NFT Next Wave: A Shift from “Collecting” to “Using”
NFTs took the world by storm early last year in 2021. It became so popular that it became an anthem in the blockchain space. But then, it was more about digital art projects, artists, collectors, and flippers.
Although NFT has successfully disrupted the traditional art world and added some benefits that were not deemed possible before, it also possesses a huge potential of transforming many other sectors aside from the art sector.
This brings us to the evolutionary point where we shouldn’t only see NFT as a form of collecting items, but rather as a way of using them. How so?
Well, as you read along, this piece will shed more light as to how NFT is shifting from a “collecting” to a “using” phase.
Collecting NFTs: The First Era
NFTs had static art images at the start of 2017. In auctions, they brought in big prices, but there wasn’t much you could do with them (other than look at and appreciate the artwork).
Multimedia NFTs were the following. This was a trend that the NBA Top Shot and its brilliant hoop highlights collectibles helped to establish. There was more to consider when using gamification with this type of NFT. The need for NFTs to perform additional tasks persisted, nevertheless.
Using NFTs: NFT 2.0
Although the study of value-based real-world application cases for NFTs is still in its early phases.
Non-fungible tokens can perform a variety of functions on a blockchain network and are cryptographically unique from one another. The value of an NFT utility token can go beyond the confines of simple investment and alter the way that we live, work, and play.
To comprehend a utility NFT, let’s assume the following simple instances.
Imagine a scenario where your home’s deed is an NFT. The deed would automatically log all modifications, simplifying closure, rather than needing to be generated each time the house is sold. Additionally, it would be much safer, as no one would be able to fake house ownership because they couldn’t change the NFT.
Additionally, this wouldn’t simply apply to homes. In any setting where ownership needs to be tracked and established, it would be helpful. The NFT would give a flawless record of the whole ownership history of an object, saving you time from having to look for the papers to show you purchased and possessed something.
Another excellent illustration is when you schedule a concert with roughly 500 seats available and 500 paper tickets. Regarding the ticket number, every single ticket is unique from the others.
But each individual ticket serves the same purpose — entry to the event. NFT utility concepts may now advise that 500 NFTs be issued rather than 500 paper tickets. Each NFT would be distinct and provide the same benefit of event entry.
Now, this is an effective way to use an NFT, rather than the customary collection of NFTs.
The Future Going Forward
We’ve only scratched the surface of the possibilities that NFTs offer. In the upcoming years, NFTs will upend numerous industries, and they will quickly dominate the digital environment.
The use of NFT utility will significantly alter how we purchase, sell, and exchange goods both online and off. Our current digital environment will undergo a transformation when they are introduced alongside blockchain technology.
But for these forecasts to come true, the market must continue to welcome new participants, guide aspiring artists and collectors on how to get started, enhance technology to make it more accessible, and, above all, never lose sight of the goal of bringing great art to people who will truly appreciate it.
About IncubateX
IncubateX is the 1st women-led incubator & NFT launchpad on web3. We are here to promote big ideas and revolutionary projects in clean energy, tech, social reinvention, sustainable manufacturing, and more.
We specialize in helping innovative projects incorporate web3 infrastructure -mainly NFTs- within their ecosystems while focusing solely on mission-driven projects that make a positive impact IRL.
IncubateX Official Links
Official Linktree | Discord | Whitelist
