You may be wondering, why is it important to be mindful of NFT trends? Well, whether you buy into the concept of NFTs or you don’t, these forthcoming trends have the potential to revolutionize the way we advertise things, purchase and sell art, use the internet, and even produce and enjoy music. The idea of NFTs and Web 3.0 looks set to achieve their full potential.
If all of this seems confusing, and you still don’t understand what NFTs are (there are many people out there who still don’t so do not worry), we are going to briefly discuss this new trend and some other trends to look out for this year.
But believe us when we tell you that regarding NFTs, the sky’s the limit.
What Are NFTs?
NFT stands for “non-fungible token.” Think of it sort of like a dollar bill – it may be traded for any other dollar bill. With a non-fungible token, what you have is a one-of-a-kind digital asset that cannot be traded for another NFT. As a result, each NFT is unique. Blockchain technology is used to move NFTs from one owner to another, creating a virtual footprint from the seller to the buyer that proves the exchange. This establishes the buyer’s one-of-a-kind rights of ownership.
NFT Trends To Look Out For
Gaming and Tokenization
This is one of the more significant trends. NFTs will shift their focus from promoting art to functionality in the coming year, whether it’s gaining admission to exclusive communities or gameplay.
We’ve already seen this in video games, with companies like Ubisoft investing in a blockchain to allow gamers to purchase and obtain goods with real value. Another ‘play-to-earn’ user is Axie Infinity, which is currently valued at “$6 billion” and where gamers can earn up to $15 per hour via NFT incentives.
A number of NFT initiatives are attempting to tokenize, which makes it seem like you’re getting more worth out of it. These tokens can also be bought and traded on the marketplace. If done correctly, it could be a powerful thing.
Branding That Is Owned By A Community
Giving a community IP authority so they can twist and turn into new ways that the original brand would never have thought to do adds value.
Utilizing an NFT and blockchain, a creator may get direct and indirect resale rights, guaranteeing that they are always compensated for future usage of their product.
Cutting some slack when it comes to ownership of an IP allows for expansion and innovation, and artists are compensated for their contributions and efforts at every step.
Will Disney and other big businesses share their intellectual property with NFT communities? Not probable, but huge firms will resort to NFT communities and organizations to promote new items, therefore this concept of branding and marketing that is led by the community will gain a foothold in many industries across the board.
The Casting of NFT Avatars
NFTs have the benefit over typical IP development in that you may own a portion of a larger brand and profit from it. NFTs like StereoheadZ and Bored Ape Yacht Club allows users to generate their own work for the company, giving a collective group of musicians, animators, and artists, a vibrant feeling of inventiveness.
The personality Avatars for Bored Ape Yacht Club member Jace Kay’s NFTs band (yes, you read correctly, he has created a virtual music band called the NFTs) were obtained from the public, and monies were repaid to those artists.
Expect more of this Avatar Casting to take off in 2022. He and the BAYC are working on a number of initiatives, and members can utilize their Bored Apes or StereoheadZ in exchange for a piece of the revenues.
The Energy Issue Will Be Solved With Ethereum 2.0
The massive carbon footprint created in the production of NFTs is slowly becoming an environmental issue. On the Ethereum blockchain, just one transaction consumes as much energy as a typical household consumes in a day and a half. Ethereum is energy that burns, much like if you had your foot on the accelerator of your car but you also had the handbrake up. This is unnecessary wastage and, thankfully, it’s also evolving. Ethereum 2.0 will be released gradually next year, and it will make a significant impact with regards to the energy being consumed by NFTs, and their current value.