The Future of Non-Fungible Tokens
The NFT market has been doing quite well over the past few months. However, there was a lot of speculation about the future of NFT tokens in the past.
Today, cryptocurrencies are leveraging this model by introducing new ways for investors to invest in many different types of intangible assets, such as stocks, bonds, etc., without physically owning them.
These intangible assets are represented by NFT tokens, designed with decentralization in mind, instead of real-world currencies such as dollars or euros. Users can send cryptocurrency tokens that represent shares or bonds instead of actual shares or bonds themselves. This allows people who do not have access to existing counterparties who would otherwise sell them.
Present and Future Uses of NFT in Different Areas
1. Gaming
In most of today’s Games, NFTs are used for in-app purchases. These games will be a turning point for many NFT enthusiasts who want to play games and earn so much crypto out of them.
CryptoKitties, the most popular blockchain game, is an excellent example of how NFTs can be used in games. The rarer an item (in the NFT verse), the more expensive it becomes. The value of an NFT that is hard to find or on a limited platform will always increase over time because of its rarity. The reason for this increase in value is that the opportunity to own it no longer exists.
In a very young industry like blockchain, we can anticipate many changes in the future, which could include a shift in how things are done today. We can expect the NFT space to grow and possibly even change gaming as we know it. And who knows? Maybe your in-app purchase in the game will be worth a ton of money in future!
2. Real Estate
Real estate is the asset class with the highest amount of wealth in it. There are numerous ways in which NFTs can be used in real estate. First and foremost, they can be used to make real estate proprietorship transparent.
For instance, It is possible to put ownership information of the land or a property on a blockchain and allow people to view it. Buyers and sellers will also benefit from NFTs since they will be exempted from paying expensive transactional and administrative fees.
Furthermore, smart contracts can also be used in the real estate sector. For instance, smart contracts can handle issues such as rent collection and deposit refunds by tenants at the end of their tenancy.
NFTs can also develop a new form of crowdfunding that will allow investors to earn returns on their investments in real estate projects, such as building houses and renting apartments.
Therefore, NFTs will become an integral part of the real estate industry. The blockchain gives us the chance to connect people looking to buy or sell properties with one another without having to go through a third party or middleman. This can significantly lower transaction costs and save us time while still ensuring trust.
3. Music
The relationship between artists and their fans is one of the most important in the music business. The proliferation of online music streaming services such as Spotify and YouTube has now made it easier than ever for fans to listen to the music they love for free.
Because of this, musicians have been struggling to find ways to monetize their content and sustain their artistry. Enter blockchain technology.
By introducing NFTs, artists can create new revenue streams through the sale of limited-edition merchandise that is only available through their token. As a result, fans are motivated to buy these tokens since they have real value.
As a result, the artist and the fans benefit from a mutually beneficial relationship — the artist makes more art and can sustain their craft without relying on record labels or other third parties. NFT is also an excellent way for the music industry to earn money.
4. Hyper-Realistic VR
The blockchain-powered future allows a person’s entire collection of digital assets to travel with them through hyper-realistic virtual reality environments. These assets could be viewed by anyone interested and used for immersive gaming.
Imagine combining your favourite sports team’s jersey with a collectable card game; one day, we might even see digital NFTs that can be used physically as well as virtually. If you are wearing your favourite sports team’s jersey, why not use it to play cards with your friends! This will create an interactive and immersive experience, add value to the physical item (the jersey), and extend its lifespan and usability.
In the world of AR and VR, the NFT market will be the most important innovation. Users will sell and buy virtual items, such as weapons or tools, for their avatars. An NFT can even represent an item that you can pick up, carry around, or even sell for real money at some point in the future.
5. Decentralized Financial Applications
It is important to note that decentralized financial applications are relatively new. Decentralized financial applications can be used to transfer funds, lend, borrow, trade, and more with cryptocurrency (and potentially fiat). A common misconception about DeFi is that it’s “decentralized banking.” It’s not; it’s closer to lending services like Lending Club or Prosper.
Creating composite NFTs (C-NFTs) is the main use of NFTs in DeFi. Composite NFTs are like fractional ownership in some way. They are shared in an NFT.
The benefit of this model is that it allows smaller groups of people to share ownership of physical assets in a more secure way than centralized models were previously possible. For example, it’s harder to steal $100 worth of real estate than $100 worth of Bitcoins.
When you don’t know what to expect, the beginning can be frightening; on the other hand, excitement for the possibilities awaits. As we enter into this new era of the futuristic metaverse, each of us has the power to shape this new world and society through the choices we make.
As we begin to shape the future of our civilization, let’s be aware of the world(s) we wish to participate in, who we grant power to, and how we shape its course.
