Will NFTs be the future? Yes. As they are today? Not.

Charlie Taylor

The NFT market has been growing rapidly and gaining more and more space, in 2020 $95 million were traded, in 2021 the market moved $25 billion, and it is expected that in 2022 the value will exceed $35 billion. The question that arises after seeing these numbers is: does this market have room to grow even more? Yes, but I believe not as we know it today. As with all innovative technology, the first use cases are simple and easy to apply and adopt. In the case of the NFTs market, the first use cases were PFPs (profile photos), an easy, fun and simple way to understand a digital property within the blockchain, but it takes very little advantage of what the technology can offer. I believe that, soon, the most complex use cases will gain strength and PFPs will lose ground, leaving only the largest projects, for example the Bored Apes Yatch Club, which has already become an icon of this technology. Complex use cases with a brighter future are: One of the most obvious applications, and the one that is closest to becoming mainstream. NFTs offer game creators a new way to expand their brand and a new way to generate revenue, while players are given more incentive to keep playing by actually owning the characters or in-game items. One of the extremely positive aspects of this market is the way to trade items within the game, making it possible to increase the value of items, which can have a different degree of rarity. Not to mention that NFT owners won’t have to worry about scams, as there are no intermediaries involved; transactions happen instantly via blockchain. This opens up unprecedented possibilities, such as trading chests, weapons, skins or other equipment, regardless of the release of a new version of the game or a new console, without losing the items you had. The logic is very similar for the Metaverse, and several games will use this immersion universe. So all your items like clothes, houses and land will be your digital properties. For example, I already have some virtual lands and game items in NFT that allow me to apply this logic. An interesting example of a game is Big Time, which assembled a team of professionals who came from large traditional game franchises such as Fortnite, Call of Duty and EA Sports, to build a high quality game based on NFTs. An example of Metaverse is Decentraland, which today is one of the largest platforms on the market.

Tickets and Tickets

Since all transactions made on the blockchain are recorded, selling tickets via NFT makes a lot of sense as it solves fraud-related issues and reduces paper usage. Purchasing a ticket included in the event’s original smart contract guarantees that it is original. Another positive point is the possibility of limiting the number of “mints” per wallets, which can hinder the activity of scalpers who buy in large quantities at ticket launches. In the end you keep the NFT of the souvenir ticket, being able to turn it into a collectible item in the future and sold to collectors or fans.For example, this year I participated in the Ethereum Rio event and I have an NFT in my digital wallet as a souvenir to have participated.

Item Authenticity

Leveraging the same benefit of blockchain ledgers, physical items will also be able to be tokenized to ensure the purchased product is authentic, making it easier to sell high-value items such as artwork, collectibles or antiques.

Real Estate Sector

The real estate market has great potential for the use of NFTs. They can be used to transfer land titles, guarantee royalties to the developer for each future sale, provide proof of ownership, and even track changes in property value over time using blockchain to query transactions. NFTs can be used in real estate to simplify and facilitate transactions, even create home rental services in a decentralized way. Imagine being able to consult everything about the property you are buying in just a few taps on your cell phone. Finding out when the property was built, who owned it first, what modifications were made, and everything before you buy it. For this to happen en masse, the market still needs to mature, but we already have some examples such as the real estate market and environmental preservation.

Licensing and royalties for musicians

Another underexplored application for NFTs is music licensing. The first benefit is the change in the relationship between artists and their fans. There is now the option of a direct transaction between the people who make the music and the people who listen to it, not necessarily needing an intermediary like a record label, distributor, streaming platform or social media platform involved. This implies the potential to be a more profitable model for the artist, allowing a closer relationship with their fans, as NFTs can be linked to benefits such as concerts, band meetings, exclusive clothing and gifts, and may even grant the owner exclusive rights. about the music. This means that a music NFT can provide fans with a unique sense of exclusive access to the artists they love, and take fan loyalty to a whole new level.

So what will become of the famous PFPs we see today in the future?

In my opinion, 90% will lose their value, but the so-called “blue chips,” like Bored Ape Yacht Club and Crypto Punks, will continue to have great added value, due to a few factors. They built a giant community around the project, represent a cultural and artistic shift and mark a period of a digital generation. When someone asks how a drawing of a monkey can be worth so much, we can compare it with other artistic movements that have already been criticized, but that are now part of history, such as the famous work “Cans of Campbell Soup” by artist Andy Warhol. I wanted to know what is your opinion about the market, are you already preparing for this new reality? NovaDAX is full of news! One of the largest cryptocurrency exchanges in Brazil has now ZERO withdrawal fees in real! NovaDAX also counts zero fees for Bitcoin transactions and more than 110 listed currencies, with cash withdrawal available and high liquidity. Cryptocurrencies with the best rates on the market! Simply activate the free Novawards program and enjoy reduced rates of up to 75%. Discover the NovaDAX Card and order yours now.

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