The future of NFTs in the World of Web3
One of the rare media in which people can freely collaborate regardless of their color, nationality, gender, or location is video games. This attraction to all people originates from the game’s ability to let players explore other realities and create their own stories as they unlock new characters, weapons, and other in-game assets. More so than with any other type of media, the appeal of forging a whole new identity in a different setting creates a deeper relationship with users. Sadly, as of right now, all in-game assets, user data, game logic, etc., are stored on closed systems with full ownership remaining with the gaming companies. These applications are built on a centralized infrastructure. This indicates that the main way video game generate value is through players investing their time and money in order to boost the profits kept by game creators like Activision, EA, and Epic Games, to name a few.
Blockchain technology dubbed NFTs can enable players to contribute to an equitable ecosystem that incorporates the principles of ownership, interoperability, and transparency, reshaping the one-sided economic systems imposed by conventional games.
NFTs and Web3: A Connection
NFTs will soon be a component of the digital, which is being promoted by numerous artists, investors, and traders, due to their novelty, distinctiveness, and expanding demand. An unexplored market where it was challenging to get out there and make the art visible for people to enjoy has shown interest in it. Due to the internet’s digital transformation, Web3 will bring a stable state of data ownership for the general public. Additionally, there will be NFT marketplaces where artists can sell their NFTs. Because the internet will be decentralized on numerous levels, owners won’t have to worry about cyber theft, data breaches, information control, or invasive marketing.
For any asset that is represented by a non-fungible token, including digital assets, NFTs offer a complete history and proof of ownership. This functionality makes it possible to produce distinctive digital assets that are available for sale or purchase on an open market by anyone. NFTs have already developed in the present to offer increased utility in a number of industries:
- The secrets to online communities
- Tradable in-game goods
- Control of your username and other resources in the metaverse
NFTs are laying the groundwork for the digital communities, economies, and assets that will underpin the transition of the internet from Web2 to Web3.
Key to online communities
The use of non-fungible tokens as “membership cards” to a virtual community was one of the earliest developments in NFT use cases. Communities of holders naturally emerged around ownership of NFT profile photo collections like CryptoPunks and Bored Ape Yacht Club (BAYC). Following this concept, profile picture NFT collections like Oni Ronin have expanded today, giving owners of the Oni Ronin NFT collection access to special workshops and ceremonies, free airdrops of additional NFTs, and prize raffles.
NFTs have been utilized to grant exclusive access to offline events in addition to online groups and events. The immutable proof of ownership provided by NFTs on the blockchain makes the technology well-suited to address significant problems in the realm of event ticketing, such as forging and digital theft.
Tradable in-game assets
One of the major industries where NFTs have proved useful for players is the gaming industry, allowing ownership of paid in-game items. NFT “heroes” are available in projects like DeFi Kingdoms on the Harmony blockchain, where gamers may buy, sell, and rent them out. These NFTs not only give the player ownership over the in-game asset but are also productive assets that can be dispatched on missions to earn the player in-game currency and things. These goods can be used to make additional items to empower heroes, or they can be traded for cryptocurrencies.
NFTs have been integrated into blockchain games like DeFi Kingdoms, Axie Infinity, and Crabada, resulting in the development of thriving in-game economics where NFTs are valued according to their characteristics and statistics, which determine how much cryptocurrency they may earn. In these games, playing more is rewarded because leveling up NFT assets increases the likelihood that uncommon and expensive item drops will occur.
Redefining digital assets
Concerned that someone might take your metaverse username? Through the Ethereum Name Service (ENS), NFTs have already made it possible for users to own unique “.eth” Ethereum wallet addresses. To date, more than 671,000 such addresses have been registered. The unique addresses serve as an NFT and are incorporated into other decentralized services, streamlining formerly complex wallet addresses to make them more individualized and much simpler to remember.
In order to provide people with custom ownership of personal profiles like “www.nft.come/yourname”, projects like NFT.com are leveraging NFTs. This allows users to display and share their NFTs on a decentralized social network.
Non-fungible tokens are replacing usernames and wallet addresses as the primary form of identification for assets in the metaverse. NFTs are already being used by The Sandbox’s metaverse project to depict virtual places, furniture, and a variety of other things. The Sandbox generated more than $24 million in revenue in March 2022 from the sale of NFTs that represented the real estate in the metaverse. Leading companies and well-known individuals from a variety of industries, including Atari, Snoop Dogg, and the South China Morning Post, all owned land in the metaverse. NFTs are building the groundwork for digital communities, tradeable in-game items, and the metaverse economy while also revolutionizing the ownership and exchange of digital assets.
The current decentralized market can be altered by the internet of the future. It will successfully address netizens’ needs in terms of encouraging decentralization, privacy, and information freedom. But NFTs are advantageous and have a variety of applications, the markets will be developed to make them stand out from the competitors. The fractionalization of NFTs is a recent development that controls market liquidity and improves accessibility for people from diverse backgrounds. Additionally, physical goods and content frequently become tokens, opening up enormous opportunities for creators and influencers.