The Trends Of NFT In The Near Future — Tokenplay.app
NFTs use the blockchain technology that underlies cryptocurrencies such as Bitcoin to certify ownership of a file. NFTs are ‘minted’ in the same way as cryptocurrency — using one of many online platforms to add them to a tamper-proof blockchain ledger, typically at a cost of tens or hundreds of dollars — and then sold online. People can buy and trade these certificates in the same way as physical collectibles, such as baseball cards. The art or data can be freely viewed online and downloaded in their original form; the NFT buyer simply has a verifiable receipt of ownership, NFTs are best understood as computer files combined with proof of ownership and authenticity, like a deed. Like cryptocurrencies such as Bitcoin, they exist on a blockchain — a tamper-resistant digital public ledger. But like dollars, cryptocurrencies are “fungible,” meaning one bitcoin is always worth the same as any other bitcoin. By contrast, NFTs have unique valuations set by the highest bidder, just like a Rembrandt or a Picasso. Artists who want to sell their work as NFTs have to sign up with a marketplace, then “mint” digital tokens by uploading and validating their information on a blockchain (typically the Ethereum blockchain, a rival platform to Bitcoin). Doing so usually costs anywhere from $40 to $200. They can then list their piece for auction on an NFT marketplace, similar to eBay.
NFTs are having their big-bang moment: collectors and speculators have spent more than $200 million on an array of NFT-based artwork, memes and GIFs in the past month alone, according to market tracker NonFungible.com, compared with $250 million throughout all of 2020. And that was before the digital artist Mike Winkelmann, known as Beeple, sold a piece for a record-setting $69 million at famed auction house Christie’s on March 11 — the third highest price ever fetched by any currently living artist, after Jeff Koons and David Hockney. Some digital-art collectors say they’re paying not just for pixels but also for digital artists’ labor–in part, the movement is an effort to economically legitimize an emerging art form. “I want you to go on my collection and be like, ‘Oh, these are all unique things that stand out,’” says Shaylin Wallace, a 22-year-old NFT artist and collector. “The artist put so much work into it–and it was sold for the price that it deserved.” The movement is also taking shape after many of us have spent most of the past year online. If nearly your whole world is virtual, it makes sense to spend money on virtual stuff.
Nonfungible tokens prove ownership of a digital item — image, sound file or text — in the same way that people own crypto coins.
· An NFT is worth what someone is willing to pay for it, which can be a lot if the NFT is made by a famous artist and the buyer is a wealthy collector.
· Unlike crypto coins, which are identical and worth the same, NFTs are unique.
So-called whales are making the biggest deals in the NFT art world. These deep-pocketed investors and cryptocurrency evangelists stand to benefit financially from hyping anything remotely related to crypto. “A Winklevoss spending 700 grand on a Beeple or whatever is very much marketing spend for an idea that they are heavily invested in,” the technologist and artist Mat Dryhurst says, referring to Tyler and Cameron Winklevoss, two well-known cryptocurrency bulls who bought Nifty Gateway in late 2019 for an undisclosed amount. While the technology at play and the value system behind NFTs can appear complex, the factors fueling the market — fandom, royalty economics and the laws of scarcity — are themselves age-old propellers of consumer behavior. As Hu wrote, “NFTs help close the stubborn gap between the emotional value and market value of art in a digital world.”
What is an NFT?
Put simply, an NFT is a record that shows who owns a unique piece of digital content, similar to the way a vehicle title shows who owns a particular car. In theory, any piece of digital content can be minted into an NFT, from songs, photographs and works of digital art to tweets, memes, published articles and podcasts. When someone “mints” an NFT, they create a file that lives on the blockchain, which means it cannot be copy and pasted, edited, deleted or otherwise manipulated. An NFT is non-fungible because it is not interchangeable; each NFT is distinct and has a unique ID. While many associate blockchain with Bitcoin, NFTs use a different kind of cryptocurrency called Ethereum. To buy an NFT, you must first buy Ether. Then you can shop for NFTs on a handful of platforms.
Why buy an NFT?
When you buy an NFT, you gain ownership of the content in question, but it can still travel freely across the internet, be viewed, listened to or saved by anyone who wants to do so. At first, this might sound like it reduces the value of an NFT: What good is “ownership” of a work of digital art if everyone has equal access to it?
In reality, the more a file is shared and seen online, the more cultural value it accrues. Walden, the technologist, uses the work of Andy Warhol as an example. Here’s the cool part, though: When you buy an NFT through an online platform, which is known as a primary market transaction, the platform takes a percentage cut — between 3% and 15% — and the creator takes the rest of the revenue. Then, if you decide to sell that NFT to a new buyer, which is known as a secondary transaction, you receive 90% of that revenue, but the original creator also gets a cut, generally 10%. This continues… forever.
What are the current trends within the NFT space?
NFTs have so many unique applications outside of collectibles and art. Let’s take a look at some of the most interesting use cases which are already disrupting established sectors.
• Social networks
By leveraging blockchain-powered decentralization, the next generation of social media networks is set to remedy the flaws commonly found within the traditional Big Tech social companies. Open-source code, decentralized control, democratic decision-making and greater control of how influence is monetized sits at the heart of this change. Distributing control away from Big Tech, and into the hands of creators and fans in a way not possible before. Projects such as BitClout are providing new and innovative ways for social media stars, fans and peers to monetize their influence. Within BitClout, NFTs are used to build Creator Coins which represent a popular identity such as Elon Musk (CEO Tesla), Chamath Palihapitiya (venture capitalist) or Logan Paul (YouTuber). The value of the Creator Coins relies entirely on that person’s popularity, meaning the value can also rise or fall based on whether that celebrity does something positive or negative with their content. Another interesting example is Hyprr. This social network supports content creators from TikTok and Instagram by allowing a fair way to get paid for the content they produce. Creators can turn their content into exclusive digital collectibles using NFTs, meaning ownership and authenticity are guaranteed. Users of the network (fans, followers and other creators) can exchange, collect and trade these NFTs within the marketplace.
• Ecommerce
The very nature of non-fungible assets allows for an explosion of different opportunities within the ecommerce sector. In fact, it is already being described as dCommerce. Within traditional ecommerce, transactions are often centralized by several high-profile intermediaries — just look at Amazon, which in 2020 accounted for 50% of all ecommerce sales. These monopolies hoover data, prevent pricing and product transparency while leveraging surplus value created by their users. In a decentralized ecosystem, however, NFTs could place the power back into the hands of consumers, alongside individual brands and creators. Splyt is definitely at the forefront of this movement. Its eNFT (Ecommerce-Non-Fungible-Token) tokenizes off-chain products on the blockchain. This creates a universal, standardized protocol for how data and funds are shared securely between all parties in ecommerce transactions. In an age where more and more products are entirely digital, the ability to add transparency to the center of transitions between buyers, sellers and resellers opens up huge opportunities.
• Gaming
A huge area of growth for NFTs resides within the gaming space through crypto gaming. Crypto gaming enables players to collect and trade virtual assets anywhere in the world. As you can imagine, NFTs are playing a large role in the expansion of these types of games. The earliest forms of crypto games such as CryptoKitties centered around one-of-a-kind cat collectibles, allowing gamers to earn, buy, sell and swap these NFT “kitties” among themselves. As time has moved on, however, NFTs have started to make more of an impact within this space by allowing scarcity, valuable rewards, competition benefits, and ultimately, real-world value to in-game items. One of the most interesting examples within this new breed of game producers is AnRKey X. The team has built a gDEX (Decentralized Finance Gaming Platform Exchange) protocol that merges the worlds of DeFi (Decentralized Finance) yield farming, NFTs and competitive esports into what they are terming M$ports (Money Sports). This allows teams of gamers to compete against each other to earn yield, with NFTs featuring key in-game characters providing valuable power-ups to increase APYs. This area is really catching attention — allowing in-game items to have their own unique value outside of the game ecosystem while providing a compelling use case for NFTs within games.
• Fashion
Gucci recently began selling digital sneakers for $12 a pair. These could only be worn within an AR (Augmented Reality) environment, but allows for a new and exciting way for fans of fashion brands, both big and small, to engage with the labels they love by owning unique clothing and accessories. It also represents a huge opportunity for fashion brands to scale across totally digital ecosystems. Scandinavian brand Carlings began selling 3D versions of their clothes back in 2018. They recently put a 19-piece collection comprised of unique, virtual clothing pieces up for sale. It’s another great example of how fashion brands could begin to leverage NFTs to create entirely new product categories — and proves there is a demand.
What does the future hold for NFTs?
We’ve already seen what’s currently taking shape through NFTs, but as more players enter the space, the best story wins. Some incredible use cases could significantly change the way we interact with each other, with brands and with celebrities digitally. Imagine attending a concert, an exhibition, or a performance and owning a unique souvenir from that experience. Or perhaps owning a limited edition set of outfits from your favorite designer that can be used across your social media avatars or when gaming. Perhaps we could even see the day when ownership of offline assets such as your car, or even your house could be on-chain through NFTs. This a truly interesting space, and one in which content is king.
Similar to digital ticketing, NFTs are also emerging as a way to grant access to exclusive experiences. In February, Microsoft launched a game that celebrates women in science and rewards players with NFTs that unlock secret games inside Minecraft. Besides gaming, NFTs are frequently used to sell a wide range of virtual collectibles, including NBA virtual trading cards, music, digital images, video clips and even virtual real estate in Decentraland, a virtual world. The NFT market is likely to grow further because any piece of digital information can easily be “minted” into an NFT, a highly efficient way of managing and securing. digital assets.
