In the world of digitalisation, it is becoming necessary for us to become digital in every aspect of our life. We are dealing with a busy lifestyle, and thus it becomes inefficient for us to spend too much time on a particular day’s work.
We are more focused on delivering everything in a short time period. So we need the essence of technology and guess what! Technology has given us the opportunity to use the most efficient Blockchain process.
Blockchain is a decentralised process which delivers the anonymous and secure process of transactions and trading. Bitcoin is the first discovery of Blockchain technology, and we are still cherishing the fruits of it while trading.
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What Are NFTs?
Non-fungible tokens (NFTs) are digital assets that can be used to purchase and sell anything from videos to jpegs. It runs with the help of a decentralised Blockchain process (mainly on Ethereum), through which it can be possible to track the transactions and the ownership.
Well, it is different from Bitcoin because it is not interchangeable. Basically, NFTs are Cryptographic tokens which can represent a unique process of Cryptocurrency.
This article is focused on the existence and importance of NFTs in the future. Let’s understand the importance of NFTs by understanding a few things.
The Growth Trajectory Of NFTs
The “rare digital art” first appeared on the market in 2017, far before you may expect, and that is when the NFTs first hit the market. It was only a non-fungible token at the time, barely known outside of the most ardent Blockchain supporters.
From there to 2020, the change process was going on and stood to a portion where 30000 to 80000 NFTs were exchanged weekly. The change process shifted its gear in 2021, when $2 billion was spent during the first three months of the year.
Adding to that trajectory, the daily trading volume surpassed $50 million, and thus we cannot neglect the power of non-changeable tokens.
Aspects Of Growth
The main reason behind the popularity and growth of NFTs is the directness and value propositions for the creators. Previously a creator of art had to focus on so many things at once and go through all of them.
For instance, galleries, publishers, or record labels recognise the whole work. Now the paradigm shifted its focus to break down all the traditional processes and give full access to the creators.
Digital art is becoming the mainstream process, and Crypto-rich billionaires are getting involved in the process.
Efficient Trends
The process of trading and minting the NFTs is still complicated, and the Ethereum network is the only minting process of the Blockchain to date.
However, there are a few other chains, such as Binance Smart Chain (BSC), EOS, and Cosmos, that are trying to erase the issues regarding fees and throughput. But the user-friendliness of Blockchain is still untouched.
There are some effective trends gaining huge popularity to enhance the power of NFTs in particular. These trends are valuable for many users and thus for NFTs.
1. Play-To-Earn Gaming Revolution
The intersection of Blockchain and games was first recognized by the gaming company- Enjin. In 2017, it merged the Blockchain process with Crypto gaming and initiated the process of using NFTs for P2E (play-to-earn).
Games like Splinterlands and Axie Infinity are such games where the players can use the NFTs to purchase or sell the in-game materials or assets. Splinterlands initiated almost 4 million transactions last year, and that is showing the craze for play-to-earn games.
2. Celebrity Influence
NFTs are highly attracted to rarity, and it is being used as a business asset. Various platforms like Ethernity are using limited edition NFTs of the artists and big personalities for the audience to increase the hype.
In addition, the NFTs are not limited to the art but it is also exploring the world of music and videos and sports industries, including gaming. So, the celebrity aspects are increasing rapidly.
Final Thoughts
No doubt, NFTs are the future assets. Thus we cannot neglect their importance in the digital world. However, NFTs are not following the trends; instead, the trends are following NFTs, and that is a big sign to ensure that NFTs are going to stay with us.
What are your thoughts about NFTs? Flame in the comment box with your thoughts!
