The actual value of the NFT has yet to be determined
It’s 2021. Super Bowl Champion Tom Brady begins an NFT company, Christie’s describes to all CryptoPunks, Saturday Night Live is causing problem with NFTs, Beeple and Mark Cuban service NFT’s use case – but here I am, CEO of a business which helps users secure to keep their immutable tokens, and I think the real value of NFTs is determined.
It’s significant to back up and bear in mind, though it looks like all of us knew about NFT all together, the reverse is true. As of this season, NFTs aren’t just a novel idea that won’t ever become a cable news story, but their usage case is still being researched in the blockchain market. While the recent hype is exciting, I feel this current iteration of NFTs is far from the revolutionary, revolutionary possibility they could actually unleash across the industry.
Connected: How NFTs, DeFi and Web 3.0 come together
What is the difference between NFT and Bitcoin?
NFT differs from the other crypto use cases. Bitcoin (BTC) is known as a sustainable shop of value, and blockchains such as Ethereum, Cardano, and Polkadot help programmers unlock utilities via the blockchain for various DeFi projects. NFT, on the other hand, is a uniquely generated token that uses the Ethereum blockchain to represent ownership of electronic assets in a manner that may not be changed over time.
Connected: Who is DeFi? NFTs are the rising stars in the cryptocurrency bloc
With everybody from retired professional wrestlers The Undertaker to Lindsay Lohan pushing their own NFT forwards to capitalize on the trend, this seems more like Ty Beanie Babies hype than revolutionary technology. Once the trend subsides or the bubble pops, all you have left is a useless title certification, which begs the query: why not simply click and “save” as to make a backup without spending $69 million?
Connected: When dollars struck the hype: Celebrity Biggest NFT Hits
This first form should not be the last
I’m kidding about the condition of the NFT today, but I’m very excited when I think of what the NFT will be like over the next decade. Functionality that has immutable proof of ownership or an agreement embossed to a blockchain has great potential to influence a broad selection of industries. Some of the most interesting use cases past the present iteration of NFT are:
- property: Imagine a near future where you could purchase a house and rather of a tedious procedure of paperwork and banking back and forth, simplify the procedure with ERC-721 (according to ERC-721 on standard NFT tokens Ethereum) from the original owner to you.
- Licenses and Records: Open a bank account, rent a flat, transfer possession of a vehicle, or try purchasing cold medicine at the local pharmacy – all of these need physical confirmation through ID and paperwork. Instead, what if you can confirm your profile and license the blockchain as an NFT?
- Material products : Even farther into the future, NFT can help us maintain physical goods and enable individuals who have been victims of theft via verifiable property rights. Imagine someone stealing your bicycle or a priceless piece of jewelry which has been passed down through your family. If you can link possession of these to an NFT on the blockchain, the real owner of the thing is incontrovertible.
Connected: The increase of NFT must go hand in hand with further decentralization
This year’s Oscars are coming to the NFT. That’s not half the use cases as amusement rights, game content, and much more are also currently being developed in DeFi.
Ultimately, the NFT is extremely interesting and a great idea in itself. However, if money and status are the two main things in adding value to anything, then the industry needs to have a deep breath and prevent turning its back on people before there are instances. Right now people are prepared to purchase memes for $500,000, and while I believe they lack the real value of NFT, I just hope people keep seeing what NFT can do.
Kosala Hemachandra is the creator of the non-industrial wallet MyEtherWallet (MEW). MEW has been a top wallet port for the Ethereum blockchain because 2015. Today MEW provides convenient and secure access to the whole Ethereum ecosystem, such as DApps, DeFi and much more.