Are NFTs Dead?
The term 'NFT' has received a lot of backlash recently and in some ways rightly so, there have been many worthless NFT projects that are nothing more than overpriced JPEGs, but this does not mean that an NFT technology has no value.
NFT technology is here to stay. Despite the naysayers in traditional media and investment circles, several factors indicate that non-fungible tokens will be a key part of the web3 infrastructure. confusion about the true purpose of an NFT only helps to perpetuate a negative narrative. This article will explore why people hold this belief and counter it with evidence of why NFTs are here to stay.
A Problematic Narrative
Why the FUD? (fear, uncertainty, and doubt) The answer lies in two main reasons: ignorance and greed. Many people don't understand how NFTs work, so they assume they must be scams. Additionally, many people see NFTs as an opportunity to make quick money by investing in worthless tokens. As a result, these individuals are quick to spread FUD about NFTs to manipulate prices and earn a quick profit.
The overused term "NFT project" is only further muddying the waters and offers no real definition of what the founders of a project are trying to achieve. A great example of a solution to this can be seen in Fifa+ Collect's latest project. They have avoided using the label of NFT altogether and instead focus on highlighting all the benefits that web 3 technology provides their collection. Instead of shouting about yet another generic NFT project, FIFA stated that the project is "A verified digital collectible is a one-of-kind officially licensed keepsake with unique ownership authenticated by the blockchain. Typically, a verified digital collectible can be purchased, sold, and traded on a marketplace."
What is an NFT?
First, up the generic answer, NFTs are cryptographic assets with unique identification codes that make them different from one another. You can't trade or exchange them like you would be able to do with fungible tokens such as cryptocurrencies. Fungible tokens are identical to each other and act as a means of commercial transactions.
But what makes NFTs special? NFTs are unique data containers that are publicly verifiable and immutable, allowing the holder to keep their identity private while proving ownership. the truth is most people won't see the big deal in this description. but for people that understand the war on privacy, and those that work on the technical side of royalty/commission distribution, community development, and sales & marketing NFT technology is a game changer, but only when understood as a very specific tool amongst a whole host of things that make up web3.
What makes an NFT valuable?
An NFT doesn't add value in a monetary sense, it can only prove value. Many of the things we already hold as valuable in our lives can now be proven more fluidly. no paperwork, no dependence on a central system, and more privacy for the individual.
Let's explore some of the ways that NFT technology will cause major upheaval.
Before we get into the benefits it's really important to note that art is often at the forefront of societal change, and even though NFT technology won't turn everyone into art collectors, it could lead to other cultural changes on a global scale.
The world of digital art has been one of the first to wholeheartedly adopt NFTs. The ability to own a piece of digital art that is provably rare and can be resold at a later date is extremely appealing to both buyers and sellers. In the past, digital artists have had to rely on platforms like Etsy or Redbubble to sell their work. These platforms take a cut of the profits, and the artist has no way of knowing if their work is being sold second-hand or how many copies have been made. With NFTs, artists can sell their work directly to buyers and know that the art is genuine and no counterfeit copies are floating around.
Memberships and Loyalty Programmes
NFTs can be used to represent memberships and loyalty program benefits in a way that is much more secure and efficient than traditional methods. For example, a gym could use an NFT to confirm a monthly membership, which would give the holder access to the gym's facilities and services. The NFT could be stored on a blockchain-based loyalty program platform, which would allow the gym to offer discounts and other benefits to members that hold the NFT.
This system would be much more secure than traditional methods, as it would be very difficult for someone to counterfeit an NFT membership. It would also be more efficient, as the gym wouldn't have to keep track of physical membership cards or worry about them being lost or stolen.
NFTs can also be used to track tickets for events such as concerts, festivals, and sporting events. The ticket could be stored on a blockchain-based platform that would allow the event organizer to keep track of ticket sales and resales. This would be a more secure and efficient way to sell tickets, as it would be very difficult for someone to counterfeit an NFT ticket.
The event organizer would also have the ability to offer discounts and other benefits to people that hold the NFT ticket. For example, the organizer could give holders of the NFT ticket early access to the event or special seating.
NFTs can also be used to represent other types of assets, such as property deeds, birth certificates, and driver's licenses. The possibilities are endless, and it will be interesting to see how NFTs are used in the future.
Blue-Chip Companies Incorporating NFT Technology
Still not convinced? let's look at some of the blue-chip companies branching out into blockchain and NFT technology.
Nike, Adidas, Tiffany, Gucci, Walmart, McLaren, FIFA, UFC, Samsung, Coca-cola, Mcdonalds, Ticket Master, eBay, Shopify, and Time Magazine are some of the most well-known businesses investing in NFTs. Some of these companies are still building behind closed doors and some have already had success with their investments, with Nike reporting $183.69 million in total NFT sales and $90.59 million in royalties. Adidas reported $10.95 million combined with $4.75 million in royalties, while Tiffany has reported $12.62 million in NFT revenue. Gucci has made approximately $11.56 million in NFT sales, and Time Magazine has released its first complete issue as a non-fungible token. Nickelodeon also created a Slimy Seconds marketplace where consumers may purchase their preferred Nickelodeon animated series as NFTs.
In the eyes of flippers trying to make some quick cash, NFTs are dead (at least for now), However, The benefits of using NFTs are clear. They are more secure and efficient than traditional methods, and they offer a degree of privacy that is not possible with other types of assets. As the use of NFTs grows, we will likely see more innovation in the ways they are used. So far, we have only scratched the surface of what is possible with NFTs.