NFTs have proven to be the darling of the blockchain. With notable artists, musicians and even sports stars releasing their personal pieces and collections. The most notable milestones were the Beeple piece, The First 5000 Days, which was auctioned at Christie’s for $69 million. This proved to be a turning point for digital art and NFT, which went from being replaced by digital memes such as Jack Dorsey’s earlier tweets, GIFs and songs to the awakening of modern art.
More than just collectibles, it was a way the art world could display more pieces to more people. This took art away from some, where a piece attached to one’s wall can now be viewed by millions in a digital gallery.
However, NFTs hit the road. The news hit hard how mining a single NFT could consume as much energy as a household in the EU would use over the course of a whole month. This was a turning point for NFTs, with critics claiming that NFTs were bad news.
And yet, despite critics, the market for NFTs hit new highs in 2Q21, with sales of $2.5 billion so far, compared to just $13.7 million in the first half of 2020, according to Reuters. And yet, the sales volume is skyrocketing. OpenC, a leading NFT marketplace, reports monthly sales volume reaching a record high in June.
However, there is much more to NFTs than meets the eye. This is an era where virtually any tangible asset can be tokenized. Where backing up tokens with real assets offers many benefits, from security, automated authentication and verification of ownership, and a logical solution to the distribution and storage of goods.
Let’s take a look at some of the major themes where NFTs are leaving their footprints:
The current market is tough for vineyard owners. They often borrow money each season to develop their vineyard as well as to cultivate, cultivate and manufacture their produce. And yet, they see no return on their borrowings for months or years until their wine is gone into the world. If their crop fails in a year due to weather or infection, it puts them at risk of default. Tokenizing their product is like collateralizing against current or future yields, similar to the way futures on a commodity work.
YV is one such project that is tokenizing collectible (and drinkable) fine wines. Collectible wines are popular as an alternative investment for investors looking for the season. Bear
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” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>Bear Market, by allocating alternative investments in its portfolio. YV to represent ownership to its investors A token that gives the wine they buy. This means investors don’t need to concern themselves with the logistics and authenticity of the wine. YV, which aims to “be the source of collecting alcohol on the blockchain and across all metaverses.” It also serves an important role for winemakers and vineyards.
tokenizing game items
For true die-hard gamers, in-game collectibles are important. They are something to work with, something to collect and something to be proud of after working hours to collect them. For gamers, the idea of real-life ownership of their collectibles, the way they can keep them, sell them, or use them in other games, is a big deal. (You have to be a gamer to get it) And with the gaming industry heating up, it’s big business.
Hoard Marketplace allows users to trade, buy, sell, loan or rent non-fungible tokens (NFTs) for in-game items as well as digital art and domain names. Hoard gives game developers the foundation to merge their game items with the Ethereum blockchain. Hoard users “meet” in a peer-to-peer environment to interact with gamers and developers. The HRD token represents the tradable assets behind it, such as game items. In addition, token holders can stake their tokens for passive yield, and can transact with them and retain voting rights. Hoard is also promoting flash loans, which are instant loans for users, no credit check required.
“The loan facility on the Hoard market opens up new possibilities for NFT holders. This is the first step in the further development of the novel NFT functionalities/utilities that Hoard is going to introduce in the coming months,” said Hoard CEO Radek Zagorowicz.
trading card collectibles
People like to collect things. The latest and most popular craze to hit the blockchain is the token trading card. Many NFT marketplaces offer collectible business cards that can be collected, swapped and sold for profit, and are a popular place to start.
Taraska has built a product around this space for B2B, which gives businesses the opportunity to create their own personal business cards, which they can then give to their customers, or in fact they can build an entire business around business card collection Huh. The more rare or customized a trading card or NFT is, the higher its value. With Taraska users can create and exchange collectibles using their DEX.
Monetization of NFTs
The key to the popularity of NFTs and other products in blockchain is mass adoption. The more people who join the board, effectively the better the longevity and future potential of this unique sector. The trick here is creating products that are accessible and appeal to the masses.
One company that is working on this is Spores Network. They are manufacturer-focused and provide users with the opportunity to mint and transfer at a reasonable cost, hence increasing the profit potential of the users. They do this in a variety of ways, not least by sharing royalties with the creators. Spore is working on building the first NFT marketplace to sit on the Cardano blockchain, which comes with a number of advantages. These include mining and mining-related energy efficiency and super low transaction fees compared to both Ethereum and Bitcoin.
NFTs for Marketing Campaigns
As everything is happening online now, NFTs prove to be an effective way to gift marketers and incentivize users, in an automated and reliable fashion. Enjin, a leading ecosystem for NFTs, recently launched its “MyFirstNFT” marketing campaign, which has set the stage for the way we do marketing online. A new way for brands to interact directly with their customers, with no digital agency in between. The campaign dropped 50,000 unique digital art NFTs into a completely random group of users who interacted with its ads and social media posts.
The limits and capabilities of NFTs and Blockchain are endless. If you can think it up, you can create it. One thing we’ve learned over the past year is that people’s habits and patterns can change rapidly, no less than digital interactions. NFTs are not dead, they have barely started.
Image source: DepositPhotos.