Non-fungible tokens (NFTs) are on everyone’s minds.
Artists, celebrities, brands, game developers, and other enthusiasts make them, while collectors are ready to pay a pretty penny to own one.
At this point, everyone and their mother heard about millions spent on digital art NFTs.
It’s mindblowing, but how does it relate to a regular person? Are NFTs only for ultra-rich collectors? Or will art pieces become affordable to an average person?
In this post, we will explore what course the NFT obsession can take in the future.
Some people are ready to pay for beauty alone, but most would like to see some utility attached to the object. For example, only a few people would install a marble fountain in their living room, while most would love an originally-designed coffee table.
While it’s great to own the first tweet ever, there are only a few things you can do with it. And only a few such NFTs can ever be sold.
The industry is likely to move towards the mass market as well as increased utility.
One of the first steps towards this trend is Gucci’s virtual sneakers, which already offer some utility. You can “wear” them in augmented reality.
Gucci’s digital shoe costs around $12. It’s incredibly affordable when compared to other NFTs that made the news.
The trend for increased utility and decreased prices is only starting. There will be more similar projects riding the NFT hype and offering everyone a chance to experience what’s it like to own a blockchain asset.
But what’s more interesting is which types of NFTs will stay after the hype dies down.
We believe that those will be the NFT types that manage to create a stable community that benefits from their utility. For example, gaming communities can attach an in-game value to the NFT character. Or science communities that can encode, share and use information using NFTs within their systems.
Either way, NFTs of the future will combine uniqueness and utility to serve a bigger international audience.
Rarity vs. utility
One of the key aspects of ultra-expensive NFTs is their rarity. Digital art objects are one of a kind.
As a result, there are limited ways to use them. There is almost no utility in having one.
Future may bring digital galleries or augmented reality settings where such NFTs will have a place to shine, but there will always be a trade-off between rarity and compatibility.
NFTs of the future will have to follow the standards of the platform where they will be used. For example, not every picture would be admissible to a public gallery, and not every NFT will be compatible with your virtual living room.
Therefore, the broader community will likely turn its attention to NFT artists creating or collaborating with popular digital platforms.
Trading and utility
One of the beneficial aspects of NFTs is their ability to be securely traded.
It’s of paramount importance in the world of ultra-expensive digital art. The fact ownership and transaction impossible to fake is a major benefit to both owners and buyers.
But what might be the future of such transactions for the mass segment?
Setting up such a sale is no easy fit if you don’t have a platform to handle all the technical aspects. But in the case of a reputable platform, trading NFTs might become a great business opportunity. We might soon see the future Amazon of NFTs hosting a huge amount of individual sellers catering to their communities.
We believe that the future of NFTs on the mass market is in the utility and integration with dapps and other platforms that bring value to communities.
So you might want to keep your eyes opened not for the next trendy art piece but the next emerging platform supported uniquely serving its community.