Non-fungible tokens (NFT) have experienced a boom in recent years. In this blogspot we will try to understand how an ecosystem that includes artists, blockchain, metaverse, investors, brands, developers and gamers, can develop in the coming years.
What is an NFT?
A non-fungible token is one that has unique properties, so it cannot be exchanged. For example a house, or a work of art like the Mona Lisa. We could take a photo of the painting or buy a copy but only one original painting will exist.
NFTs are an inimitable asset in the digital world that can be bought and sold like any other type of property, but they have no tangible form. These digital tokens are certificates of ownership of virtual assets.
What are the NFT markets like?
NFTs exceeded USD 17 billion in trading volume in 2021. And they are expected to reach USD 147 billion in 2026. We can already see how they are having consequences in different businesses.
These tokens have achieved notoriety in the art world with Christie’s and Sotheby’s auctions. Both began trading NFTs, and in the past year have sold Bored Apes, CryptoPunks, and works by Beeple for prices ranging from USD 1 million to USD 60 million. Tokens as a work of art have ceased to be static images to incorporate audio and video. A transformation that has also expanded to video games.
Apps such as Axie Infinity or Waves Ducks work with the so-called ‘play to earn’ model in which players can monetize their hours of play. The next step in this sector will be to evolve non-fungible video game tokens. The players are owners of the avatars, each game has currencies with which objects are bought and sold to use in the digital world. There is no doubt that the future of NFTs 2.0 have the potential to change traditional gaming.
Another sector where non-fungible tokens have also prospered is the metaverse, brands are already experimenting with unique cryptos. The novelty ranges from objects that avatars can use in the virtual world, to NFTs for credit card payments or linked to an object that is bought in the metaverse and then delivered to your home.
Non-fungible tokens have the advantage that they are monetizable, they become properties of virtual objects that can be traded. One of the great challenges presented by NFTs is their synchronization with the real world. Regulators will need to keep up with the fast evolution of this industry to protect buyers from counterfeits and ensure authors are protected from copyright.
What’s next in NFTs?
NFTs present some challenges for outsiders. First, they are not easy to use, and therefore understanding their behavior in the markets becomes somewhat complex. Second, associated with the previous point, estimating its real value is very difficult, many tokens do not usually have the value they claim to have.
The good thing is that the market is in a stage of maturity where several indicators, such as investments, indicate that they are ready to take the step to the next level where the technology will be more accessible, with greater transparency and reliability.
It is estimated that new uses for these tokens will emerge. From video games and DeFi 2.0, to data identity and real estate. New uses for NFTs will have an emphasis on experiences, such as concert tickets, immersive art exhibits, dining experiences, and travel of all kinds.
NFTs also have their future in the entertainment industry. Possibly special scenes, actors and characters from movies and series will be created in the form of NFT. The big brands will also continue to see the potential they have to market and sell their products. Companies can create exclusive tokens for specific product launches. Visa, Nike, Adidas and Mastercard have recognized NFTs potential to create new user experiences and generate engagement.
2021 witnessed the exponential growth of the NFT community. The power these digital assets have to create great connections between creators and their user community has shown its growth potential.
The market of the future of NFTs 2.0 is beginning to mature, and that change is gaining momentum. We are entering a new era of NFTs where the technology will be more easily accessible to the general public, and the value proposition will be more transparent and trustworthy.
NFTs are going to grow and evolve rapidly. That’s why it is important to grow fast if you are in the business. In order to do so, you need a group of experts supported by the best ad technology to reach the right users.