What Does the Future Look Like for NFTs?

17 June 2022

Unless you’ve stopped watching the news or scrolling on social media, you’ve probably heard of the term “NFT.” Since NFTs are still so new, few people are aware of what they are. Even fewer know what the future looks like for NFTs.

Here, we’ll break down everything you need to know about NFTs, how they work, common misconceptions, and what the future holds for NFTs.

Before we can jump into understanding exactly what an NFT is, we must first understand what Blockchain is. NFTs and blockchain go hand-in-hand.

Blockchain is the system on which all cryptocurrencies and NFTs are built on. This system is so secure that it is almost impossible to hack. Unlike traditional currency, the transfer of control is decentralized. This means that the cryptocurrency transfers from a centralized entity (ie – an individual or organization) to a distributed network of people.

Unlike traditional money transfers, this new monetary system puts power back into the hands of its users. This system works for any and all who invest in it, and it is securely monitored. In addition, blockchain allows the exchange between countries easily, as there are no exchange rates.

So, what exactly is an NFT and how does it work?

NFT stands for “Non-Fungible Token” – a form of cryptocurrency similar to Bitcoin and Ethereum, but that’s where the similarities end. NFTs are unique. They are tokens that are used to trade or exchange goods. In most cases, NFTs are used to exchange digital art, but this will expand in the coming future. In other terms, NFTs are the digital goods you buy using your cryptocurrency.

They are essentially smart contracts that are connected to a secured digital library that confirms the asset is unique, traceable, and valid. These smart contracts are packets of code that are connected to a digital asset that confirms the asset as individually unique, trackable, and verifiable. NFTs can be applied to anything digital and are, in essence, not hackable nor copyable.

A large misconception is that NFTs tend to be associated with the art world. That may be for now, but there are many ways in which NFTs can be applied. NFTs are not just “crypto monkey art” sold for millions of dollars. In fact, NFTs are so much more than that.

NFTs allow anyone to exchange a digital asset as an NFT. This form of blockchain prevents the original asset from being copied repeatedly. It’s also a way to validate the original piece. Essentially, NFTs are indestructible proof of ownership. Due to its global marketplace, vendors take a minimal cut (or even no cut) which allows them to create more wealth, unlike the standard exchange of art.

So where are NFTs heading?

It’s no doubt our society is looking for greater functionality – this is what makes NFTs very appealing to potential buyers. NFT creators can make their buyers a part of an amazing community, give VIP access to exclusive drops, and much more. The creators of NFTs must realize the necessity for these value ads to prevent these types of offering to filter out.

For example, GaryVee’s NFT collection called “VeeFriends” sold over $90 million in 90 days. People paid upwards of $50k for each one. Not only do they get the exclusive ownership rights to the VeeFriends artwork, but each NFT also comes with free entry to every Gary Vee event and bragging rights to being inside the VeeFriends Club.

Knowing how important exclusive perks like the example above have allowed NFT creators to design more engaging utilities. Other companies in the entertainment and travel industry are selling NFT tickets. This way, their customers can purchase tickets without worrying about the legitimacy or having to deal with customer service (MarshMcLennan).

The new adoption of blockchain technology also means that the job force is changing. New employment opportunities for people who understand blockchain and cryptocurrency will increase more than ever before. According to TechRepublic, in 2021 alone, crypto job posting on Indeed surged by 118%

What does this mean for us?

For starters, the reality is that the NFT market will continue to strengthen and grow as more people become willing to adopt this new form of blockchain. However, the NFT journey will need to become less confusing and more comprehensive. This is where TechCircle comes in. We’re striving to use education to prepare our society for this new shift in cryptocurrency.

To learn more about what we’re doing and how we can help, visit our website here.

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