Exploring The Potential Possibilities Of NFTs

Innovation can be triggered if life becomes interrupted, especially during crisis. In 2008, big banks invested their clients’ funds in high-risk investments and plunged into the U.S. into a financial crisis. It was during the aftermath of this crisis that blockchain was invented as a huge facilitator of change to the broken system. Blockchain is the foundation, or system, on which all cryptocurrency currency and NFT’s are based on. Blockchain keeps track of every transaction in a manner that makes it hard (if it is not impossible) to hack, alter, or deceive the system. It is also decentralized, which means that the transfer of control and decision-making from a central entity (individual or organisation, or the combination of both) to an uncentralized network (group of individuals). This new technology demands transparency and accountability and places the power in the hands of its users.

 

The aim was to create an innovative system of monetary exchange that was not in the hands of a select few who took choices behind locked doors but an arrangement that functioned in the collective interest of all those who invested in it and could be monitored easily. The first major innovation in blockchain was Bitcoin. It became the first worldwide currency that can be exchanged easily between different countries and without exchange rates. This is crucial in the context of an increasingly globalized society. Crypto currency is accessed similar to exchanging dollars from your country for foreign currency. However, rather than visiting an institution, you can exchange your cash on a secure platform such as Coinbase, Robinhood or Metamask. If you are apprehensive about the possibility of transferring money electronically, it’s important to note that traditional banks also store your funds in digital form and are at risk of being compromised. The main benefit for traditional banking institutions is they’re secured. However, crypto is more secure due to the fact that it is built on the blockchain , and every touch point is monitored. This means greater security and less chance of being hacked and, if there were an attacker, they could be easily identified.

The next step in the evolution of blockchain was introduced in the form of Ethereum. Ethereum can also be described as a cryptocurrency currency that also offers an open platform that allows developers to create “smart contracts.” These smart contracts are bits of code which are linked to a digital asset which declares the asset to be distinct, traceable and authentic. They are able to be applied to any item digital and are generally not hackable or copyable. All NFT’s (non transferable tokens) come with smart contracts associated with them. NFT’s are basically goods are available to purchase as a token of exchange for crypto usually Ethereum. That’s right the money you are buying is crypto and NFT’s is the digital items you purchase using crypto currency.

NFTs began to attract the attention of the public after Beeple auctioned off the “Everydays: The First 5000 Days” digital art work for $69 million in partnership with Christies. They are usually closely associated with the art world…for moment, however there are many ways how NFT’s could be used. The norm is that a work of artwork (or data) is copied repeatedly and leave the artist, or the buyer, without control over this duplicate or means to verify an original piece. Michael John Peters who has worked in the field of fine arts for more than a decade, explains the significance of NFTs in the world of art, “It is very easy to counterfeit authentic certificates or duplicate artwork. Certain paintings that are exactly in composition and size sell at wildly different prices based on the provenance (a recorded history) and a certificate of authenticity. For example , a Picasso painting with authenticity and provenance was auctioned at 2.2 million dollars. While a second Picasso painting of identical in size, composition and similar to the exact date of sale and without provenance was is only sold for the sum of 158 thousand dollars. NFT is an iron-clad irreparable proof of ownership with provenance that lasts for the rest of time. In the near future, each painting, digital or physical, will be accompanied by an NFT on it.”

 

Jessica Salomon adds, “NFTs are accessible to the world’s largest community of users from various global NFT marketplaces, which take very small cut (or even cutting) that permits artists to earn more money, as opposed to the traditional exchange of art where agents and galleries take part of artist’s profits. Furthermore, NFTs allow artists to interact directly with their customers since each transaction is recorded in the blockchain and the buyer and seller are transparent. This transparency can lead to fan communities and viral communities, making it possible to have real conversations between buyers and creators other social media platforms. This has opened up amazing opportunities for artists such as PPLPLEASR, who last year was in a state of unemployment due to the epidemic and was applying for every job she saw and this year has sold from magazines and sharing stages with famous artists such as James Jean and Steve Aoki.” Pplpleasr further commented that “Crypto/NFTs transformed my life not just because of the investment opportunities and the money I was exposed to however, it also brought me into the community of enthusiastic people who don’t hesitate to change the status quo.”

It’s just an issue of time before doubting the validity of NFTs will cease to be the subject of discussion. Large companies are aware of that and are constructing within this area:

• Twitter is integrating NFTs into its platform.
• Facebook is participating in the construction of an ethereal world.
• Nike is working on NFT confirmation on footwear
• Coinbase is constructing an NFT marketplace
• Warner Bros. already released Space Jam NFTs, and is planning to make music NFTs available.

We’re only scratching the surface regarding what NFTs and smart contracts can offer as well as the reason why collectors and investors are eagerly entering the market. The general public has not yet grasped the potential of NFTs and many view this as a trend which will eventually fade away. But, the pace of innovation in this field will be ongoing in the coming years. These first actions are not the only straightforward applications of smart contracts. Here are a few more examples of industries likely to be disrupted by NFTs:

Gaming

Gaming will likely to be among the first applications where we can see a huge fundamental shift away from NFTs. Gamers are able to find a great deal of significance in the digital identities, their personal stories, achievements as well as their communities, stories and even their status. Gamers can spend hundreds or thousands of dollars playing games, and purchase digital items including outfits to make their avatars unique appearance, or boosts that improve their gaming performance or unlockable content to explore new worlds and stories.

The Play-to-Earn concept has come into existence. Players participate in a gaming experience, provide worth to their ecosystem by their play, and earn digital assets in the form of NFT. Through the ownership of these assets players can trade their NFTs for cash and make money with the game’s developer. This is a mutually beneficial developer-customer relationship, as opposed to an destructive one. These NFTs are owned by the user and not controlled centrally by a single game publisher. Even in the event that the game is shut down the NFTs will be used and compatible with different virtual worlds. This is a radical paradigm shift, that allows for the distribution of the power and wealth.

Social Impact

What’s really exciting is the positive impact NFTs have in the world. Jeremy Dela Rosa is the director of Leyline an organization that is non-profit which is leading the way that has a positive social impact with NFTs. Leyline’s aim is to develop an sustainable NFT identity and a system that promotes, rewards and promotes environmental and social good. Users of their platform can earn NFT collectables for doing good actions around the globe. Their NFTs are a symbol of an idea or cause that was fought for by people an unforgettable moment in time, which made the world more peaceful.

The user’s tale of the positive actions they took is recorded and recorded on their NFTs. You can exhibit your Leyline NFTs in the form of artwork in your own individual art galleries (both in the virtual and in the real world). Visitors and friends can click on your NFT to read your contribution story. The greatest benefit of NFT’s is that they encourage others to take on acts of charity and they are able to be obtained using the power of social impact. Leyline is a great example of bridging the physical with the digital. Customers are inspired to be a part of the solution through solving real-world issues and are then rewarded digitally with NFTs that can be collected in addition to the opportunity to purchase tangible goods like bags or backpacks. Leyline backpack or bag.

It is also important to note the unique method in which Leyline operates its business, which is in complete alignment to the underlying principles that drove why Blockchain was created to promote transparency and democratic governance. Leyline is building an DAO (decentralized independent organization) that is a brand new type and governance system in which key decisions aren’t taken by a single set of people. For instance, anyone who is on the Leyline platform has the ability to make a submission that is then voted upon by the community at large. They also take notes of all their meetings, and publish them to the public for to view, and hosting Discord events in which they respond to the questions of the general public. This new business model can be a model of a new way to approach accountability and transparency in the workplace. This kind of structure is what is what the public wants after the recent revelation of company misconduct like Facebook as well as Airbnb.

Real Estate

The real estate market is ripe for disruption. The contracts, certificates, ownership and the history of claims will be kept on the blockchain and made accessible to the public. This will eliminate the need for paper and multiple different layers of intermediaries. It also helps reduce fraud, which unfortunately occurs more frequently than you believe. If more real estate agreements are converted into NFTs and stored on a safe blockchain, fraud in real estate will become a thing of the past since Smart Contracts are nearly impossible to alter, and easy to verify and permanent. Any digital asset that is created as an NFT is protected by the same security level.

Futurist and disruptor, gmoney addsthat “Mortgages can also be considered NFT’s. What would have happened to the 2008 financial crisis been avoided if all MBS indexes were completely transparent, and were on chain? There wouldn’t have been any risk of re-hypothecation. the actual leverage and assets could be monitored in real time, and the whole financial system would not have been in a state of collapse, and required the taxpayers to bail it out.”

The Metaverse

Companies are working hard to develop Virtual Reality metaverses. Metaverses are virtual realms in which basically the internet comes to life. There’s plenty of possibilities in metaverse universes, where you can design your life, communicate with other people in virtual communities, make your avatar and work, play and discover new worlds making use of virtual reality headsets and augmented reality glasses apps for smartphones or other devices that include using virtual touch. If you’ve ever seen the film Ready Player One then you know what a metaverse. Thanks to the advancement of AI and the use of universal standards, and growing processing power for computers, huge digital worlds are currently being created and constructed. Metaverses are a space where your children and you will be able to explore, and makes the web that we have today look like a silent film by contrast.

NFT’s will become an integral component of metaverses, and serve as the basis for assets that could be used in all of these realms. When you construct the virtual house you’ve always dreamed of, the walls include unique NFT artwork as well as “prints” of duplicated digital artwork that you purchased from collectors. Invite your friends to your digital oasis to enjoy music from your NFT music and look at your NFT artwork – which is not only a artist’s work that is unique but also the art piece’s story and history of how you acquired the art piece. The guests arrive quickly and are not burning fossil fuels and needing no Uber. Yes, they did not stop at any point to purchase chips However, they did offer you a brand-new digital shirt that you can wear as a housewarming present.

Through NFT’s metaverse, the virtual world will also be integrated into the real world. One example could be: physical locations will include digital versions in the virtual realms The NFT Art galleries could exist in the physical world, and also on digital displays or music events will be held in an actual concert venue as well as an online bar. Tickets are available in NFTs and be displayed in your online inventory of ticket tickets displayed in your home with an electronic signature or a personal message from the artist directly.

First-time buyers include:

• Decentraland is a digital land
• Sandbox Open Gaming Metaverse similar to Minecraft that is powered by NFTs
• OnCyber – 3D NFT Galleries
• VCCESS launched the first phase of their metaverse that is a social marketplace.

Shortfalls of NFTs

We are in the very early days of NFTs. It’s an extremely complex piece of technology the majority of people have a difficult time understanding. To gain widespread acceptance, there are several major hurdles to be overcome.

1.) There has to be a purposeful use for NFTs, or an actual value behind the NFT that all communities are unanimously on.

2.) Experience for users has to be seamless and easy. The majority of people don’t know how the algorithms of google maps function, they simply follow the instructions. In the same way, blockchain applications don’t require users to be educated about NFTs They just have to make it simple to make use of the technology.

3.) Cross-chain and cross-app compatibility. In the metaverse that is emerging each developer is aware that a compatibility of the NFTs they create with different games, marketplaces and apps will enhance the utility of their NFTs and help their customers. This also increases their potential users’ base of customers through network effects.

4.) Stabilization and acceptance of cryptocurrency. NFTs are bought using cryptocurrency. If there aren’t enough people with crypto, or are hesitant to spend it due to the possibility that its value will drastically fluctuate up or down the market for buyers remains tiny.

5.) the storage space of your asset. One of the issues with NFTs can be that objects (image audio, video, image) can be quite massive in size. Thus, the majority of developers keep the asset off-chain. It means that, while the music isn’t located on the blockchain. The NFT is in fact a reference to the file on other platform. The issue with this is that if the service provider fails or the initial NFT marketplace ceases business, the real asset that is behind your NFT could be lost. In essence, you will receive a “file not found’ error when you check your NFT. There are solutions that are in development (IPFS for instance that has a lot of potential) and methods of compressing assets to allow them to be able to live in the Blockchain. However, there is a lot of work to be completed before we have NFTs that remain indefinitely without maintenance.

6.) In order to make or mint an NFT users must pay an amount (also called gas fees). Griffin Anderson points out that, “Gas fee typically costs up to $50 USD on the majority of important blockchains, such as Ethereum. These prices aren’t affordable for creators and artists. The good news is that new blockchains like Archway can be customized such that projects can reduce gas prices to ensure that the user does not have to shell out a huge cost to mine or get the NFT.”

Positives of NFTs

1. It is fundamentally safe, decentralized, and globally accessible, and is designed to empower individuals and encourage increase in wealth. It’s built-in immunity to corruption and censorship by those who are powerful. It provides the foundation for a completely new app and services layer on the internet in general. Virtually every app and service that is available today could be re-created with blockchains thanks to these advantages. From Decentralized finance (De-Fi) and streaming services, social media and games to entertainment commerce, healthcare and management of supply chains. More radical developments are expected to follow, such as bio-engineering and AI security protocols.
2. A cryptocurrency and NFT market gives modern investors the complete spectrum of investment risks and a broad portfolio of investments and all the while benefiting worthy producers and disempowering broker that add nothing to the process.
3. It is an asset-based path towards escaping the poverty. There are 1.4 billion unbanked individuals around the globe, and are not able to access an established banking system. Imagine if you don’t have a bank account. You won’t be able to obtain a loan, credit card, purchase cars, sell items on eBay and so on. It’s a fact that is accepted by the majority of people in the advanced world. Bitcoin and other digital currencies change this mindset. Today, these 1.4 Billion people instantly can have an account with a bank, join marketplaces on the internet, create games, art, and music and even get financing to manage their businesses.

They can create wealth to the point of a first in their life. They can bring economic prosperity to their families and communities. The digital economy doesn’t have any concern about borders between states and nationals and does not have any physical or logistical constraints. The virtual world and communities generate value exchange with almost no operating cost.

1. Investors and collectors can easily be aware of what they’re buying before they purchase. They can also confirm the validity of the asset by its unique identification and be confident that the contract is not altered or falsified. This technology is bringing an era of security investing, and it’s also working in a manner that reduces the barriers to entry and level all the players for common investor and collector.

1. Content on NFTs can’t be controlled by censors. There is no institution, company or even the government has the power to block the content stored in the blockchain. There isn’t a central control individual or team that they can imprison or fine, and or force a single server to be shut down. This is the highest type of freedom of expression online. Even if a particular application which relies on NFTs is closed. The data is still on the blockchain and any number of applications that are decentralized could take over its place.

Nick Emmonds, founder of Upshot says, “The high level of excitement over NFTs is deserved. NFTs will transcend the realm of collectibles and art and will begin to encompass a more broad range of financial assets which can be utilized effectively within the crypto/DeFi community. Loans like those you can take out against your digital art is only the beginning of working with insurance, real estate and options. as NFTs. They are the missing element to decentralize the rest part of the financial system, and creating a new way for financial transactions to occur. This will result in huge growth in the amount of financial inclusion around the globe, letting huge segments of the population access the financial system that has previously not been accessible to their.”

Humans, Technology and Change

Technology has always evolved with humans. However, today technology is evolving more rapidly than it has ever. Innovations typically have unexpected effects. Laptops’ creators probably didn’t anticipate their devices to be able to help create large and vibrant community of nomadic people around the world , or to have the effect of checking email while at home, which makes it difficult to detach from work. In reality, every innovation has unexpected consequences.

It is encouraging to realize that the innovators of blockchain created this technology with the aim to empower and democratize worldwide citizens. It is essential to ensure that the creators remain true to their convictions, particularly when power, money and acquisition offers from major corporations begin to come their in the near future. As we move into this new era of technological and technological advancements, each of us has the ability to influence the future of our world and our own society through our choices. We are at the beginning of this change. Let’s begin this journey with a clear understanding about the world(s) we wish to be a part of, the people we empower and how we can influence the future of the civilization.