Non-fungible tokens, or NFTs, are taking over the world. Digital tokens are not new and have been around for quite some time. Their popularity, however, skyrocketed after artist Beeple's piece, Everydays; The First 5000 Days, sold for a whopping $69 million in March. Many other NFT items have since been sold on various marketplaces and platforms.
Artists, musicians, influencers, and sports teams can earn from digital assets that would otherwise be cheap or free, thanks to NFTs, which employ blockchain technology to create an official copy of digital property. NFTs have become popular with people all over the world because it is now easy to convert a variety of goods into digitally valuable products.
This new type of digital asset is no exception to blockchain technology changing and redefining industries left and right, but it raises a number of questions across industries. What is the outlook for NFTs? How can we use them to make the world a better place? What kinds of opportunities will this type of technology create, and what will be the knock-on effects?
As more applications for the technology are developed, the popularity of NFTs shows no signs of waning. We've taken a snapshot of the latest and hottest trends that we're likely to see more of in 2022 to give you an idea of where the market may trend.
1. DIGITAL ART COLLECTIBLES:
NFT collectibles are perhaps the most common type of NFT right now, and specifically a popular trend. Digital assets can be used to prove ownership in addition to providing a new way to collect and display items. This could be used to prevent fraud or counterfeiting while still allowing collectors exclusive access to rare items.
Through NFTs, any artist can broadcast their work or sell it directly to interested buyers. This allows them to get the best price for their artwork. Through smart contracts, artists can also profit from royalty payments in NFTs. Recently, the value of artistic content and NFTs has skyrocketed, with some people earning millions of dollars on single original pieces.
Image : From mr-block.com
2. NFTs AND THE METAVERSE:
NFTs are the bridge to the metaverse, and facilitate identity, community and social experiences in the metaverse. Through NFTs, users can have complete control over their digital assets in the Metaverse. Blockchain technology provides immutable proof of ownership, which is the foundation of these virtual worlds.
For example, if you purchased a large amount of LAND in Decentraland, the Metaverse would provide you with proof of confirmation in the form of NFTs, which the blockchain would guarantee.
NFTs are also useful in the Metaverse for creating exclusive environments and improving digital community and social experiences.
Premium NFTs are used to gain access to the wealthiest and most affluent communities in the digital world, as well as exclusive perks, staking rewards, and other high-end collectibles.
The Bored Ape Yacht Club and CryptoPunks collections, for example, provide select users with access to premium communities with password-protected content and even offline access.
The metaverse and NFT
3. PLAY - TO - EARN GAMES :
One of the most popular applications for NFTs is in gaming. Games that incorporate NFTs can create a more dynamic and interactive experience for players.
Games like Gods Unchained (GODS), Axie Infinity (AXS), Genopets (GENE), Illuvium (ILV), and My Neighbour Alice (ALICE) made waves in 2021 with their play-to-earn (P2E) models that paid gamers real money. Players are free to collect, trade, or sell them as they see fit because they have complete ownership of their NFTs. Unlike traditional in-game assets, which are locked to the platform from which they were obtained, NFT assets can be transferred to NFT marketplaces and sold for cash or traded for other assets.
4. NFT REAL ESTATE :
The real estate industry is another exciting application for NFTs. We can use blockchain technology to create a new type of property registry that uses NFTs as proof of ownership. This would allow users to buy, sell, or lease properties without the need for a third party, reducing the cost and time required to complete transactions.
NFT Real Esate
5. NFT MARKETPLACES :
Markets are one of the most obvious applications for NFTs. Blockchain-based marketplaces can offer trustless transactions and lower fees in addition to providing a secure way to buy and sell goods. This has the potential to change the way we shop online by allowing for more direct interaction between buyers and sellers. One of the emerging decentralised NFT Marketplaces which is community based is HelixMeta. HelixMeta is a relatively new NFT marketplace that’s fully decentralised. It’s built on the Ethereum blockchain, similarly to OpenSea. However, HelixMeta has many unique features that set it apart from its main competitor, OpenSea.
In conclusion,NFT ownership is unquestionably on the rise, and it is rapidly changing the way we deal with digital art and the blockchain. As the technology progresses from basic and experimental use cases to more meaningful ones, the future of NFTs is brimming with possibilities. Even as you read the conclusion of this article, new NFT projects with novel applications are emerging.
If you want to participate in this phase of the digital and financial revolution, the first step is to visit our blog and read about NFTs and how you can position yourself to take advantage of it.
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