Wednesday April 24, 2024

The future of NFTs

Our children should know about the metaverse, NFTs, blockchain, and other digital technologies that are set to become game changers

By Dr Imran Batada
September 08, 2022

Non-fungible tokens (NFTs) are non-modifiable digital assets that represent artworks, music pieces and other real-life objects and sit on a blockchain. The NFT market is robust and continuously developing, leading to a rise in NFT users and transactions.

The NFT collection is built on community, culture, and utility, and it is an excellent indicator of how innovation happens. NFTs have a lot of potential that allows investors to actively develop strategies to ensure the right returns. NFT developers are designing more engaging utilities. For example, some travel and entertainment companies are selling tickets through NFTs. This removes the need for any kind of customer service in between.

NTFs will play a huge role in the development of the metaverse. It is estimated that the emerging digital ecosystem will generate one trillion dollars in annual revenue in the near future, which means that NFTs will become a big building block in the digital world.

The development of NFTs and the metaverse will lead to their complexity in trying to mimic real life. The digital ecosystem is aimed at building virtual worlds where people can even actualize infrastructure and experience using an avatar through virtual reality and augmented reality, before the real infrastructure is made.

The development of NFTs, blockchains, and cryptocurrency will lead to more employment opportunities and transparency. NFTs are becoming more popular in different industries and professions that deal in their trade.

Traditional investors were quick to dismiss cryptocurrencies and NFTs when they made an appearance. However, people are changing their perceptions with time. It is believed that our lives will become more virtual in the future – for example, remote working, virtual meetings, online shopping, digital products, etc will become more common. In the future, not only will we buy virtual games, but we will also deal with real estate and stocks in the virtual world. Most things will be turned into an NTF token that can be bought through cryptocurrency. Video games have a huge market and NFTs would fit perfectly into the virtual world, allowing players to buy unique game assets.

NFTs have enabled artists to offer digital originals without any middlemen and are playing a huge role in digital ownership, digital communities, tradeable game assets, and the ownership of metaverse assets. NFTs will enjoy a significant role in online communities, events, purchase of video game assets, digital identities, and assets.

Blockchains, especially the Ethereum blockchain, are the key enablers of NFTs. The blockchain will be key to ensuring that the current system remains safe from any hackers. Therefore, all kinds of online transactions will be safe with no third-party interference. This will be part of an effort to change the existing system from centralized (Web 2.0) to decentralized (Web 3.0). Through decentralization, individuals will work independently, without having to rely on an intermediary.

NFTs will also play a huge role in verifying original items from counterfeit ones. This also goes for the verification of academic credentials. No one will be able to draft forged academic credentials, allowing hiring managers to easily verify genuine certificates. All kinds of certifications will be easily verified.

In the same manner, different products will be verified. Many people imitate original items and sell counterfeit ones with impunity. Therefore, it will be easier to know which seller is genuine.

NFTs will boost more independence, allowing artists to create items and sell to their audience without waiting for long processes. Even students, once they come out of grad school, will not have to wait to get employed, but, due to this independent capability, be able to creatively create digital goods or engage in freelancing. This will also reduce unemployment rates in different parts of the world.

Additionally, these digital assets will play a role in the metaverse, boosting digital identity, items authentication, AI NFTs, personal health data monetization, business, secure transaction platform, true win-win technology, smart contracts, art selling, tickets, events, virtual worlds, and digital commerce.

Through NFTs, artists will have more control over the work they produce without depending on corporate forces or intermediaries. These artists can connect easily with customers and sell their work directly to customers. NFTs will provide access or ownership to unique items. These digital assets can play a huge role in solving the issues in the insurance sector, reducing all forms of fraud. They will also allow creators and artists to own their content and data.

The future of NFTs seems promising. In 2021, NFTs had a market size of approximately $41 billion, catching up to that of the traditional art market. Young people, freelancers and artists will greatly benefit from the growth of NTFs. The buying and selling of goods will be much easier.

NFTs will be a game changer. They require the implementation of different strategies and investors to turn this prediction into a reality. Many professionals in the healthcare sector, architects, designers, educators, and other industries will greatly benefit from the emerging technology. Students will learn things practically instead of relying on the theory part of books.

Schools need to start teaching students about the future of the digital world. Our children should know about the metaverse, NFTs, blockchain, and other digital technologies that are set to become game changers in years to come.

The writer is CTO & director, Centre of Information Technology at IoBM.

He tweets @imranbatada and can be reached at: