NFTs are the most tangible aspect of blockchain available to the masses. The versatile nature of NFTs makes them more attractive. NFTs can play a vital role in the mass adoption of crypto, blockchain, and web3.
Why are NFTs important?
N NFTs are undoubtedly becoming popular as a source of investing. An NFT offers a mechanism to store cryptocurrency as a digital asset. An NFT has investment potential in that its value may rise more quickly and significantly than an equivalent holding in cryptocurrency.
NFTs can also be used as collateral when asking for cryptocurrency loans or to represent more complicated financial products that can be exchanged on secondary markets (like how a person might use his house as collateral when trying to obtain a loan from a bank). However, this is just the beginning.
More broadly, the prevalence of NFTs reflects the world’s growing emphasis on digital assets. Creating the “metaverse,” a network of online interactive virtual worlds, is receiving much attention and funding. Plots of land in the “metaverse” are currently available for purchase as NFTs on websites (like Sandbox) (so that you can create your own home or store in that virtual world). Digital assets, specifically NFTs, are expected to become more critical as the “metaverse” becomes more sophisticated and well-liked.
The “blockchain” technology and contract that NFTs are based on are another crucial feature. The fact that a contract supports an NFT and that the terms of that contract may, therefore, grant the owner of the NFT and its certain inventor benefits has broad commercial implications.
Real-Life Examples
Although the NFT market may be unstable, there is potential in it. Because of volatility, investors can design buy-low, and sell-high strategies, which can result in extraordinarily high profits. Additionally, a tumultuous market provides the ideal setting for separating the most substantial projects and holders from the weakest. NFT gaming, ticketing, and streaming are famous examples of more people and brands embracing NFTs.
NFT Gaming & Ticketing
For instance, play-to-earn (P2E) models are gaining popularity in games like Axie Infinity and Blankos Block Party, which allow players to profit financially. Many businesses, like GET Protocol and Centaurify, are introducing NFTs to the ticketing industry. The ability to store tickets more securely, have greater control over the secondary market, and be treated like digital collectibles are all benefits of creating tickets as NFTs.
3.3% of global trade in 2019 was made up of the sale of fake goods. According to a recent study, up to 20% of all the paintings that museums own could be fake. This problem is so significant in the sneaker industry that StockX, a shoe verification, and resale platform, is valued at roughly $4 billion. Nike has patented CryptoKicks, a blockchain-based verification mechanism. According to the patent, CryptoKicks may function like an NFT game, allowing players to breed, purchase, and sell sneakers by enabling real-world ownership verification.
Music Industry
The first artist to tokenize an album was DJ 3LAU, who earned $11.6 million from the 33 NFTs of the album he sold. His upcoming endeavor, Royal, aims to revolutionize the streaming music industry. Royal plans to tokenize songs to grant ownership over them using the $16 million of the investment.
Film Industry
A new animated series on the blockchain is one of the NFT initiatives that Fox Entertainment is supporting with $100 million. Along with the release of the movie Dune, Warner Bros. also created collectible NFTs. A recent NFT from Vuele has an Anthony Hopkins movie. Also, funding has been secured for a new NFT show by Steve Aoki. Disney is introducing digital collectible NFTs in conjunction with Disney+ memberships. Comedians can sell their jokes and comedy specials on Jambb as NFTs.
Digital Transformation
The job landscape is shifting because of digital transformation and blockchain technology. NFTs, blockchains, and cryptocurrencies are already being adopted by people more than ever, but this trend will continue to grow. Crypto job postings on Indeed increased by 118% only in 2021. The potential of blockchain and NFTs to verify digital ownership will serve as an economic incentive for adoption, increasing transparency in the digital world. Compared to millennials, Gen Z is more inclined to invest in cryptocurrencies and NFTs than stocks, and as digital assets become more widely accepted, their investments will support market growth. These industries will expand as younger, digitally native generations mature.
Future of NFTs
Businesses are estimated to employ NFTs more and more in the following years as a critical component of their advertising and marketing strategies, revenue generation, and overall business models. Blockchain technology, in which all transactions involving a specific currency are recorded publicly, is here to stay. NFTs (and their related consumer behavior) are a dynamic and fascinating development in this area with broad economic implications.
