Future Predictions for NFTs: Where are the Metaverse and NFTs taking us? This is the answer, according to Valentina Drofa, founder and CEO of DrofaComms.
Non-fungible tokens rushed into the crypto community in 2021 and quickly rose to the top of the press. A myriad of projects have emerged to create and sell NFTs at stunning prices, including one NFT of photos from the Bored Ape Yacht Club collection. $ 3,408,000..
Many people are legitimately wondering about the feasibility of non-fungible tokens as financial instruments and the sustainability of the value of NFT. As I see, there are more questions than answers. Since the spring of 2021, there has been growing interest in NFTs as the press continues to announce flashy headlines that NFT sales amount to millions of dollars. However, it is easy to see that investing in NFTs is currently very risky, as the growth of this market is now driven by greed rather than fundamentals. People often strive to profit from a particular NFT collection without delving into the details of what the project offers.
But don’t confuse technology with its applications. In essence, an NFT is a digital certificate that, through its uniqueness, confirms the exclusive right to own something. Each NFT is a type, each has a smart contract that issued it, and each token issued by a particular smart contract has a unique identifier. Therefore, NFTs cannot be forged. This makes the range of potential applications much wider than the infamous pixelated images of zombie punks and whimsical monkeys.
In the second half of 2021, we heard more and more about the blockchain Metaverse. The Metaverse is a virtual reality, whether it’s a digital copy of physical reality or a completely different imaginary world with unique characteristics, peculiarities, and inhabitants. NFTs have become a central conceptual element with various services and assets linked to NFTs within the Metaverse.
Many fashion houses such as Gucci have created their own metaverses that allow users to create their own avatars and dress them up with fashionable brand virtual outfits. Sure, this isn’t a completely original idea. Fashion brand online stores have long had the option of trying on clothes and creating their own image online.
From late 2021 to early 2022, the Metaverse associated with blockchain video games became more popular. Numerous new projects have created their own metaverse, including Star Atlas, Sidus Heroes, Cryoway, Gods Unchained and more. In this Metaverse, players can train their characters, attack, explore the distant space world, and win prizes in everything. Game currency and various NFTs.
NFT: Use in Metaverse
As for the artifacts and various equipment available to players in the game, they are all represented as NFTs on the blockchain. And that is the decisive detail in the economic model of these games. Each of these NFTs brings some benefits to the player character, making them more powerful or more successful in the game and helping them financially. Therefore, the more a particular NFT does to a character, the higher the demand for NFTs in the in-game market.
In addition, many such games have the concept of metaverse parcels, allowing players to build different structures to create their own NFTs. These lots are also represented as NFTs and can be bought and sold. And the fact that they give you the opportunity to earn more in-game currencies creates a supply and demand model for the market economy.
A feature of these games is that in addition to being able to immerse yourself in the metaverse of video games, players can earn valuable blockchain currencies outside the game. In my opinion, this NFT application isn’t enough to be considered a full-fledged part of our daily lives, but it does speak to the particular complexity of the application that supports the value of tokens. And in the end, this could help further develop NFT technologies and integrate them more fully into our lives.
Entertainment NFT
We’ve already talked about the controversial collection of NFT photographs, but that’s not the full scope of NFTs in art. Many celebrities in the art world use NFTs to monetize their work. For example, in February 2021, singer Grimes collaborated with his brother MacBoucher to create an NFT collection. It sold for $ 6 million at the Nifty Gateway on the NFT Marketplace. In the spring of the same year, the American rock band Kings of Leon became the first musician to release an album as an NFT.
What Kings of Leon has done has shown how NFTs can be used in the music industry. This is especially relevant for musicians, given the commercial model used in streaming services. In particular, many performers are dissatisfied with the loyalty they get from those who listen to their songs on Spotify. In 2021, a single play of a track on Spotify turned out to give artists $ 0.003 to $ 0.0084, or $ 0.004 on average.
On the other hand, when you sell an album through an NFT, the artist is the main beneficiary because most of the money you receive from selling the album is paid to the artist. This NFT application could become even more popular in the entertainment industry, giving users access to a variety of services through NFTs. You can use NFTs to provide access to media services and subscriptions to various events, whether online or offline.
Where are we heading?
Future forecast of NFT? It is worth admitting that the value of the NFT market is rising rapidly now and we are observing the stage where people want quick money making. Therefore, the focus tends to be on the simplest profit-generating schemes, rather than the technical potential of tokens. This is similar to what happened in an ICO where many fraudulent projects were seen along with Bitconnect, but in the end, few successful projects worked fine from the ICO era to the present day.
The key to them was that they often lacked hype. They include the distributed liquidity protocols Aave and Terra and the Polygon blockchain. During the 2018 Crypto Winter, quite a few other successful decentralized blockchain projects were created and launched. It included the decentralized exchange Uniswap and the ThorChain blockchain.
Therefore, I am confident that NFTs will face similar problems. The wave of hype has disappeared and the practical development of technologies related to NFTs continues.
About the author:
Valentina Drofa is the founder and CEO of Drofa Comms, an international financial and fintech PR consultancy. Through well-coordinated communication with its audience, the company helps leading financial and fintech companies grow with caution and respect. According to TechRound, Drofa is one of the top 64 women in startups.
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