How will the future of NFT affect industries?
NFTs, also known as non-fungible tokens, have recently entered our lives rapidly and are now reaching across all sectors.
NFTs, also known as non-fungible tokens, are becoming increasingly popular among artists, sports figures and the video game industry. But NFTs may not just be a hobby or a source of additional income for gamers, Mark Cuban and ultra-tech enthusiasts.
The debate about the future of the NFT may soon come to an end.
We have seen how companies that have rejected or lagged behind many of the innovations that are the common result of digitalization and globalization have been left behind one by one in the digital business world. The same situation could apply to non-fungible tokens as well.
During a time when the NFTs' revolutionizing the world of employment is discussed, the more you know how your business can be shaped around the future of NFTs, the sooner you will be able to benefit from this new trend.
What is NFT? A short reminder
In essence, NFTs are unique data, generally containing information for a specific item or about a specific person. Their unique aspect is what makes them "non-fungible", as opposed to something like the US dollar or Bitcoin, which are fungible.
While an NFT can certainly represent an artist's work and bring in high figures, it can also represent something as basic as a birth certificate, property deed or university diploma. For an NFT in this area to be trustworthy, the buyer needs to be able to trust the issuer of the token, the blockchain on which it exists, and the smart contract interface between the two.
How can NFTs benefit employers and businesses?
Those who want to send confidential data like medical records, employee files or even security clearances can encrypt some or all of the information held in NFTs to provide privacy-protection features.
A code is needed to view the data inside the token (NFT) and for recipients to decrypt the token. Instead of allowing recipients to edit it or giving them unlimited access, this code is read-only and can allow single-use access. Thus, users' confidential information is both securely protected and instantly deliverable, while the location of the data remains public and the owners retain the ability to send it to whomever they wish.
As the future of NFT is rapidly taking shape, many big companies are acting fast in order not to miss this train. This NFT revolution, which has already begun, is supported by many companies such as Facebook (now known as Meta).
NFT and Web3
- Twitter integrates NFTs with its new profile picture: Twitter has brought NFT integration to its platform. The platform is also trying to tap into the growing hobby of NFTs, where visible virtual artworks take on a new personal life and generate billions in income. Users continue to rapidly adopt the trend for different content that they can use as reputable symbols on social networks.
- Instagram starts testing NFT support this week: According to an announcement by Instagram CEO Adam Mosseri, Instagram, under the Meta umbrella, begins testing NFT support this week.
- Nike creates NFT verification on shoes: Nike has bought a virtual shoe agency that "metaverses" NFTs and shoes. Nike sued an internet marketplace for launching non-fungible tokens (NFTs) based mainly on Nike shoes, testing the limits of crypto trademark law and what an NFT is.
Is the Future of NFT not as bright as predicted?
NFTs are not as fragile as physical collectibles, you may not drop it and break the frame, but there are other problems that can arise. These problems come with any digital product.
Here are some of the problems that can cause NFTs to fail:
- The corruption of the image formats of file formats
- The crash of the websites where you store them
- Forgetting passwords to access websites and NFTs
- Price volatility of the cryptocurrency used to create and sell NFTs
But it is questionable whether these reasons are sufficient for major decisions such as fleeing or withdrawing from the NFT market. These potential problems might as well be some things that can be solved with better systems and technological advances.
There is one more point we should pay attention to here. NFT scammers and the fake contracts they publish. The amount that scammers have collected from those who are not careful, do not follow the details and try to make money the easy way in the NFT market is almost 14 billion dollars in 2021. For this reason, you should read the contracts carefully in every transaction you will make while buying and selling.
Can We Make a Definitive Prediction About the Future of NFT?
The truth is that nobody knows exactly what lies in the future. However, it is clear that many big players are heavily investing in NFT technology.
Andreessen Horowitz, the investment company that established a crypto research team led by Columbia and Stanford universities this month, is one of them. Last January, BreederDAO, defined as the NFT asset factory, received an investment of 10 million dollars under the leadership of Andreessen Horowitz. This investment, carried out through token sales, shows that Web3 technologies will now be actively used in many parts of our lives.
Of course, there are problems that need to be addressed. But at the same time, this technology is potentially filled with so much uncertainty and opportunity that it cannot be dismissed or ignored.