with the full KYC process to create a benchmark for other banking and corporate giants aspiring to join the NFT economy. How? The bank did not have to go through the full KYC process, and it did, thereby setting a perfect example.
According to Cuy Sheffield, Visa perceives prolific opportunities in driving the metaverse revolution in which merchants would transform the economy. Visa is hopeful of a future where the crypto address of an individual would be equally significant as their mailing address. Visa has been successful in adapting to different transitions in the world of commerce in the past. Therefore, it also harbors hopes regarding their contributions in boosting the new transition of commerce in the future.
The Metaverse is Already Expanding
As Visa enters metaverse, it is important to take a look at the existing state of the metaverse. The virtual world has already served as the foundation for the growth of multi-billion dollar marketplaces. NFT collectibles such as CryptoPunks have been able to accumulate a sales volume amounting to $752 million. On the other hand, the NBA Top Shot NFT valued at $661 million alongside their growing value indicate promises for the growth of NFT ecosystem.
Many users are seeking alternative sources of income, and the metaverse includes pay-to-earn games for solving these issues. One of the play-to-earn games, Axie Infinity, can help users in regions that have incurred heavy damages during the pandemic. Axie accumulated $1 billion in sales and qualified as the first NFT to achieve such a feat.
Awareness of NFTs and the Future of Metaverse
While the NFT purchase by Visa points towards favorable opportunities, the amount of money involved in NFTs can lead to risks. Experts have pointed out to possibilities of malicious actors using the metaverse for illegal activities such as money laundering. However, the participation of other corporate biggies such as Facebook in the metaverse could boost its growth in future.
Visa has also released an NFT whitepaper alongside the Visa news of purchasing CryptoPunk 7610. The NFT whitepaper could help businesses and brands with a better understanding of NFTs and their capabilities. Experts are hailing this purchase as the beginning of Visa’s journey in the metaverse. Most importantly, it is important to find out how Visa would help merchants, platforms, and brands in connecting and interacting with the domain of NFT.