Non-fungible tokens are not a new phenomenon in the crypto space as the advent of blockchain technology provides a useful foundation for creating an expanding economy for digital collectibles.
Amid the growing appetite for digital art, gaming utility tokens, and other forms of crypto collectibles, the NFT metaverse is experiencing an upswing towards widespread commercialization. Within the ecosystem there are numerous interfaces between different industries such as art, games and virtual real estate.
The 2020 DeFi hype also helped add more fuel to the NFT fire. Governance tokens and liquidity generation protocols appear to encourage greater interaction with the NFT markets, which has a positive impact on the liquidity of the NFT market.
NFTs, probably rarely as an asset in the game
Earlier this year, game analytics service Newzoo estimated the industry will have over $ 150 billion in revenue by the end of 2020 That number will exceed $ 200 billion over the next three years. On multiple platforms – including PC, cellphone, and consoles – game developers have seen their sponsorship spike after months of shutdowns due to the COVID-19 pandemic.
The interface between the gaming industry and blockchain technology offers one of the most attractive ways to use NFTs. Even the most laid-back gaming enthusiasts are familiar with tokens like FIFA Points and FUT Coins, or swap items for money in a personal market like the PlayerUnknown battlefields.
Outside of the game, these assets are often of little value. However, with blockchain technology it is becoming more and more possible to token these assets in-game. Additionally, the new technology provides a useful base layer to create a market for trading these NFTs within the game.
With NFTs as in-game currencies, real ownership of these digital assets becomes possible, which shifts the balance of power from game companies to the players themselves. Real Ownership offers the opportunity to market in popular niches like online trading card games.
This way, players can be sure of winning real money for the time they spend exploring these different game worlds. In the NFT markets, users can exchange valuable in-game assets for cash or even popular cryptocurrencies like Bitcoin (BTC) and Ether (ETH).
Blockchain as a common base layer could also create the possibility of cross-platform interaction in the gaming area. Users can move assets like rare trading cards or unique armor and skins across different titles as long as the games – especially if they were created by the same developer – use the same blockchain implementation.
Gaming platforms like Enjin are already working on creating a cross-platform gaming blockchain. In April, the company announced a Ready Player One-style crossover event titled “Cyborg’s Quest,” which will feature eight different Ethereum-based titles with a purse of $ 50,000.
In addition, the world of competitive gaming is already a huge industry. Earlier this year, market experts predicted that global esports sales will exceed $ 1 billion by the end of 2020.
Hungry artist? Mint and sell coins
According to information from Nonfungible.com NFT’s total sales volume on the Ethereum network has exceeded $ 130 million. The arts sector only contributed about $ 8 million to that number.
As previously reported by Cointelegraph, various indicators point to NFTs as a breakthrough for crypto art. Blockchain is already finding useful applications for determining the origin of valuable works of art. The immutability of decentralized ledger technology provides a framework for monitoring and tracking the ownership of works of art to ensure the authenticity of the item in question.
Blockchain is also finding acceptance in the online art sales market. In early October, Christie’s auction house sold a digital portrait of the Bitcoin code for more than $ 130,000. The news marked a milestone in the NFT’s artistic adventure as it was the first time a prestigious auction house carried out the sale of a non-consumable token. Artur Sychov, founder and CEO of the virtual reality platform Somnium Space, commented on the art on the blockchain and identified the art industry as ready for blockchain disruption, according to Cointelegraph:
“Art is one of the largest and fastest growing uses for NFTs. The intersection of proof of ownership and scarcity makes it a perfect match in heaven. So is physical goods. Buy a copy digitally and get a physical equivalent becomes big business and part of an ecosystem. “
Speaking to Cointelegraph, artificial intelligence artist Pindar Van Arman described the introduction of NFTs as a real source of intellectual property protection for artists. According to Arman: “Without her [NFT]you can reproduce your work indefinitely.“”
As digital artists look for ways to shape NFT, the concepts of Hecceity and Indexicality keep coming into play. The first describes the property of the uniqueness of an object, while the second examines the association between objects.
Some critics of the art of the NFTs You say This cannot have a demonstrable defect as it is possible to download a JPEG of the artwork, which makes the crypto-art file format superfluous. There is also a belief that crypto art can only achieve value status if there is social consensus with the principles of “boiled” property registration.
In this framework, artists can not only earn substantial commission shares for their works, but also receive royalties for secondary sales. Like gamers, artists can earn passive income in the NFT market. Dirk Lueth, co-founder of real estate trading platform NFT Upland, told Cointelegraph that digital memorabilia and crypto collectibles are just the tip of the non-fungible token iceberg:
“There’s the whole world of digital media. Once the technology gets a little more advanced and the blockchain also allows you to manage access to a movie, song, etc., the entire NFT world will see unprecedented growth.”
Virtual trading in the metaverse of NFTs
Whether through games or the sale of digital art, the NFT Metaverse seems to be on the way to creating the basis for a fully realized virtual space. ANDIn September, Cointelegraph reported that investors are rushing to acquire land based on blockchain technology.
Amid the technological advances in virtual reality and blockchain, developers of digital worlds are building immersive virtual ecosystems that enable various forms of virtual interaction. For those lacking in gaming skills or unable to create stunning works of art, land ownership in simulated environments offers another avenue for acquiring NFT.
Projects like Upland build digital worlds on the surface of the real world. Based on the idea of online card games, Players on these platforms can purchase properties that look like the real world.
Indeed, the virtual real estate landscape is beginning to capture all aspects of the emerging NFT market. When fully realized, artists can exhibit their work in museums and virtual art galleries owned by digital land and building owners.
According to Lueth, expanding the digital landscape will help create value for NFT goods and services: “When people spend more time in these parallel worlds, it is not a matter of if, but when other industries will discover that NFTs can offer new and complete business opportunities.“.
The consequences of the COVID-19 pandemic have also led to a re-examination of human interaction in different areas of life. In many countries, social distancing protocols have moved activities such as work and school to the virtual realm. Sychov believes that at some point humans will turn to a primarily virtual medium of interaction:
“The future of human communication will primarily be digital in virtual reality. And for people to exist in virtual worlds, they need a decentralized independent economy and proprietary protocols that solve blockchain technology and NFTs very well. In short, NFTs will be play an essential role in the exchange of goods and services. “