Non-fungible token (NFT) is like digital pokemon, a digital collectible with value. According to a report from Skyquestt, the global non-fungible token (NFT) market had a 2021 valuation of USD 15.70 billion and is projected to grow to USD 122.43 billion by 2028 at a CAGR of 34.10% during the forecast period (2022–2028). But From the market tracker of NonFungible we can see that the NFT selling graph is roughly downward. During the recent pandemic, NFTs have got significant attention, and some NFTs went viral because of their high-priced sales. We will try to explain why the NFT market is not the same and what is the future of NFT market.
Future of NFT market and economic relation (with example)
NFTs have ridiculous prices. It shows the NFT impact on economy and gets explained away by saying it's an art.
Collectors buy many things, such as Vinyl records, Comic books, recorded music, and stamps, not because they have any excellent regular use but because they love it. Therefore, they invest in buying unique things; many do, no matter what.
People with art preferences like these things, and NFTs are like that, so the metaphor is collectibles because it puts it in the asset class that justifies its value.
People are already spending a lot of money on the NFT marketplace. Therefore, rather than attempting to introduce it into a regular market, we incorporate this new technology into something where we already have a niche market because doing so is simple.
Social media has changed over time. In the beginning, people felt doubt about investing time in social media. Companies worried whether social media like Facebook would stay or be a fad. But now, there is no doubt about keeping social media presence for personal or business purposes.
Today some social media hold a record-breaking share in the market. But many social media came and lost their market after a while. The time and money investment on those are total loss because those social media do not hold any information for further use.
NFTs can resolve this issue because it creates a permanent piece of property. So, if you update any post image, audio, or video on a social media like Facebook and if Facebook completely closes its service, NFT blockchain will still have the post updates you can carry on other NFT-enabled social media.
Consider buying a book on Kindle. You are only buying reading permission for that digitally printed book. It's not NFT buying. But buying a book on Kindle does not give you the owner of that book. You can not use it anywhere you want. If amazon does not make Kindles, you can not read that book. So, the actual digital assets are not in your hand.
People may argue that amazon's not a further investment in Kindle because it's a profitable business for them. But people should not deny that possibility. There are many examples of promising online platforms stopping investing in product development and giving digital services. One good example was shutting down the Microsoft e-book store in 2019. As a result, a giant company like Microsoft has gotten rid of its e-book service, and people lost their books instantly from their devices.
So, buying a digital asset in a stock market means you are not buying that asset; you are only buying the license for accessing it on a particular device.
Let's consider the gaming industry to see how NFT can bring revolution. There are many games where you can buy characters or skins like new skin in PUBG game. This skin will be limited to only PUBG. You can not use it in Fortnite or Call of Duty. If PUBG shuts down their business or all the server crashes, you will lose all your data.
NFT technology can be used to use the same skin on different games. NFT will ensure the uniqueness and transferability of your favorite gaming skin. Moreover, you can invest in gaming skin as you will not worry about reuse.
At the beginning of social media, there was no clear direction regarding content monetization. Social media has struggled to create rules and regulations for monetization. Finally, all social media has started to monetize content. Now online content platforms are flooding with ads. We see various types of ads in various forms of content every day.
But there are struggles for content creators to get social media monetization. People are copying digital content, and original creators are losing royalty opportunities. So reusing identical or similar content without a license becomes very tough though social media companies are working really hard on this.
Here NFTs can resolve social media monetization issues. NFTs are considered an asset that content creators are creating. So, the real content creators will be benefited from this social media NFT implementation.
People can carry NFTs with them anywhere and are willing to buy these assets, and the world has already witnessed some remarkable success in selling them. NFT is something that creates value instantly. More people are inspired now to create NFT because they see the value alignment. They are not collectibles only but digital assets that provide value and return on investment. So the NFT impact on economy is a prominent event for the current and future world economy.
Potential use cases for NFTs in future
When we talk about NFT, most assume that we are talking only about NFT arts. It's not true. NFT is used in many other industries. The use of NFT may be new for many of these sectors, but the potential is enormous. Below are some examples of NFT use cases that might provide real, tangible advantages soon.
Nowadays, gamers earn money in many ways like streaming, participating in tournaments, Game testing, Coaching, super chat, subscription, donation, and rewards. Gamers also spend money to buy characters, upgrade characters or unlock a new map. Most of these transactions happen between gamers and the gaming company.
NFT games are created with blockchain technology, and cryptocurrency is used for transactions. Here one can purchase or acquire unique assets like memes, gifs, emotes, player skin, avatars, and characters and trade them with other gamers. This asset sharing through a gaming network allows the gamer to profit more in cryptocurrency than in traditional ways.
Gamers are familiar with the concept of alternative currencies and the virtual world. That is why they are the perfect target for NFTs.
NFT allow in-game items to be tokenized and easily transferred or exchanged with peer-to-peer marketplaces. Gaming characters, abilities, appearances, features, and virtual land can be transferred using NFT technology.
NFT gaming is like the merger of finance and gaming.
One of the popular gaming platforms is Axie Infinity. They have introduced the AXS token. This is a Pokemon-style game. Players can earn AXS tokens from this game and update their profile and virtual assets.
Additional examples are Decentraland and Battle Pets.
These gaming platforms are doing great business, and gamers are being benefited.
In the near future, more gaming platforms will be built using this blockchain-based technology.
A ticket scam is one of the very common scamming. Unfortunately, scammers earn a lot from this scamming, and people miss their favorite events like premium movies, opera shows, or concerts.
This scamming can be stopped by using NFT technology because NFTs can verify the authenticity and ownership of a ticket, even the transfer record of a ticket. In addition, a company can also control the resale ability of tickets.
GUTS is a good example of NFT ticketing. They offer tickets for all markets, including museums, live streams, theatres, concerts, festivals, and more. Fans and organizers both are benefited from these platforms.
GUTS has developed a smart-ticketing solution named "GET Protocol." Any ticket company can use this protocol to provide transparent ticket service.
The large scale of using the NFT ticket system will minimize scalping and ticket fraud.
So, NFT can be the solution to the lost revenue of organizations. Furthermore, as ticketing info is in blockchain, it becomes easier to track ticket-selling records.
According to CNBC reports, around 12 percent of people fall into the ticket scamming trap. NFT ticketing can solve this issue. In addition, many reputed organizations are using this technology to catch customer trust.
NFT is not only art; it can be any essential document. For example, to verify documentation such as academic certificates, professional certifications, property records, driver's licenses, medical histories, passports, and birth and death certificates, NFTs can be used.
For Example, recruiters can verify the certificates of a candidate during recruitment. No fake certificates can pass this. This ensures the right qualified person's entry into the right job.
Many businesses also use NFT for Invoices, Business registration, Contractor or vendor agreements, company policy, and other purposes.
There are no notable implementations of certification NFT right now. However, companies like BLOCKCERTS is trying to make document verification service popular with blockchain technology. In the future, other new companies can take the initiative and try this potential use of blockchain-based certificate issue and verification systems with NFTs.
If people start to make their documents into NFT versions, there will be no hassle for identification and authority management. Now, we need to understand the needs of NFT documentation and create platforms to make it easier for people. Then, more technology investors can keep their eyes here so that this technological advancement can see the light very soon.
NFT for physical assets is a new term for many of us. This blockchain-based technology has brought a revolutionary way of physical asset trading.
NFTs can be used to verify who owns real estate, vehicles, stocks, bonds, and other assets. As a result, NFT ensures warranty, insurance, and legal proprietorship. In addition, it creates trust in trading assets.
Many countries are still considering permitting the trade of tangible assets as NFT. However, necessary rules and regulations like advertising and consumer regulation should be established as there is also the chance of money laundering and fraudulent activities.
The use case of real-world asset NFTs is getting less focused. But the potentiality of NFT in the physical asset is enormous. In order to create a better future economy, we must explore this NFT real-world asset.
Non-fungible tokens (NFTs) can positively impact the supply chain industry.
NFTs help simplify complex working steps by allowing us to follow the time-stamped metadata of goods as they move through the supply chain. As a result, this blockchain-based technology can reduce costs in supply networks.
NFTs can be incorporated into supply chains and logistics systems in various speculative ways.
We all know that a failed supply chain can destroy a business's reputation or the entire business. NFTs collect data and store data digitally throughout the supply process to fulfill your business plan.
Many companies have started using blockchain technology to give better service. For example, some luxury product industries have started using NFTs so their customers can know the product's origin.
However, they depend on the chain's various links using the same infrastructure to support NFTs.
Furthermore, implementing these systems might take time because many global players and stakeholders are involved.
NFT systems can be used for the trade of life-saving medicine. For example, NFTs can ensure accurate data on pharmaceutical products so people will not have to buy the wrong medicines or medical products.
There are many industries like this where NFTs can eliminate mismanagement and miscommunication.
We can all hope that to create a consistent supply chain, and more organizations will come forward to use the NFT system. NFT will help to grow business by avoiding disruption in future supply chains.
The traditional dividends share the profit percentage with investors. So owning stocks of a profitable company is always a reason for a wealthy and happy life.
Similar to share market stocks, NFTs can be used to verify ownership in a corporation. NFT owners will receive dividend payments in return. This dividend model might be used for virtually any asset that produces income.
An excellent example of an NFT dividend is EV Biologics NFT Dividend. They had issued NFTs to shareholders instead of a cash dividend in Q3, 2021. The company completed the creation and minting of the NFTs as previously announced. But there are some regulatory obstructions, and the Company has to suspend the dividend distribution until the FINRA permits this digital asset.
Though EV Biologics NFT Dividend is not successful yet, We can say that it is an outstanding first attempt for the entry of NFT into investing sector. The government should take necessary steps to make NFT acceptable in financial sectors so that other companies can adopt this NFT dividend system or even share stock.
NFT is traveling everywhere in the world. It has also reached the travel and tourism services. The travel business is growing with the latest technologies like blockchain, and till now, it's going well.
Few companies are using NFT to create their travel business in Metaverse. Instead, they are allowing tourists to create NFT from travel experience photos and giving premium membership and the opportunity to join customer loyalty programs.
Getexperience is an example of this type of travel company. They combine digital and traditional art to showcase in the Metaverse using NFT technology.
NFTs can be used for hotel room booking. A hotel can provide NFT against your booking, and you can also sell that reservation to others if needed. Travelers can buy hotel room reservations from anywhere using cryptocurrency. Generally, a hotel room cancelation process comes with many terms and conditions. With NFT as Room Night Token, visitors will get enough flexibility to sell or swap with others and do not have to cancel visits through hotel communication.
pinktada is an excellent example of this kind of service introducer. They are offering hotel booking with 3D Room viewing. In addition, they created a "token" model for hotel reservation tickets, which they call a "room-night token" (RNT). Visitors can use this to stay in the hotel, or they can transfer, sell or swap and get a profit.
Adding VR technology to the NFT Art fair has created a new virtual fair. "The First 100" is an excellent example of a Virtual NFT Art Fair. This type of NFT strategy can be used for many other fairs because it removes boundaries for physical attendance.
If you want to use your preferred name as a decentralized name for crypto wallets, websites, & other blockchain services, you can do it now. This entails creating a blockchain crypto address using a domain name. Some blockchain service providers have already given these services. Ethereum name service and unstoppable domains are two famous examples that provide these services.
A user's crypto address is their name, much like their Twitter or Instagram handle. One can receive and handle any coin, token, or NFT when one holds a domain name in this way. This blockchain-based domain is decentralized and provides more security than a usual domain.
More likely this blockchain-based domain name, we can create NFT where the domain name or crypto wallet info can be integrated like a QR code. Using this NFT allows one to communicate with others for transactions and information sharing easily. Moreover, this one NFT can give a person ownership recognition for all their creations. Thai type of NFT implementation will be revolutionary and maybe the future of copyright.
Sports is a good industry for implementing NFTs. Sports lovers love to buy their favorite player's photos, memorable moments, tickets for a match, etc. They will feel happier and more proud if they can get the unique collection NFT offers.
Many sports associations are starting to use NFT as a business strategy. For example, NBA officially manages a site like NBA TOP SHOT. Recently, FIFA World Cup 2022 has officially partnered with Algorand to provide FIFA NFTs. They have announced a new platform FIFA+ Collect for fans to own and collect FIFA World Cup and FIFA Women's World Cup moments.
According to a Market Decipher report on the sports memorabilia market, Sports NFT is expected to grow at a CAGR of 36.6% and generate US$41.6 billion in revenue by 2032.
Other sports industries will come soon. Then NFT will be a common term in the digital world.
Business people or investors will need a good NFT marketplace website to create a business with the NFT market. The NFT marketplaces are evolving, and more functions are introduced to improve the user experience. So, you will also need to develop a website that will meet the trending business needs to stand out in the market.
NFTBOX is a readymade NFT marketplace software having all the functionalities to create an outstanding NFT marketplace. Artists and owners can monetize their works easily and earn money from websites created with NFTBOX. Moreover, if you get this software once, you will get lifetime updates totally free. NFTBOX is a future-proof software with design and technology. So, you don't have to worry about the future of NFT market; initiate your NFT business and take the opportunity for now.
NFTs are creating digital property, and while they're big in art and collectibles right now, eventually, we're going to find that a lot of our online assets are stored as NFTs. So, NFT will become attractive for our digital assets because we have complete ownership over them. In addition, many applications can be invented in the future using NFT technology. So, we can say that the future of NFT market is not out of business; instead, it is evolving for the future market.
i) Will NFT go up in value?
- The market will be highly competitive for NFT in the future. So, there is a good chance that NFT will increase in value.
ii) Will the NFT market develop in the future?
- Sure. The NFT market is developing day by day. Visionary investors and organizations are sponsoring NFT development.
iii) Are NFTs bad for the economy?
- No. If we can use it properly, we can get benefits.
iv) Does NFT affect the economy?
- Partly yes, partly no. Of course, the impact of NFT on the economy will totally depend on how we implement this technology. But, till now, what we observe the usage of NFTs, we can say that NFTs have a tremendous impact on the economy.
v) Is NFT a growing market?
- This market has ups and down like any other, but it has excellent growth potential.
vi) Is the NFT market profitable?
- Yes. If you know how to invest in NFT and do marketing wisely, you can gain profit.
vii) Is NFT a digital economy?
- Yes. We can say NFT is the new digital economy element.