NFTs Are Here to Stay, Here’s Why
If you’re an outsider looking into the Crypto / NFT world, seeing a bunch of JPEG images of apes and rocks selling for millions can seem absolutely absurd.
As it should be…
Because it’s ridiculous.
However, in the long term, NFT will fit into our daily lives, whether it’s a ticket to a live show or a collectible card like Pokémon.
NFTs were created to tokenize real-world items which makes owning, buying, and selling the item more efficient. Tokenizing an item as an NFT reduces the chance of someone being able to copy your creation.
NFTs have smart contracts which enable the creator to add unique information to the item. Smart contracts allow owners to add royalties on future sales, add links to the item, create rules for each owner, and much much more.
How will NFT be used in the real world?
There are so many different ways in which NFTs will be integrated into our daily lives, but here is an example that is most likely to bring mass adoption to NFTs:
Gaming
The gaming industry is estimated to be worth over $200 Billion in 2022. Esports, Twitch, Facebook Gaming & YouTube have been directly involved in helping the industry grow over the past 5 years.
Fortnite, COD Warzone, FIFA Ultimate Team are some of the most popular games for players which offer Season Passes & In-Game purchases. Those in-game purchases such as player skins, new weapons, and player trading packs can be purchased via their internal stores.
Players don’t own these in-game items which restricts players from being able to sell their assets.
Crypto Gaming is currently worth over $21 Billion in 2022 and that number will only grow as the industry gains more traction. Crypto Gaming is stored and built on the blockchain which allows for Smart Contracts and NFTs to be integrated into the games.
Players are now able to own their in-game items, buy, sell, trade, and convert these back to dollars. Smart Contacts can also allow players to level up their items by playing games. This will increase the value of items that reward the player as they play the game.
To put this into contrast, FIFA Ultimate Team allows players to create their own club, buy their favourite players and play online with Friends. The ultimate team allows you to buy player packs/cards with different level ratings, which can be purchased with FIFA Points.
In the future players will be able to buy and collect player packs on trading platforms such as OpenSea & Solanart. Players can then use those cards in the game, level them up, and then sell for a profit.
We are still in the early phases of NFTs but within the next five years, we will start to see the big players such as Microsoft, Activision & Sony releasing games on the blockchain.
