WHY NFT IS THE FUTURE?
“Why NFT Is the Future” is a popular question I see people asking in the digital world and companies. NFT stands for Non-fungible token, and it’s a new technology every artist, gamers, investors, and financial expert should take advantage of.
NFT is decentralized commerce with increased transparency. It works using blockchain technology and each transaction is recorded, giving buyers digital provenance that can’t be altered by anyone. NFTs allow creators and buyers to trade without the involvement of intermediaries, maximizing their earnings and freedom.
Non Fungible Tokens have begun disrupting the digital world and industries, starting from art to gaming, and investing. Big players like Twitter, Meta (formerly Facebook), and Reddit that see opportunities in this technology have started working on NFT projects.
But how will NFT change the world? What problem do NFTs solve? Is NFT a good investment? These questions and related ones are what I’ll discuss for you in this article. Without further ado, let’s delve in
What is NFT?
NFT stands for “Non-fungible token” and it’s a unique digital asset used to verify the ownership of a property. NFT could be a piece of art (canvases, drawings), music, videos, or games. It could also be a digital file (PDF), a tweet, or a Brain downloaded turned into an Artificial Intelligence.
How Do NFTs Work?
NFT works using blockchain technology. Each transaction on NFT is transparent as it’s recorded on a ledger over multiple networks to ensure manipulation of digital assets is prevented. In other words, when a creator mints a digital asset, the process generates a cryptographic token that contains the asset’s signature of the wallet that created the token. This serves as evidence of purchase for future collectors.
Now that you’ve learned the definition of NFT and how it works, let’s talk about how it’ll impact the world in the future. But before we do that, let’s look at some companies that have started integrating NFTs into their system.
Companies and Celebrities That Have Started Integrating NFT into Their Systems
Below is the list of companies that have started integrating NFT into their systems:
➢ Meta formerly Facebook
➢ Nike
➢ Coinbase
➢ Visa
➢ Warner Bros. and lots more.
9 Reasons Why NFT Is the Future
NFT has come to stay. It has come to revolutionize the world and change who can create, access, and how someone can buy art and other collectibles. Below are 9 reasons why NFT is the future:
1. Decentralization of Art and other collectibles
The digitization of art and other collectibles has reshaped peoples’ perceptions about NFT. With NFT, people can view NFT Art digitally anywhere anytime without being physically present. Connect your mobile phone or computer to the internet and you’re good to go.
In advance, you can use virtual reality to visit and explore galleries, expeditions, and museums in the comfort of your room. This will rid off transport costs.
Also, since NFTs use blockchain technology (decentralization), creators can communicate directly to their fans without being censored. Artists can also distribute their assets online without involving intermediaries. Plus, they can receive support from their fans, improving their careers.
So if you’re a creator that still doubts why NFT is the future, the above explanation should reshape your thought.
2. Disruption of the Game Industry
The world of gaming is another sector that NFT will disrupt. Gamers love being regarded as an icon in the gaming world. They love sharing their personal history, achievements, stories, communities, status, and digital identities on the gaming platforms. To achieve this, they spend hundreds to thousands of bucks to buy digital items including outfits to give their avatar a befitting look.
Some even buy enhancers to improve their gaming performance, as well as unlockable content to have an edge over their competitors. But instead of spending such huge monies to achieve their iconic dream, NFT has a better option. NFT through its Play-to-Earn model can reward gamers with digital assets for their contributions to the ecosystem. Players can sell these NFTs if they wish.
Another benefit for gamers on NFT is that they can earn NFT crypto in conjunction with the game developer. This developer-gamer relationship is a good innovation compared to the traditional model where gamers spend more monies before being regarded as an icon.
The unique feature of the gamers’ digital asset is that the player owns the asset forever and it’s not controlled by any game publisher. Even if the game doesn’t exist anymore, the NFTs remain valid and can be used in other virtual worlds. Are these benefits alone not enough to prove why NFT is the future? Imagine a technology reward you with a valuable gift while using it to play a game.
3. Social Impact
NFT can also influence the future by creating an NFT identity and ecosystem that recognizes, celebrates, gamifies, and rewards positive social impactors for their environmental good deed.
For example, Leyline, a non-profit organization founded by Jeremy Dela Rosa, aims to create a sustainable NFT identity and environment for users on her platform based on their good deeds. These NFT collectibles will capture the story of the award winners and memorialize them. The
Non-fungible tokens can be displayed in the winner’s personal art gallery for people to see.
The good thing about this NFT collectibles award is that it can inspire other people to engage in philanthropic acts. Of course, people will emulate the suit since they know they’ll be rewarded with NFTs and other physical goods. What a reasonable way of bridging the physical world with the digital world.
Another unique feature of Leyline organization is that they use blockchain technology in their decisions. Winners are voted for by members, and decisions are made collectively. This model is laudable compared to the traditional impact where winners may emerge due to the influence of powerful brokers.
Leyland meetings are also held in public, showing full transparency in their deed and act.
1. Revolutionize Real Estate
Disruption of real estate by NFT is imminent. This is because NFT can fix most flaws attributed to the traditional real estate model. To begin with is its ability to automate countless paperwork, eliminate intermediaries, and reduce extra costs while acquiring property.
Also, fraud cases such as contracts, certifications, claims of history issues, and ownership can be solved by NFT because NFT stores data permanently in the blockchain. Again, assets are made publicly accessible on NFT making them difficult to alter.
It should be noted that any virtual asset created as an NFT can also enjoy this level of security.
1. Increased Diversity and Representation and Gives Equal Opportunities to Participants
The digitization of art and the rise in NFT is shifting key players and influencers in the art space, making it the world’s unique representative.
This phenomenon has made it possible for creators of different backgrounds to access and gain recognition in the art space.
NFT gives artists the opportunity to have the idea and experience what’s happening in the art world outside their localities. With this, creators in a particular location can have a worldview of art, get inspired, and improve their art since art can be shared online.
Nevertheless, the art industry also needs to focus on the marginalized creators within the art world and elevate them. Cryptocurrency education and other rewards that accompany art should be brought to these people.
1. New Methods and Media
Since NFT came into the limelight, a lot of advanced social media and apps have been developed. And more are still coming.
For example, media and services such as streaming, bio-engineering and AI safety protocols, VR, and AR are widely used now. Artists like Jordan Wolfson and Marina Abramović have begun creating digital paintings and making them accessible through VR and AR.
The good news is that this new technology comes with an imaginative redevelopment, and technology will keep growing as more people are getting involved in the tech space. Another benefit of VR, AR, and other advanced technology is that the experience generated in using them is enjoyable compared to the physical object.
2. Increased Freedom and Independence
Another reason why Non-fungible token is the future is that it’s free from censorship and regulation by the government. Creators are independent and have the freedom to create NFT contents of their choice without seeking agency permission. They can connect directly with their fans, cutting off agencies that may ask them to compromise their creative vision for the sake of standard before approval.
This act is common in strict religious or African nations where government or relevant agencies review art before approval. Of course, freedom from agencies doesn’t mean artists will not be guided by art curators and advisors. The point of NFT is that creators will be able to create their choice of artwork and share it with their fans knowing that they’re ready to pay for the artwork.
While this benefits the creators, buyers can also benefit from NFT. Buyers have access to different artworks where they can choose their choice but not from recommended options.
3. Patronage and Fractionalization
The future lies in NFT because it can alter the patronage of creators. Since transactions on the blockchain are direct, collectors, fans, and supporters can support their favorite artists directly. Apart from this, NFT ownership permits fractionalization in which fans or collectors can share future earnings on the work of the creators. This is a symbiotic relationship, “a win-to-win deal”.
NFTs like blockchain technology also allows an artist to receive a royalty on any future sales of their assets.
1. Secure Investment
Lastly, NFT allows collectors and investors to see the assets they’re trading and confirm their authenticity before purchasing. The authenticity of the asset can be validated through the unique identity assigned to each asset on the blockchain.
Confirming this assures the buyers and gives them a sense of safety because their assets cannot be falsified.
Limitations of NFTs
Below are some downsides of NFT, although they can be sorted out with better systems and technological advances:
❖ The NFT image file formats may get corrupted.
❖ NFTs contribute to global warming and melt Greenland.
❖ The cryptocurrency used to create and trade the NFT may go into extinction.
❖ Websites where non-fungible token assets are stored maybe shut down resulting in loss of assets.
❖ Every NFT collectible must be backed with a valued material that must be universally acceptable.
❖ Minting of NFTs requires payment known as the “gas fee”.
❖ NFTs consume a lot of electricity since they use blockchain technology.
❖ NFT may be incompatible in cross-chain and some apps.
Frequently Asked Questions
Below are the questions I see NFT users asked online:
● What would happen if my NFTs application gets shut down, will I be able to retrieve my data?
Yes, you can. Your data will remain intact on the blockchain thus; any new decentralized apps can take its place.
● What Are the Things NFT Can Buy?
NFT can buy stuff such as arts, music, videos, files, animated stickers, and lots more.
● Can I Buy Someone’s Teeth as an NFT?
No, you can’t although there have been some attempts at connecting NFTs to real-world objects.
● Why Is NFT So Special?
NFT is so special because of its unique feature, plus it’s backed by the Ethereum blockchain.
● What Is the Best NFT Marketplace?
You can buy NFT on different platforms and marketplaces including OpenSea, Rarible, Grimes’ choice, InfiNFT, and Mintbase.
You can also buy it on Nifty Gateway among others.
● Can I buy NFTs with Cryptocurrencies?
Yes, you can. Most marketplaces accept Ethereum to trade for NFT while other cryptos are also gaining acceptability.
Note that the creator of the NFT asset can request any currency they wish.
● What Are NFT Used For?
NFTs are used to acquire assets and collectibles. This could be a game as in the case of the first CryptoKitties that allowed users to trade and sell virtual kittens for a whopping dollar.
● Is NFT The Future?
Yes, NFT is the future comparing the benefits it comes with.
Conclusion
Now, you can see why NFT is the future. NFT has come to stay because it’s fixing traditional models’ flaws and making the digital world easier for creators of diverse backgrounds to enter. NFT is also moving beyond art and collectibles as it represents diverse sectors, including the financial system.
Furthermore, Non-fungible token gives creators more control over their works and allows them to reach their fans. It also increases artist earnings because no intermediary is involved in each transaction. The transparency and security feature of blockchain technology exemplified by NFT also makes creators and buyers trust the system.
