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Saturday, October 1, 2022

How NFTs Will Change The World Next

Non-Fungible Tokens witnessed an unprecedented boom last year. From collectibles to games to real estate, NFTs have made their presence known and are all set to lead the way to the development of Web 3. Unrestricted to any particular industry, NFTs have found application in several sectors from food to fashion. Several celebrities, too, have launched their own NFTs to stay connected to their fans. 

While NFTs have been around since 2014, it has only been in the past couple of years that their popularity has skyrocketed. With this being the case, several NFT trends have been predicted to come into the picture by the end of 2022. Here are 5 ways in which NFTs are set to evolve this year.

Big Brands jumping on the bandwagon

Seeing how NFTs are increasing in popularity by the minute, it stands to reason that big brands and companies would want in on the action. Fast food giants like Taco Bell and McDonalds have already minted and sold NFTs of their product artwork. The fashion industry, too, seems to be at the forefront with brands like Gucci and Louis Vuitton releasing their own line of digital collectibles. 

From here, there’s nowhere to go but up. Even The Grammys this year launched an NFT drop to celebrate the 64th Grammy Awards Show! As far as India is concerned, Bollywood stars and cricket legends were among the first to boost their brands using NFTs. In fact, according to Deloitte, cinema and sports NFTs alone will rake in around $1 billion in the near future. With industry titans already employing NFTs in their branding strategies, it is only a matter of time before other brands realize the untapped potential of NFTs. 

Fractionalization of Art

For those looking for relatively more inexpensive NFT projects to invest in, fractionalized art NFTs are quickly becoming the go-to. But first, what exactly is a fractionalized NFT? Picture it this way. If each NFT is a pie, then a fractionalized NFT is one slice of it. This way more people can get a slice of the metaphorical pie, making the NFT marketplace more inclusive and accessible. 

So how does it work? NFTs are usually created on the Ethereum blockchain using ERC-721. In contrast, the ERC-20 standard is used to create fungible tokens. Since fungible tokens can, by definition, be exchanged for another of equal value, a smart contract can be generated that will link several ERC-20 tokens to one whole ERC-721 token. This way, every person with an ERC-20 token holds a portion of the original NFT, or, a slice of the pie.

Returning to the art world, this trend will allow several buyers to own a fraction of the artwork. These fractions can later be sold on a secondary market, making NFTs more accessible to the general population.

In the Music industry

We’ve already seen how the Grammys used NFTs to commemorate their show. But the use of NFTs in the music industry does not stop there. An American band, Kings of Leon, were the first to take advantage of the revolutionary technology. In a first, this band released their eighth studio album as an NFT. These tokens were of three types offering an album package, concert seats, or audiovisual art!

Apart from being a unique use of NFTs, this process ensures that musicians get their due without the interference of middlemen. Ownership and distribution, too, are facilitated by the use of NFTs and royalties are the ultimate bonus! With perks like these, it’s no surprise that this is an emerging trend.

A Story of Social Media

Ever since Cyber Punks minted 10,000 unique avatars in 2017, crypto enthusiasts have been using NFTs on social media. In January this year, Twitter opened up the floor to others, allowing users to set up an NFT as their profile picture. But of course, anyone could just right-click and save the picture before uploading it as their own. To combat this, it has been predicted that social media companies will have some sort of verification process in place to authenticate the identity of each NFT holder.

Twitter again leads the pack in this regard. After a temporary connection to your crypto wallet, your verified NFT will be displayed in a hexagonal shape that validates your identity. Meta is also set to follow suit, announcing that Facebook and Instagram will soon allow for NFT profile pictures.

The Game is still on

What blog on NFTs is complete without even a mention of NFT gaming? These games have been witnessing a surge in popularity ever since 2021 and there is no sign of any abatement. In fact, new features are set to be added and existing features to be improved upon in the coming times. For one, play-to-earn games may increase in popularity and usage as more and more people engage in buying and selling in-game NFTs for passive income. Decentralized gameplay, too, may emerge as a trend, giving more control over the game and its assets to the players. 

The development of the metaverse may also gain a boost from the rise in NFT gaming. Sports NFT marketplaces, in particular, have set their sights on creating a metaverse where users can watch games in virtual stadiums, trade NFTs, and even play the game. This would absolutely set the stage for the metaverse to grow rapidly.

Wrapping Up

It’s more evident than ever that NFTs are here to stay. Experts predict that, very soon, artists and celebrities will even be able to create a digital persona or a personality NFT to perform or interact with their fans. Alternative blockchain platforms, too, may get their share of the spotlight as the industry is looking to more ecologically sustainable methods of minting NFTs. In sum, we can expect NFTs to be more ubiquitous than they already are – and that’s saying something! 

 

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