Non-fungible Tokens (NFTs) are the new equivalent of a webpage or email in the early days of the internet and in time will "completely transform" how people interact online, according to Domhnaill Hernon, global lead at EY's metaverse labs.

In his talk at MWC in Barcelona, Hernon said that factors like scarcity in the creator economy are going to become extremely important in the next evolution of the internet.

To explain the concept of NFTs and why they will increase in importance, Hernon used the example of a digital avatar wearing a user-created sportscoat.

In the metaverse, someone could compliment the sportscoat and approach that user's virtual avatar seeking to do business. Should the user agree to selling the item, they could issue an NFT, which is comparable to a smart contract that hands over exclusive rights to the buyer while giving the seller the immutable right to the tertiary profits that come along with selling the unique item.

Hernon went on to describe the metaverse as the evolution of the internet today and said it would become more like how humans interact with each other and the physical world.

"The internet will become more 3D, more spatial, more immersive, and you will have a better sense of presence," he said.

Hernon also sought to dispel some common misconceptions about the metaverse, with one of the biggest being that interacting with the metaverse requires cryptocurrency.

"You do not need crypto funds in order to interact with these worlds," he said. "Misunderstanding such actualities, you are going to lose an opportunity to engage with your customers in the best way possible for your brand and your business to meet their needs."

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