Future Predictions of NFTs: The Non-Fungible Token is Not Dead
In the article for Beincrypto Valentina Drofa, the founder and CEO of Drofa Comms, shared her vision on what awaits NFT in the future.
Non-fungible tokens became increasingly popular in the crypto community in 2021, being the reason for creation of multiple projects making and selling NFTs for mind-blowing prices.
Many are wondering about the viability of non-fungible tokens as a financial instrument and the sustainability of NFTs’ value. Thinking about this we shouldn’t mix up the technology and its application. In essence, each NFT is one of a kind and each token issued by a particular smart contract has a unique identifier. So NFTs cannot be forged. That makes the range of potential applications much wider than the infamous pixelated images.
Future predictions of NFTs: Metaverses
Blockchain metaverses attracted a lot of attention In the second half of 2021. A metaverse is a virtual reality, whether a digital copy of physical reality or a completely different, imagined world with its own properties, idiosyncrasies, and inhabitants. NFTs became their central conceptual element, with various services and assets being linked to them within metaverses. Numerous new game projects created their own metaverses, where players can train their characters, go on raids, and explore distant outer-space worlds, all while earning prizes in in-game currency and various NFTs. When it comes to artifacts and various gear available to players in-game, they are all represented as NFTs on blockchains. And that is a principal detail in the economic model of these games. In my opinion, this application of NFTs could serve to further develop NFT technology and integrate them more fully into our lives.
NFTs in Entertainment
Many famous people in the art world use NFTs to monetize their works. For example, the American rock band Kings of Leon became the first musical artist to release an album as an NFT. It showed how NFTs could be used in the music industry, which is especially relevant to performers who voice their dissatisfaction with the royalties they get from people listening to their songs on streaming platforms. Selling the album via NFT makes the artists themselves the primary beneficiaries, since the lion’s share of the money received from selling the album would go to them. This application of NFTs may become more widespread in the entertainment industry, allowing users access to various services by way of NFTs.
Where Are We Headed?
It’s worth admitting that we’re currently observing a phase where the NFT market is rapidly increasing in value and people want to make a quick buck. That is why the focus tends to be on the simplest profit-making schemes, rather than the tokens’ technological potential. This is similar to what happened with ICOs, where we saw many scam projects along the lines of Bitconnect, but in the end, there were very few successful projects from the ICO era still operating normally to this day. That is why I’m convinced that NFTs will face something similar: the wave of hype will die down, followed by a practically-oriented development of the technologies associated with NFTs.
Read the full version of the article on Beincrypto.