NFTs: The Commitment to the Cryptoverse and the Changes It Brings to Everyone

Author: NFTs

Do you think you've seen everything in the emerging field of non-fungible tokens (or NFTs)? Well… think again. From art to sports, and even bonds, there is still much to understand about these unique digital assets stored on immutable blockchain technology.

Nevertheless: rights and ownership have never been so disrupted by any technology like this.

Blockchain systems enable NFTs to represent proof of ownership, which is a breakthrough. This may seem like a basic statement, but it is actually a trend: blockchain can ensure that each NFT is authentic, making it increasingly valuable. More people are slowly realizing this now.

This new form of digital ownership is fueling the establishment of a new economy built on blockchain. From startups to established cryptocurrency exchanges, business models are being modified. It also allows brands and users to identify counterfeit and original items.

Now, some of the world's largest luxury brands, such as Dolce & Gabbana, are minting NFTs. The absorption has been so significant, partly due to Facebook's rebranding as Meta. This is crucial for announcing the new frontier that began to gather momentum earlier in 2021.

Before its hype, the NFT phenomenon erupted on March 12, 2021. That was when blockchain entrepreneur Vignesh Sundaresan a.k.a MetaKovan made headlines by purchasing digital art as an NFT for over $69 million. On that day, interest in NFTs peaked on Google searches. The news spread rapidly within and outside the cryptocurrency community.

In a blog post, Sundaresan stated that he revealed his identity to show that Indians and people of color can also be art patrons. This is a profoundly resonant message, as he positions cryptocurrency as an "equalizing force between the West and other countries." This record-breaking sale of Beeple's work became a watershed moment for the NFT industry. It unveiled the potential of NFTs in the art world, and we find ourselves in this realm today.

The NFT Market is Indeed Expanding

According to Chainalysis, the latest data shows that by the end of 2021, nearly $41 billion had been spent on NFTs. Over the past year, despite many individuals and platforms—including cryptocurrency exchanges that host numerous projects—having yet to fully explore the market, significant progress has been made in the NFT space.

Yes, the concept of NFTs started off somewhat rough and challenging. Various signs indicate that NFT technology trends have evolved over the past 12 months. Revenue models in the gaming sector also represent a use case for NFTs, and trends suggest that the growth of the NFT market has not truly begun. More players from the entertainment industry, artists, politicians, and even your little niece—everyone from outside the crypto realm—is joining every day.

That’s the point—the exposure has increased dramatically and continues to rise. Therefore, it is essential to rethink your position in this thriving space.

Reportedly, at this year's Consumer Electronics Show (CES), most attendees expected to see everyone discussing flagship themes including NFTs and the metaverse. According to market commentators, this is the largest event of its kind globally, with over 2,200 companies exhibiting, including NFTs.

In the NFT space, more figures like Melania Trump, Eminem, top political parties from South Korea, and Snoopy Dogg are expected to appear. Or more brands like Samsung and Paris Hilton. NFTs are now closer to us than we think.

The Significance of NFTs is Growing in Sports, Bonds…

Like cryptocurrencies, NFTs exist on the blockchain but are non-fungible. They help users and collectors develop emotional attachments to intangible items. As they come closer to us, they somewhat facilitate the rise of decentralized commerce. They are returning power to the people and removing intermediaries in the process of digital-to-physical redemption.

For instance, in the sports sector, NFTs have proven to be a powerful new medium for teams and players to engage with global fans. Like traditional sports memorabilia, they offer a creative new way to enhance the fan experience. They also provide brands with monetization opportunities. In fact, celebrity endorsements are seen as a new type of monetization strategy, which is evident in the role NFTs may play in future digital assets.

The bond market is no different. A new decentralized bond system D/Bond is introducing a financial instrument that securitizes any form of digital debt or asset into a bond category, which operates an energy-efficient process allowing for the splitting and bundling of NFT bonds and ERC20 token bonds.

The non-fungible nature makes NFT-backed loans inefficient. However, if securitized loans are provided by a decentralized bond platform, the best valuation can be determined before the loans are issued to creditors.

Thus, it is not enough to treat NFTs merely as a gimmick. They cannot, and will not, disappear overnight like the crypto craze of 2017, especially ICOs (Initial Coin Offerings). Instead, they should be viewed as tools that bring many who have never owned cryptocurrency into this space. Or as a means to meet the strong demand from cryptocurrency investors seeking new ways to invest and manage wealth. Or NFTs should inspire you to position yourself correctly for what is to come. Like a business proposal presented to you.

This may explain why NFTs are touted as killer blockchain products that the crypto industry has been waiting for to drive further adoption. Perhaps because of their potential to make it simple and straightforward for mainstream users to enter the crypto ecosystem.

Because as it stands, while some may know they are using cryptocurrencies and blockchain in NFT transactions, others may not. For the latter, purchasing NFT art or bonds may simply be another way to buy something they like. Nevertheless, the use of cryptocurrencies continues to grow.

NFTs Will Continue to Grow

So it can be said with certainty that NFTs signify the beginning of a shift. They stormed in like a tempest in 2021. It is expected that by 2022, as more brands enter this mysterious world with the allure of serving existing customer bases, they will continue to trend upward.

It is well known that the NFT token market is still dominated by Ethereum, and transactions remain confined to their respective minting networks. For example, as more people create on the Ethereum blockchain, things slow down, and it gets congested to unprecedented levels. This leaves room for alternatives. It also indicates that the non-financial services market is still somewhat limited.

However, once this is surpassed, and once free movement across networks is possible, the use of NFTs will increase dramatically. Some market insiders have already called for this initiative to be pushed in 2022, but it remains unclear if this will happen.

If more use cases are realized, it will spark more attention and interest in exploring the new NFT realm. The NFT ecosystem continues to grow as its appeal extends to countless industries. The future of decentralized art, sports, bonds, and other areas will be strengthened. This, in turn, will pave the way for more users to enter the cryptocurrency space.

It is increasingly evident that creativity is being encouraged and stimulated in the NFT space. It is a pursuit worth chasing and holds great potential. Although it remains an emerging space, it has already sparked interest from both within and outside the cryptocurrency community. Its steady growth strongly suggests the level of participation in the future NFT community.