The Future Of NFTs – Utility Or Art
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NFTs have wreaked havoc on the digital world, as well as businesses ranging from art to gaming to finance. On the other hand, non-fungible tokens have yet to realise their full potential. NFT projects are being worked on by Twitter, Meta, and Reddit and investors are betting large on NFTs, and new NFT firms are popping up every day. So, how do NFTs fare in the future? What will be the next industry to be disrupted by them? What NFT developments will define the coming years?
The future of NFT space is utility-based NFTs. Outside of owning a piece of artwork, an NFT assigns a use to the digital asset. A utility NFT can be a real piece of art that corresponds to the NFT that was purchased; it could also be the exclusive entrance to an event, in-person memberships, or future usage in the digital world (think within a game).
Some examples of utility are where you may buy an NFT and obtain hand-painted artwork; some offer exclusive events, use in the digital realm (think gaming), or as a component of a real-world enterprise (like the WOF Labs project).
Here Are The Top Upcoming NFT Trends Shaping The Future
- Play-To-Earn Gaming
The gaming sector has a lot of promise with blockchain technology and NFTs. Axie Infinity and Blankos Block Party, for example, are making headlines with their play-to-earn (P2E) models, which pay gamers actual money. They’ve exploded in popularity in the last year, especially in developing countries, because who doesn’t want to make money playing video games?
- The Metaverse
But there’s a new trend in gaming that goes beyond play-to-earn and has far-reaching repercussions beyond traditional gaming: the metaverse.
If you’re unfamiliar with the metaverse, it’s a digitally shared place that blends virtual and physical reality.
The metaverse is being heralded as the future of online interactions and the next stage of the internet by many. Consider the metaverse to be a digital version of the real world. You can talk to other people, explore, shop, and complete challenges. The same non-fungibility of assets that we experience in the actual world is enabled by NFTs in this area.
Scarcity and utility are the factors that influence asset value. NFTs also allow developers to incorporate both scarcity and utility into the metaverse, allowing for the development of a unique economic system.
Decentraland and Sandbox, two leading metaverse startups, are leveraging NFTs to tokenize everything from usernames to in-game wearables to real estate. Twitter (Meta) and Facebook (Meta) appear to be planning to follow suit.
- NFT Ticketing
Several firms, such GET Protocol and Centaurify, are introducing NFTs to the realm of tickets. The ability to create tickets as NFTs allows you more control over the resale market, more secure ticket storage, and the ability to view tickets as digital treasures.
NFT ticketing goes even further. In the future, NFTs in ticketing will provide buyers with lifetime value, exclusive access, and additional incentives. For instance, customers would receive two types of value: the opportunity to attend a live entertainment event and an exclusive and personal digital asset.
- Avatars & PFP NFTs
NFT initiatives including profile pictures (PFP) and avatars are among the most successful in the history of NFTs. With the publication of the now-famous CryptoPunks in 2017, the stage was set for these projects.
PFP NFTs have evolved into much more than a collection of JPEGs. They serve as digital identities for thousands of people, allowing them access to and membership in extremely active networks.
Many of these groups provide members with perks such as access to private Discord chat rooms and the ability to own the photographs they buy. Members of the community will embrace you with open arms, following and talking with you after changing your Twitter PFP to an NFT icon and writing about it.
Twitter has recently made a huge announcement about making NFT PFPs verifiable. Any NFT can now be used as a Twitter profile photo. Twitter’s new solution, on the other hand, would allow users to validate their NFT ownership by displaying a small Ethereum checkmark next to their NFTs.
- AI NFTs
Artificial intelligence (AI) is the next significant disruptor in technology, following blockchain. It’s no surprise that the two are being blended.
- AI-Generated Art
AI-Generated Art is any artwork that is created through the use of artificial intelligence. The advent of NFTs has raised awareness of the value of digital assets, and new AI initiatives are spitting out new artworks and minting them as NFTs daily.
Intelligent NFTs are the second significant junction of NFTs and AI (iNFTs). NFTs with an AI personality is known as iNFTs. They can converse with you, they can learn new things and change their personalities, and they are blockchain-based.
- NFT Streaming And Community-Owned Entertainment
NFTs are frequently credited for ushering in a creator economy. Thousands of artists have been allowed to make and sell their work on their terms. However, the NFT creator economy’s promise extends far beyond empowering visual artists and transforming the art industry.
- NFT Music
Consider this scenario: a favourite artist releases a new song that you believe will be the next great hit. They’ve minted it as a non-fungible token (NFT), fractionalized it, and are selling shares in the song through Royal. You purchase a third of the music. The song gets viral a month later. It’s being streamed by everyone, TikTok influencers are dancing to it, and Coca-Cola is planning to incorporate it in a new commercial.
You’d profit from the song’s virality, together with the musician who created it. You’d be able to play the music at parties and brag to your pals about being a co-owner. You might even be able to recoup your investment by selling your portion of the tune.
This allows fans to invest in and support artists, and it also allows artists to give back to their most ardent supporters by sharing revenue—if and when the song earns money.
- NFTs And Finance
The sales volume of NFTs was predicted to be $10.7 billion in the third quarter of 2021. That much money isn’t spent without attracting the attention of the financial community.
Although the NFT market is worth billions of dollars, NFTs are speculative and non-fungible assets. You can’t generate money off NFTs by simply buying and holding them, as you do with real estate.
For the NFT economy to function and for investors to profit, they must be sold and moved across the market.
This is now possible because of new services that use NFTs as collateral for loans. This, like fractionalization, allows NFT investors to recover liquidity from their investments while maintaining ownership.
Let’s pretend you have a million-dollar NFT in your digital wallet but no cash in your bank account. You come upon an investment opportunity that you believe would provide consistent profits, but you refuse to part with your hard-earned NFT. Drops, for example, allows you to take out loans using your NFTs as collateral. Consider it similar to a mortgage: you use the asset you possess to create liquidity.
Any blockchain experiment’s future is unknown. NFTs, on the other hand, are here to stay, according to experts, and will continue to extend beyond the fields of NFT art and gaming, especially if affluent investors continue to engage. NFT’s expansion has also been aided by features that can serve as proof of ownership, assign social status, offer exclusive access, manage licencing, and verify authenticity. In the same way that Bitcoin allows you to be your banker, it allows you to own your products.
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