A fresh concept took birth alongside the newfound interest of the world in the digital payment system called cryptocurrency in 2014. Non-fungible tokens are also known as NFTs are anything that is uniquely an Ethereum based asset. Meaning, most NFT’s are created on the Ethereum blockchain. However, that’s not it. There are a few more characteristics that define this entity.
Powered by smart contracts on the Ethereum blockchain, these tokens are used to represent ownership of certain digital art. As technology progresses even further, these can even represent collectables and real estate from the virtual world. NFT enthusiasts and experts believe that this is a wonderful initiative to vest power in the hands of creators and artists concerning their art.
So what’s the purpose of an NFT? As you must have gathered from above that these tokens are digital art pieces that investors can buy or trade, they also serve a second purpose. NFTs act as data stored on a digital ledger, most commonly known as a blockchain. Among all these, the most distinguishing factor of an NFT is that it is “non-fungible”. This means that there is only one unique copy of the art on the internet and hence are not interchangeable.
Despite the potential that this idea harboured within itself, NFTs blew up only recently. To be more accurate, 2021, was the year when the world saw the explosion of the NFT market as it managed to surpass even Dogecoin, blockchain and Ethereum in Google search.
Although statistics might show that the popularity of NFTs is breaking the roof in the world of virtual trading and payment platforms, most experts in the field might not entirely agree with it. While some think that the tokens are just some over-hyped fad others predict the potential boom in the usage of NFTs in the coming times. On a positive note, most investors have also unanimously voted for the durability that NFTs hold.
Mixed opinions among experts suggest that with no strong motive or vision, NFTs might soon lose their influence and depart from the trends. Contrarily, it could also mean that NFT projects based on stronger fundamentals might manage to gather great interest and money alike. There is no doubt that those with no actual foothold will soon perish.
Most of the hype around NFTs can be attributed to notable celebrity figures especially from America like Serena Williams and Paris Hilton. On one hand, where most people believe that buying portraits and artworks on a digital space for millions of dollars might not be a worthy investment, there is much more to that!
NFT artist and the CEO of NuPay brings to light a host of advantages that buyers receive on purchasing a certain NFT. In addition to that, it also enables streamlining art ownership. From in-game goods to passes to exclusive events, the possibilities are endless.
With Facebook rebranding as Meta, the world where virtual ownership of items becomes a real thing is already nigh. As major companies like Pepsi, Adidas and Nike jump in on the trend and become a part of the metaverse revolution, the change only becomes more and more concrete in front of our eyes while also adding to the hype around it.
Researchers say that Metaverse real estate was one of the highest trending topics of discussion among investors in 2021. The price of land in this virtual reality is expected to rise even higher in the year 2022.
As you can see, NFT artworks have widened their horizons multifold. While it does not remain secluded to the categories of simple gifs and jpegs, gamification is the next step that many developers are working towards.
Several game publishers have already entered the blockchain space where they have become a part of community-owned branding and tokenization of gaming facilities. The ‘play-to-earn’ models in games are the most popular category currently.
Undoubtedly, there is a lot of work that remains to be done on NFTs. However, it is crystal clear that it is a nascent technology still in its early phase preparing to change the internet as we know it for the better. The rapidity with which it is setting its foothold in the world makes it apparent that 2022 is set to become another significant year for this upcoming technology. Experts believe that gaming NFTs are going to rule the industry as other niches slowly thrive.
In conclusion, NFTs make a very good example of targeting the human need to have ownership of something that is exclusively theirs. This makes it one of the most irresistible entities in the world of investments. Moreover, the remarkable changes that they have brought about already are indicative of how important a development it is in the field of internet commerce.