Non Fungible tokens or NFTs as they are commonly known have taken the world by storm. Although they have made quite an obscure appearance way back in 2016, they have crept into a territory of undeniable prominence ever since the second quarter of the year 2020.
It is not surprising for people to see quirky art pieces sell for more than $300,000 as NFTs. The NFT marketplace is considered to be the Amazon equivalent of the new digital Web3 world, and some NFT marketplaces have been successful in creating records even in a niche market.
It is expected that digital art will be the spearhead of the NFT revolution. 50% of the world’s premier artists and artwork will be recorded on the blockchain as NFTs in this decade.
It would not be surprising to see magnet galleries and museums that present authentic digital art with verifiable attribution for the creators. This verifiable attribution also results in better-streamlined revenue without compromising on the authenticity and without making intermediaries necessary.
While digital art might be one of the many manifestations of this new avatar of blockchain technology, there have been multiple use cases that skyrocket the utility of NFTs into the most uncharted and challenging territories.
To understand what NFTs are about, we will need to understand the concept of possibility. This will lead us into the knowledge zone of knowing the essence of non-fungibility.
A fungible asset is something that can easily be broken down and exchanged without any considerable loss in its value. The best example we can think of is a $100 bill which can easily be exchanged for another bill of the same value or smaller bills that add up to the same value.
On the other hand, you cannot replace the original Mona Lisa hanging at the Louver in Paris to be replaced by another printout of that artwork in the same dimension.
This is what makes non-fungibility an attractive proposition because whatever is unique can now be easily attributed, thanks to the immutability of blockchain technology. Come to think of it, NFTs have helped address one of the biggest plagues of the digital world which was about counterfeits and first copies.
It is high time we elevated ourselves from the spectrum of art and looked at NFTs from a higher dimension. When we observe from this perspective, we will be able to find a lot of exciting opportunities that are made possible by NFTs.
NFTs in gaming
Gaming has always been looked at as a lucrative avenue for people to make money. However, the concept of making money was external to the game and not built within the game ecosystem. With the introduction of NFTs in the gaming world, it’s quite possible that games can become dependable revenue opportunities.
A lot of people in countries like the Philippines, Vietnam, and Thailand have been depending on such games for their livelihood.
Another advantage that NFTs bring to the world of gaming is that it renders obsolete, the pain of losing assets in the game once the game becomes defunct. This would mean that large gaming ecosystems can be built where there is interoperability and interdependence, so the asset that you purchased for improving your gameplay becomes not just an expense but an investment that you could sell on NFT game marketplaces.
NFT for medical records
Medical records are considered to be the most powerful and valuable data assets. However, there are a lot of instances of medical data being used without the consent of the patient for medical experiments and drug research.
With the NFTs coming in place, it is not possible for the patient to “permit“ the data to be used for medical research and also get rewarded for it. The best part is that with blockchain technology securing data, possibilities of data breach and leakage become almost impossible, leading to extreme security and transparency.
NFTs for digital twins
It is speculated and rightly so that everything except for what you can eat would have a digital twin sometime shortly. What makes the concept of digital Twins interesting is that it has a very dependable and tangible connection to the physical representation. This is not something like Farmville where you just purchase land and do not do anything out of it in the physical world.
We have already seen people purchase lands on virtual earth and the virtual moon. We have seen the digital avatars interact with the digital author of other people in the magnet. Once the ecosystem is properly set, it will not be an exaggeration to say that we will have people living another parallel life in the digital dimension.
NFTs for streaming
“streaming“ was not a familiar town for a lot of people a couple of decades ago. Today Kshema the concept of downloading some media to our native device seems a bit too obsolete! If we were to extrapolate this habit with the way technology is advancing, we would soon have NFTs for streaming.
NFT marketplaces will start selling media and creations exclusively to those who are ready to pay for it, making it a rewarding experience not only for the user but also for the creator because all the intermediaries that consume money in the name of “facilitation“ and “exposure“ will be rendered obsolete.
NFTs for finance
When something as prominent as NFTs attracts people to spend millions of dollars, it is hard not to be unnoticed by the world of finance. When we are looking at people who might not even have $100 in that bank account but might have more than $1 million in their cryptocurrency wallet, we should be looking at possibilities to capitalize on the investment that they have in that space.
It is expected that NFTs could solve the problems involving long supply chains in finance where data gets lost or the final cost of the process becomes extremely exaggerated because of the number of steps.
The fact that we see a lot of venture capitalists funding NFT companies is a resounding testimony to the relevance of NFTs in the era of finance soon. Paragraph when you have big names like Lisa entering this space by investing $150,000 on an NFT, you should start taking note of the impact of NFTs in the world of finance.
As of now, a lot of people are looking at NFTs as short-term investments where they could buy, look at a 10X growth, and sell off the digital asset. Little do people look at NFTs as a manifestation of technology that is expected to solve all problems that people face.
Once people start opening up that perspective, we will soon be looking at companies that are not centered on NFTs but are centered around solving problems and benefiting people with NFTs as the means.
The future is already here with a lot of companies looking at medical NFTs and financial NFTs. Any company or investor that is early in this game is bound to make a big profit if they are prepared to undergo the legal uncertainty that is plaguing the world of NFTs and crypto right now!
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