The future of NFTs: more than just JPEGs
Are NFTs (non-fungible tokens) really dead? When people mention NFT, the first thing many people think of is the crazy PFP (avatar picture) market craze in 2021. Whether it is the once glorious Boring Ape (BAYC), Cryptopunks, or even just a stone, it was It was sold to a sky-high price.
However, NFT trading volume has plummeted by more than 90% in less than a year. Many NFT projects that were once traded at high prices have almost ceased to exist. Many people have begun to question the future of NFT.
However, experts point out that what really should be reviewed is not the technology itself, but excessive speculation.
A human problem, not a technology problem
The NFT speculation boom in 2021 largely reflects people’s desire to “get rich overnight” rather than problems with the NFT technology itself. A similar situation can be traced back to the baseball card collection craze in the 1980s, when people were also worried about what would later become almost Worthless cards paid high prices, and this crazy speculative mentality eventually led to the market crash.
Many people associate NFT with the crazy speculation in 2021, which undoubtedly hurts the image of NFT technology, but ignores the essence of NFT - a structure that can uniquely mark digital content.
This technology offers new possibilities for digital ownership. In the past online world, the ownership of digital content was often unclear because both pictures and music could be easily copied and shared, making it difficult for creators to protect their works and get their due in the digital economy. return.
NFT solves this problem and gives digital content a unique ownership and transfer mechanism.
What NFTs are really for: The future of digital ownership
With the application of NFT technology, creators can ensure that their digital assets are effectively protected, and can even realize royalty distribution through smart contracts to obtain a long-term and sustainable source of income.
In addition to digital art, NFTs can also be applied to access rights to members-only events, loan collateral, voting rights in DAOs (Decentralized Autonomous Organizations), and even liquidity collateral in decentralized exchanges (DEX) wait.
In addition, with the evolution of technology, today's NFT is not limited to digital artworks or digital assets. Many companies and institutions have begun to use it in the real asset tokenization (RWA) market to explore how to use NFT technology to represent digital assets. Monetize traditional assets such as real estate, stocks, and bonds, and digitize these assets for trading on the blockchain:
Overall, NFTs are not dead with the 2021 market crash. Instead, the technology is steadily growing and playing an increasingly important role in digital ownership and applications for real-world assets.
Although the PFP market that was a hit in 2021 has now subsided, the true value of NFT is being demonstrated in more application scenarios. As more innovations and technological breakthroughs emerge, those who once scoffed at NFTs may soon discover that NFTs have become an integral part of the Web3 ecosystem and are driving the further development of the digital economy.
This article is reproduced with permission from: CryptoCity
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