Learn more about NFTs, what they can be applied for and how they will change the world.
The non-fungible token has come a very long way from Crypto-Kitty currency to high-end virtual art collectibles and recently becoming one of the hottest celebrity marketing tools around. Searches for “NFT Meaning,” “What is NFT?” “Crypto NFT” and “NFT Marketplace” have skyrocketed up the Google rankings as millions and millions of people demand to know precisely what these unique little tokens are.
And the interest is worldwide, cross-cultural, and often coming from countries you wouldn’t expect. So, for example, what’s the link between China, Canada, Singapore, Venezuela, and New Zealand? They’re all in the top ten list of the most searches related to NFTs in recent times.
So what are NFTs? The short answer — they represent digital assets on the blockchain. The long answer — They’re quite likely the most accessible bridge between the natural world and the metaverse, both practically in that NFTs are becoming increasingly real in both worlds and conceptually due to their accessibility and public appeal. They’re a lot easier to understand than most blockchain concepts, and they’re a hell of a lot more culturally relevant too.
People ‘get’ NFTs; they make sense because they represent actual digital items and real value, and now, as NFTs prepare to enter their adolescent growth phase, they’ll be representing a whole lot more too. So let’s take a closer look at six places this crazy growth spurt is taking it.
- The Latest Fashion
- DeFi NFTs
- NFT Communities
- NFTs And The Metaverse
- NFT Virtual Real Estate
The concept of NFTs having a mirror image ‘twin’ in the real world is becoming increasingly popular, and Boson Protocol is an entity that believes this is the way forward. This decentralized commerce protocol envisages a world where physical goods and services can be bought in the metaverse as NFTs and vice versa.
They’ve built a fascinating virtual mall-type space known as the Boson Portal, where Decentraland users can browse for items and receive the real thing at their doorstep after placing an order. The vision is for every product or service to have an NFT equivalent and for every NFT to have a physical twin, both of which have value and are collectible and coveted.
The next step? Boston Protocol 2.0 will allow brands to join an e-commerce platform similar to Shopify and sell directly to the Metaverse. In addition, there are big plans afoot to include other virtual environments, including gaming universes such as Fortnite.
The Latest Fashion
NFTs have had a close relationship with the art and fashion world, with the latter taking things to the next level recently. In September of 2021, Dolce & Gabbana sold a nine-piece collection of NFTs for $5.6 million. The Collezione Genesi included both actual garments and digital ‘twins’ in the form of NFTs. High-fashion using twinning to stunningly profitable and ground-breaking effect.
Two weeks before that, a new kid on the block, Aurobors, went a step further and showcased their line of digital clothing that you wear using AR. No, this wasn’t a techie convention. It was the London Fashion Week. Augmented reality ‘wearable’ fashion in the form of NFTs might seem simple but what it represents is a new way of thinking about ownership, fashion, and the use of digital items.
Since NFTs have real-world value in that they can be bought and sold, there is an increasing trend to use them as collateral for loans and other financial interactions. The thinking behind this is that loans can be applied for and arranged online by simply handing over NFTs as collateral without worrying about financial intermediaries and debt-collectors in the case of a default. In these cases, ownership of the NFTs will simply be transferred to the lender, and life goes on!
There is also talk of derivative and secondary markets that recognize the value of certain digital and online items, even if the platforms they are currently on are not NFT-friendly. Fortnite, for instance, now has an array of coveted items that users pay V-bucks for, but none of them have any real-world value. Imagine if these items were for sale in a derivative market, though? A mirror item is available for purchase to the highest bidder, with the Fortnite player having to hand the coveted items over once payment is made. Ideas like these are pushing the envelope when it comes to recognizing the value and potential of NFTs in the DeFi world.
Let’s say you have a breathtaking collection of NFTs that include their real-life counterparts. You love wearing the real-life gold watch, but what about the NFT virtual version? Who gets to see that? How are you supposed to show it off and perhaps get some offers to purchase?
The prediction is that communities sharing a passion for NFTs will develop a platform specifically for the discussion, flaunting, and flexing of NFTs, which could take the form of augmented reality or virtual reality, perhaps even as part of the MetaVerse!
NFTs And The Metaverse
The role of the NFT in the Metaverse is and will continue to be a vital one. The creation of the Metaverse is already being thought of as something that will encourage creatives to own their creations and sell them or collaborate with other creatives in creating the Metaverse.
The ownership of these creations will take the form of NFTs, and that is a fascinating concept. NFTs will also be stored, displayed, and appreciated as pieces of art in the Metaverse and will play a massive role in the gaming space hub.
NFT Virtual Real Estate
People are running out of space down here, and while some people are looking for more room in space and on Mars, many people are creating a world where NFTs are used to purchase pieces of digital property and own it, rent it or develop it just like they would with authentic pieces of land.
You can currently buy virtual property on several platforms and develop it as you please. People are queuing up to purchase land in the metaverse, and believe it or not; there is already the very first Virtual Estate Agent called Metaverse Property.
Their focus is apparently on buying, selling, and managing business properties and offering rentals and land development, all within the metaverse on platforms like Decentraland, The Sandbox, Somnium Space, Crypto Voxels, and Upland. Exciting times indeed!
NFTs are fast bridging the gap between the virtual and real world. They are helping people to understand how crypto and blockchain work in terms of their association with physical items and digital assets. They represent real value and extend this value association into many other worlds and applications, opening up brand new possibilities and ways of thinking as we all look towards the dawn of a brand new era. They’ve come so very far already with the first chapter for the non-fungible token still just getting started — we’re certain the next chapter is g4oing to be just as intriguing as we peer into the future of the Real NFT Revolution!