NFT: Expectations vs. Reality
It wouldn’t be bad saying that the NFT industry is getting widespread and gaining attention all over the place. There are people who have grown and developed their careers in the industry whereas there are those who don’t understand the idea of NFTs and seem to despise it.
One of the challenges in the industry is the lack of knowledge of how it works. About 60%-90% of people in Nigeria and in other countries all over lack NFT education and don’t know what it is all about. People don’t get the full reason why NFTs exist even though they are eager to learn. That is because of their expectations of NFTs being a big industry but they always get demotivated by the reality of its technology(how it works).
Let me explain why this is this case below.
Non-fungible tokens (NFTs) are cryptographic tokens that represent a unique piece of art. It is a tokenized representation of digital or physical assets in the real world.
Within a blockchain network, they serve as verifiable proofs of ownership. NFTs are not changeable with one another and this bring scarcity into the digital world.
The expectation
Immediately anyone understands the NFT technology and becomes a part of it, what they expect to see in an NFT community is an environment where value is being created and shared. A scenario is, creators and artists creating digital assets and monetizing their piece without having to go through a middleman to sell for them, and if a buyer buys a unique piece of artwork from a creator, the buyer will get incentives by holding the piece over a period of time and when he chooses to sell the piece, the creator will receive a royalty.
Remember that this is a new technology and that means there will be the chance of scammers on the platform, who would want to steal money from newbies and older people that might fall victims. Popular ways they do this is by selling get rich schemes to people and knowing that people want to make money, they often apply this to their greed. They fall into the trap and buy NFTs for very huge amount with the intention that they will be able to sell it over a period of time at a larger price, only to see the value of it go down to almost nothing.
What NFTs look like in the future is to be embedded into every piece of asset from the physical world to the digital world through the METAVERSE, but as good as this sounds, this isn’t where it is now.
Hard reality
The NFT space looks like it’s not growing. This is as a result of how NFTs are currently used for financial gains only. New users and cooperations want to make quick money with the idea that they can create an NFT, sell it for huge price and exit. This is becoming rampant and there is no opinion about how to expand the technology. Instead of everyone on the space looking for new ways of utilizing the technology, they are exploiting it. They create their own “NFT piece” which is a copy and paste of the original art and sell it. Most users in the NFT space are ripping off the artist’s work. This makes it very hard to support the original creator.
The expectations of NFTs as of today are not possible yet. The NFT industry is still in its infancy and the current use case that is at work will only decrease new users from joining the space. It will only require some time for this to be obvious.
Conclusions
I am aware that this article sounds very harsh against the current NFT market, but sincerely, this isn’t. I am just trying to describe the phase of the NFT space as of today. I am sure that my opinion will change as more users and use cases start to emerge. I believe a lot of people, digital assets, goods and services will utilize NFTs in the nearest future. My hope is that the technology doesn’t lose its value before the time.
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