Non Fungible Tokens or NFTs are all the rage around the globe nowadays; From Gaming NFTs and art NFTs to individual users being able to create your own NFT the technology has already begun shaping the ways we interact with the world. Despite the technology being in its infant stage, the hype around NFTs continues to go grow, and many are rallying behind this new asset. Let's take a look at look at two ways in which NFT technology has begun shaping our future.
With Meta (what used to be Facebook) focusing on developing the metaverse, and a number of other AR/VR-related projects underway, we are looking at the potential of a transition to virtual life. In such spaces, your virtual currency will be spent on digital items such as clothing, artwork, skins etc. All of these are most likely going to be in the form of NFTs, allowing individuals to have a log of the trade of unique items within the Metaverse. NFTs will help create a virtual economy and make the transition that much more real.
As NFTs are based on the blockchain, a digital log of each transaction and transfer of ownership is created, leaving little to no scope for piracy and ensuring that digital assets have a clear list of approved owners. This is crucial as, in the absence of a physical asset, proof of ownership is what allows NFTs to retain value. While the asset can be replicated, its ownership cannot.
This property of NFTs provides new avenues for creators to raise revenues through the sale of their own NFTs. Whilst digital art is the most straightforward application of this, even things like music can be sold in this form. A great example of how this changes the way creators can sell their content is the sale of the World Wide Web’s original source code by Tim-Berner’ Lee in the form of an NFT. A number of big tech companies have caught on to this trend an example of which is Warner Bros are looking into releasing Space Jam NFTs and other music in the form of NFTs. The nature of NFTs means that you even could potentially create your own NFT.
NFTs are everywhere, but the technology and its adoption is still at a nascent stage but only a fraction of us understand how the underlying NFT technology works. However, as we watch the entire world, from mainstream corporations, social media giants and governments alike adopting the technology, we cannot deny that NFTs will be a part of society in the future, and it has already begun shaping this future. Undoubtedly, NFTs hold great potential with their push to decentralize ownership, though one must wait and watch to see how the cards fall, before making any significant financial bets on the technology, unless you are extremely sure about what you are doing.
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