What is the future of NFT? Industry insiders and experts are optimistic as Metaverse will witness technical innovations and more real-world use cases of NFTs will be explored this year. More brands are expected to leverage NFTs to fetch higher user engagement and build a Web3 community. AI will be utilized in the creation of a new generation non fungible tokens. Web3 gaming is expected to witness advanced NFT applications.
Will new opportunities emerge for digital artists in 2023? Will Non Fungible Tokens be able to regain collectors' interest? Questions are many.
The NFT market plummeted and trading volumes dropped drastically last year. NFT scams have become rampant. Will the bear market situation now, remain forever? As an NFT collector, art creator or investor, you must be wondering, what the future holds for Non Fungible Tokens.
NFT (Non Fungible Token) was the buzzword in 2021 but as soon as the Cryptocurrency market nosedived, the NFT market too plummeted. Trading volumes dropped over 90% since a record high in January 2022, from $17 billion
to $466 million in September 2022, according to Dune Analytics.
2023 is believed to be a crucial year by industry insiders to prepare for the upcoming crypto bullish season. Here is a low down on what the future has in store for non fungible tokens.
NFT and AI Collaboration
It would be quite interesting to see how AI and NFT together can redefine the Web3 space. Will this collaboration be a game changer? Only time will tell!
Web3 gaming will witness advanced NFT applications. Artificial Intelligence based utility items, especially in the video games format that incorporates Non Fungible Tokens are expected to gain popularity.
Will 2023 witness growing interest of brands in NFTs?
With the aim to fetch higher user engagement, grow their reach and web3 community building, big global brands are leveraging non fungible tokens. This year, more brands are expected to include them in their marketing strategy. They are expected to grow in popularity as with the layer-two solution Polygon is becoming appealing for business applications.
We may get to see more usage of NFT drops to heighten the “In-Real-Life” experience in future, just as it was witnessed recently in the World Cup with Coca Cola's NFT drop.
Starbucks had successfully launched an NFT based brand loyalty programme called Starbucks Odyssey for members participating in a few interactive activities who are rewarded with tokens that provide distinctive benefits to holders. Likewise, McDonald, Gucci and Samsung too utilised them for brand engagement campaigns.
Nike also has adopted a futuristic concept that lets their customers, who bought sneakers, flaunt them with their avatars. Porsche also entered this space for fetching more customer engagement.
Limit Break is preparing to give a free NFT mint to individuals during the next year's Super Bowl. Individuals would be able to scan a QR code to receive it.
Energy Efficient NFT Mining
The impact of mining NFTs on the environment can't be undermined. Ethereum 2.0 moved to an environmentally friendly proof-of-stake consensus mechanism that ensures less energy consumption. The reduction in energy consumption is over 99%, making it a green blockchain, as mentioned on the Ethereum website.
Technical Innovations for the Metaverse and NFTs
More innovations and technological advancements in the world of Metaverse will be witnessed this year. Layer 2 solutions will be further developed and refined. The new version is efficient as it can handle a higher number of transactions on DeFi apps or other apps effortlessly. And for these digital token transactions, users will now have to pay a lower amount.
NFTs and DeFi
As per industry experts, these digital tokens are projected to gather momentum in the decentralised finance (DeFi) arena this year. Individuals would be able to provide NFTs to a liquidity pool of a decentralised exchange. They may borrow cryptocurrencies against their Non Fungible Tokens and use them to invest in different assets. As indicated in the book 'Beyond Bitcoin: Decentralized Finance and the End of Banks' written by Steven Boykey Sidley and Simon Dingle.
NFT and Real-World Unique Use Cases
Digital collections providing some value in terms of real world applications will have demand and worth in future in the Web3 space. Unique use cases will have the power to alter the metaverse.
NFTs can be integrated into various applications, ranging from intuitive, technological advanced to multi level utilisations.
- Certificates, degrees and diplomas can be tokenised
- Tokenised badges
- Permits can be tokenised
- Tokenised validating labels
- and more real world applications
NFT and AI Collaboration
Will 2023 witness growing interest of brands in NFTs?
Energy Efficient NFT Mining
Technical Innovations for the Metaverse and NFTs
NFTs and DeFi
NFT and Real-World Unique Use Cases
- Certificates, degrees and diplomas can be tokenised
- Tokenised badges
- Permits can be tokenised
- Tokenised validating labels
- and more real world applications
What is NFT | Non-Fungible Tokens Explained
In simple terms, NFT is a digital asset that can be in the form of collectables such as art, music, tweet, game or virtual real estate. This term stands for a non fungible token, which is a piece of cryptographic token present on a blockchain.
The best thing about it is that it cannot be replaced nor copied as it has unique properties. It is a digital certificate of authenticity and ownership generated by blockchain technology that powers Cryptocurrency.
Each of these tokens is unique and can't be forged or otherwise tampered with. One can purchase, store or sell them on specialised marketplaces like Opensea where these token exchanges happen on the Ethereum blockchain, along with Polygon, Klatyn etc.
How Does NFT Work?
Now let's understand how it works.
NFT is an individual token that contains vital information. It may be purchased and sold like other physical forms of art pieces. Its worth is mostly determined by market trends and demand.
A shared public ledger records transactions that are maintained on the blockchain, such as Ethereum. The unique data on NFTs enables the verification and authentication of their ownership. It also makes it effortless to transfer the token.
Let's learn how to sell NFT art or digital collectables.
How to make and sell NFT art?
NFTs are sold on various marketplaces such as Opensea. If you want to convert your artwork, music piece, tweet or video convert it to NFT (known as minting), you need to upload it to the marketplace, and set a fixed price. Or choose the option of a timed auction. And then list it for sale.
We are mentioning below the steps to create and sell an NFT or digital content for which you hold the copyright.
Step 1- Choose a marketplace
There are numerous marketplaces to pick from such as OpenSea, Mintable, Rarible, Axie Marketplace, SuperRare and more. Take a look at these markets and choose the one that best fits your work and needs.
Step 2- Mint your NFT
The second step of how to sell NFT art is called minting.
Minting is a very easy process. You need to convert a digital file into a crypto collectable or a digital asset on the Ethereum blockchain. Fret not, if it's appearing complicated, as most marketplaces will give proper guidance on how to mint non fungible tokens on their platform.
Step 3- Connect your wallet
After you have chosen a marketplace, you will have to link your cryptocurrency wallet to it.
Step 4- List your NFT for selling
Here is the last step of how to sell NFT art.
You need to upload the digital version of your art and follow the instructions mentioned. Each marketplace has its own set of guidelines.
You can sell the NFT as a one-time buy or receive a royalty.
After uploading your digital work, you have to fill out the details and then after it's minted, you will have to list it for sale, you can fix the price or choose the option of auction.
The marketplace will compute the 'gas fees' once you have listed the Non Fungible Token for sale. This is a charge to record the transaction, deducted by the Ethereum blockchain. Based on how busy the network is, this charge will change. A good strategy to lower the gas fee is to list your item during non-peak hours.
You can use the Polygon blockchain to avoid the gas fee.
Hope you now have a clear idea of how to sell NFT art.
How to Buy NFT?
You might want to consider purchasing Non-fungible tokens. If that's the case, follow the steps of how to buy NFT as mentioned below:
Step 1
Before you venture into buying, first you need to have a digital wallet to keep your collectables and cryptocurrencies secure.
Step 2
Next, based on which currencies the token seller takes, you will need to buy some cryptocurrency, usually Ether. To buy cryptocurrencies, you can choose any platform such as OpenSea, Kraken, Coinbase or any other.
Step 3
You will have to transfer your Ether from the exchange to your wallet after you have bought it. Remember the exchange may deduct a little transaction fee. Next, you can effortlessly buy a digital token or collectable.
Hope now you know how to buy NFT.
What's the Future of NFTs?
With the current crypto bear market, the future of Non-Fungible Tokens is unclear but industry experts believe that NFTs are here to stay. With more new and innovative real world use cases, they will continue to expand outside the spheres of art and gaming, finding. Digital tokens with unique applications will be able to alter the metaverse.
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