Beyond The Hype: What’s Next for NFT Technology?

This year could see a major breakthrough in solutions that move beyond functionless NFTs. What has happened so far in this area of digital technology seems to be just the beginning of a major shift. Not only is the terminology changing this year, but so are the use cases.

The death of speculative NFT
The madness of 2021 was badly cooled by the crypto winter that persisted into 2022. The previously Wild West environment has slowly been transformed and there are visible signs of consolidation in the technology. At Galaxis, we have long predicted that the post-hype situation would find a place for the now essential Web 3 technology. The time for speculative monkeys and crypto punks is over, it’s time to look at the bright side of a new generation of digital technology.

Porshe’s recently launched 911 NFT collection has proved that, despite high expectations, it is very difficult to sell a collection that builds on familiar routines. The sales volume of the unusually expensive NFT did not at all meet the company’s expectations. The collection has effectively become a playground for speculators, who are now trying to sell their expensively purchased NFTs for 2.5 Ether. Whether to consider the 2.5 thousand NFT sold as a success or a failure is an interesting question when many other campaigns are generating zero revenue. But the issuer’s not particularly practical car card has shown that in 2023 it will not be enough to get to the main page of Opensea, much more is needed to be a real success. The interest of the speculative community does not create real value and a company or a celebrity can offer a significantly more useful solution to their fans today.

Digital collectibles and AI art
Several factors are shaping the changing market for digital collectibles. On the one hand, artists are slowly coming to the point where they can have their works valued digitally. On the other hand, an amazing new and dynamic segment has emerged: the multitude of Ai generated works. We are witnessing a democratisation of art and of course, this is now causing a huge uproar in the digital world.

Digital collectibles and digital art collectibles are no longer exciting in terms of the masses of fans flooding in. It’s more about uniqueness, specialness, added value or amazing visual content. The unimaginable no longer exists. In the visual arts, the possibilities are almost limitless. Some artists have seriously rejected this advance of AI, but progress in this field seems unstoppable.

Digital club membership card
There is a clear trend towards the emergence of communities that no longer want spammers and scammers to be a nuisance among their members. The organisers of these communities can, of course, be based on any theme. Soon there will be music, sports, arts and business communities, exclusive websites, all accessible with a Digital Club Card.

A digital club card not only gives a sense of exclusivity, but can also offer real benefits and discounts to users. The implementation possibilities also allow for a wide range of community activities for companies offering loyalty and discount programmes.

Digital membership cards can also be used as city cards, combined with mobile solutions or traditional plastic cards to reach user groups that previously had no access to web3 solutions.

Merging real value and digital value
There is also a buzz around digital objects brought into fashion by multiverses. The real meaning of the strange-sounding “phygital” is that some of the objects displayed in digital spaces may also contain a corporate, artistic or other messages. It is becoming increasingly clear that these are ‘real’ digital assets, whose authenticity and ownership are difficult but important to clarify.

The market for ‘objects’ that can be bought in the metaverse will depend on the direction of the trend that is set to take in 2022 and on whether it can attract sufficient numbers of users to the emerging digital worlds. What is certain is that a significant number of the big international brands have not yet committed to the production of collectible digital objects. In contrast, there are companies such as Nike that have surprised users with a strong collection.

We can expect to see the convergence of physical and digital value in several areas this year. Museums may be particularly exciting, but the film, music and games industries may also find a slice of the pie.

Community choice, community funding
A decentralised world is increasingly demanding the kind of decision-making solutions that are possible in the world of DAOs. Tokens, which also offer governance rights to web3 companies, can be given community financing or investment capabilities.

For such communities, this technology makes it easy to determine the voting weight of participants and even provides rights and obligations to their owners. Their use can thus be interesting in communities where the interests of many users need to be regulated in some way. This weight can be given by the financial or other commitment expressed by the token.

At the other extreme: the soulbound token
An interesting direction in blockchain technology is the “soulbound” token, which is essentially non-tradable and somehow captures personal data on the blockchain that may be necessary to hold for many years. The solution proposed by Vitalik Buterin would be a fundamental building block for a decentralised society. Naturally, a solution based on NFT technology would make databases, registers and other web technologies that can currently be manipulated simpler and more transparent.

The development of digitisation solutions is inspiring a multitude of web3 developers, so 2023 could also bring a major breakthrough in the potential uses of NFT technology, which has previously caused tulip fever.

About Galaxis

Galaxis is a cutting-edge, no-code, out-of-the-box NFT toolkit that transforms and enhances the relationship between any creator and their community by infusing NFTs with unique utility traits, owner-specific benefits, and interactive communication opportunities. Galaxis’ end-to-end solution provides an essentially unlimited suite of decentralized community tools that allow anyone to grow, engage and monetize their audience.

Written by Tamas Peter Turcsan

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Disclaimer‌‌

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