New-age technologies that are witnessed today are transforming the world in several domains. The future that the brilliant minds imagined in the past is here and is leveraging the standards of living for the people. IoT, AI, AR/VR, and more are becoming a norm now and the Internet is ready for a new outlook with the introduction of Web3. Also, under the idea of the decentralised digital ecosystem, blockchain, metaverse, and cryptocurrency are gaining popularity among the masses. They are now well-versed in owning digital assets through immutable on-chain verification, smart contract, peer-to-peer transactions, etc.
One such digital asset is revolutionising digital communication and asset ownership — NFTs. They are taking the world by storm and sparking a digital art era that has enabled artists to offer their creative assets through digital media without the hassle of middlemen. Although there are still a few people who think NFT is a bubble and others consider that it is here to stay for a longer period of time. Despite that, there is a huge amount of cash flow draining in the domain and the surging volumetric sales represent that NFTs are going to be trendsetters for future generations.
NFTs and Web3: A technological connection
NFTs are soon to become a part of the digital economy as it is being uplifted by several artists, investors, and traders due to their uniqueness, originality, and elevating demands. It has captured the attention of an untapped market where it was significantly challenging to get out there and present the art for people to recognise. With the digital transformation of the internet, Web3 is going to bring a steady state of data ownership for the common people and there will be several marketplaces where artists could present their NFTs. As the internet will be decentralised at several levels, the owners won’t have to worry about cyber theft, data breaches, information control, and disruptive advertisements.
A promising decentralised future for digital assets and identities
Throughout history, artists had to sell their art via middlemen and had to give away their hefty profits. With a decentralised digital ecosystem, they could deliver their pieces of art directly to the netizens without any 3rd party commissions or permissions, making it profitable for the NFT holders along with a sufficient supply of liquidity. Web3 will also efficiently reduce the gap between physical and digital, and more people will be able to adopt social connectivity. NFTs can also be a part of the digital identity which reflects the real-life information of a person. As an NFT, complex addresses and wallet information can be integrated to use with other applications. This use case takes the NFTs beyond the idea of being just a financial asset. The complexity of the Blockchain can be reduced and the end user experiences a simpler digital asset with the power of customisation, value, and freedom of trading in the market of choice, regardless of any market control.
A densely connected online community and events
Digital communities are becoming significantly popular due to the people who are in close proximity and have like-minded perspectives. Regardless of the distance, the Internet has led us to connect with several people at a time across the world. The first use case of the NFTs was to act as a ‘digital pass’ to these communities. NFT profile pictures are also becoming common among community joiners as prerequisites. They also provide immutable proof of ownership on a blockchain, which solves the issue of forgery or identity theft. Several events can be organised through these communities where several users can connect and present their NFTs to be exchanged and promoted. In some cases, NFTs can be access keys to master nodes.
Gaming assets to become exchangeable
Cloud technology has enabled the future of gaming and players are significantly connected on a broader scale regardless of efficient hardware. In-app purchases will be facilitated by the NFTs and can be exchanged within the player community enabling the multi-ownership provision. These can be also used as in-game quest-winning items for the players and also be traded against the cryptocurrencies. NFTs while integrated with blockchain games will create in-game economies which are valued according to the playtime. Earning a high level can also be rewarded as a value addition to the NFT owned by the player.
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All things considered
The successor of the current internet has the potential of transforming the current decentralised market. It will efficiently cater to the needs of the netizens in terms of facilitating decentralisation, privacy, and freedom of information. NFTs markets will be developed in a manner that they are valuable and have a myriad of applications which makes them stand out from the crowd. Fractionalisation of NFTs is also becoming a trend now which orchestrates liquidity in the market and creates accessibility for people from diverse backgrounds. Along with digital assets, physical assets and content also tend to become tokens, giving a huge opportunity to creators and influencers.
The author is CEO and founder of Gather Network, a Dubai-based layer-1 blockchain platform.
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.