The Future of NFTs — Summary
The following is a list of key takeaways from the article concerning NFTs in a form of a “knowledge pill”.
The following is a list of key takeaways from the article concerning NFTs in a form of a “knowledge pill”. It will bring you closer to the idea of NFTs having almost nothing to do with graphically substandard profile pictures.
However, spending time reading the original article will help you see a bigger picture of the societal changes that are about to take place as a consequence of the use of Non-Fungible Token technology.
Let us recap the most significant points.
The Bitcoin
The introduction of Bitcoin created a new way to transfer funds.
But there is more to Bitcoin than transferring funds, both technically and socially. It might allow us to rebuild huge parts of societies in various ways.
The Database
The present world is built on databases, which leads to entrusting a number of Trusted Third Parties with our personal data. The more data we entrust to some entities, the more dependent we become over time.
The New Medium
The inception of the Internet led to immense change within society.
All of a sudden, people have realized you do not have to be New York Times to publish online, and you do not have to be Walmart to sell things via the Internet. The individuals got the chance to express themselves and connect with people across the world.
The foundation of the further revolution has been built.
The Consumerization
The technology becomes consumerized once we stop talking about the technology per se.
The fun and ease of using NFTs allowed the consumerization of crypto without talking about technology. People were more interested in the graphical aspect of the technology than its possibilities and vision.
The Distorted Image
The distorted image of Bitcoin, Web3 and NFTs comes from trying to understand it via theory and not by practice. It is as if you were reading how to ride a bike without ever seeing the bike itself.
One cannot understand something without doing it.
The Incentive
The leading incentive for any large company or brand out there is monetization, straightforward or not. The end result is profit or building community to monetize it along the way.
The Aggregate Level
Everyone belongs to some community.
On the individual level, we might be very similar as members of two different or even opposing communities. Yet the differences will be clearly visible if we look at the aggregate level.
We might be similar as individuals, but we differ as a group.
The Distribution
The art distribution is making a transition from the pre-internet to the post-internet business model right now.
The traditional art galleries and similar places are here to stay, but things are going to change.
Democratizing the technology
The wider range of audience gives you higher chances of finding a group of people who will truly like your style and will buy your creative endeavours.
Gaining access to the global market and global audience is a game-changer for all the people working in creative professions. The moment we, as a society, will acquire decent technology to transfer intangibles, the spread of art and creativity will accelerate immensely.
The Lifestyle NFTs
By being a holder of a BAYC NFT, you are allowed to freely use the franchise or even create your own brand based on the Ape you own. It is a game-changing idea as you are not solely responsible for growing your brand.
This is how communities can scale globally and gain millions of followers.
The Visual Arts
The NFTs today are primary visual arts, but there are a variety of things that can and almost certainly will happen with music as well.
Building really good games is like making a movie. The process takes time and money, as well as extremely talented people. It is way more complicated than just putting a random NFT collection into some low-quality game.
The societal intangibles
Humankind is designed to live and think in narratives. It is how individuals and societies organize themselves.
The Human Rights, General Motors, the US. None of these things exists. Those are just frameworks allowing us to organize people and resources in a coherent manner. It is how you go from societies of 150 people to millions.
The Medium
A society with TV is different from the one without TV, just as a society with the Internet is dramatically different from the one without it.
Each time new technology or service got consumerized we ended up with a slightly different society.
The social construct
The law is also a social construct.
The sole reason paper means something is because we, as a society, have agreed upon it a long time ago. Over the course of the decades and centuries, it has solidified so much we are not even aware of the underlying social agreements anymore.
The house itself is very tangible, but the right to live in it is not.
The Real Metaverse
The real metaverse is the Internet we will see in the near future.
The Augmented Reality will be with us permanently. During our conversation, we will talk about something and have it displayed in front of us. It will be another layer of the Internet we use every day.
The problem with Web2
Integrated ecosystems are limited to the will of the creator companies.
Twitter might not want someone to use its platform, and it is a completely sensible business decision. No biased opinion or affections, sheer business. The issue is, once you are banned from a platform like Twitter, you are cut off from the global short messaging centre.
That is something far more significant than just a business decision.
The Modern Exiles
We are not going to be able to live in a modern society without the use of even small parts of the metaverse. Socializing with friends, getting a job, and using the basic services become unavailable once we get banned from the metaverse.
The Endgame
Any system capable of having God’s eye view on people will not be tolerated by the state as it would be too influential and powerful to exist on its own.
The social credit system being built and used in China is strangely similar to what metaverse might look like. Leaving the visuals aside, the mechanics and possibilities of usage are astoundingly similar.
The power of CBDC
How can you stop a person from taking a taxi in New York?
You have to arrest the person; otherwise, you have neither the authority nor the possibility to lawfully stop someone from taking a taxi.
The moment we introduce and spread the metaverse with the use of CBDCs, within seconds, we will be able to flip a switch and revoke the access to use taxis in a given region or the service as a whole.
100 million people of NFTs
Within the next couple of years, we will see more and more brands and institutions issuing NFTs.
The default thing to do with NFT is to use it; whereas the default thing to do with Bitcoin is nothing. That is why user experience and interfaces have to be easy to navigate and use.
The UX — we’re hiring!
The user has to be sure his funds and NFTs are secure even when his knowledge of the technology is limited.
Transactions have to be easy to make, and every potential user’s mistake identified and prevented. In the world of multiple blockchains, common standards have to be set in order to reduce or even remove the boundaries separating users.
The Game with Institutions
If we were to maintain the same attitude towards the Internet in the early 90s as we are having towards Web3 nowadays, the Internet would have never become what it is today.
The Impact
The impact we can make today might set the rails for future generations and the technology of NFT. Therefore, we cannot play games on our own within small communities; otherwise, we will end up being a niche community — forgotten and neglected.
NFTs can represent any off-chain asset that is non-fungible and move it to the metaverse allowing us to build bridges between the off-chain and on-chain world.
The simplest strategy
Remove emotional bias — Buy a coin or NFT and assume it will go to zero.
Stay active — Wisdom comes from experience. You cannot short-circuit it.
The changing world
There is nothing more painful than working in an industry that is slowly shrinking.
You worked as hard as anyone else, but you cannot win against the whole market. The economy constantly gives signals, and all we have to do is to stay alert, observe the world and make the change when the time comes.
Look through the developing industries and see where your core skills might be in need. A little bit of learning and shifting your core skills to work on other tasks will be a life-changing decision.
Conclusions
Stay active, learn, experiment, and help build the future.
Here is the link to the original article concerning NFTs.
I highly recommend reading it if you want to understand the true idea of NFT technology instead of listening to hate comments providing no value besides emotional stimuli.
Enjoy!
~M.E.
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