Non-Fungible Tokens (NFTs) are one of the most exciting trends in the blockchain space. They got so hot in 2021 that Spotify paid tribute to their rise in the inaugural Spotify wrap. Will NFTs continue their strong performance in 2022?
Their popularity is a testament to the power of blockchain technology. This technology disrupts finance, data storage, asset management, and even the arts, as is manifest from notable NFT auctions. Online gaming on BC GAME is also gaining new ways of creating and trading in-game items. This utility creates more excitement for crypto gambling enthusiasts who can monetize their gaming experience.
Brands such as Adidas are latching onto the bandwagon. The global clothing and shoe giant recently announced it would memorialize a collection of Adidas Originals as NFTs. Such is the significance of this wave. Facebook’s conceptualization of the Metaverse has added dynamism and excitement to this budding sector. The latter part of 2021 was historic for NFT evolution. First, let’s understand their importance before looking at how they will fare this year.
NFTs in 2022: Changing The Concept of Ownership
Physical ownership of items has been the staple for millennia. Even though money underwent digitization in the past few decades, assets have remained mainly physical. The most public form of NFTs are ones that encrypt artistic works.
Designers and artists have innovative ways to assert ownership of their work. The reason NFTs are valuable is that they are traceable and impossible to counterfeit. Each NFT is unique from the next, and a purchaser can be sure that the NFT they own is the only one in existence.
They are still controversial in some circles. The fact that anyone can create an NFT does not sit well with some people. Indeed, there is plenty of junk and redundant NFTs. Nonetheless, the meaningful ones are getting significant traction. Nefarious activity has always been a part of crypto. However, it did not stop the march of Bitcoin and early cryptocurrencies, and the same should be the case for NFTs and newer innovations.
NFT sales are now a part of many traditional design fairs and art auctions. They entered the mainstream in 2021 and continue to garner more influence in the industry. Various artists and music legends have sold pieces for tens of millions. Some would not otherwise generate these amounts if it were not for the notoriety of NFTs.
This trend is a new frontier in the concept of ownership. For creators, it is an opportunity to gain significant control over their interests. Musicians, for example, have had to depend on record labels to conduct marketing and distribution. With popularity, they can bypass these industry gatekeepers and access their fans or investors directly. Designers can sell their creations directly to customers on platforms like OpenSea.
NFTs offer both the buyer and the creator security of the asset. Both can assert their ownership to the entire world because any fraudulent NFT cannot have the same code as the original.
Forecast for NFTs in 2022
The emergence of NFTs in the era of fast internet and near-universal access is a perfect storm. NFTs can represent anything digital and have a high ceiling as the world becomes more digitized.
Their usage will undoubtedly continue to grow. In 2021, NFT sales went over the $2 billion mark. Accordingly, this figure is likely to more than double in 2022. Think of all the global fashion brands that could follow Adidas in this sector. There are tech companies that will not want to let Facebook run the show in monetizing the Metaverse.
Not all these competitors will get on board this year. Nonetheless, if a few enter an appearance, it will be massive. The beauty of this tool is that everyone has the opportunity to capitalize and create, provided they have value in their brand or creation.
Naturally, there is some risk involved. The NFT sector will continue to face the risks common to all digital assets. Newer investors may fall victim to many scams riding on the popularity of NFTs. Nonetheless, the broader determination of sophisticated creators and investors should carry the day. The future looks bright for NFTs in 2022.
The Covid Pandemic has had an unfortunate human toll. Regardless, the positive side is that it has accelerated digitization in all fields. This surge in digital spaces, digital ownership, and more digital products is likely to continue. NFTs represent the nexus of these trends, which explains their popularity, especially with young people.
For artists who struggled without performing at the height of the Pandemic, this tool represents a life.
It is a bold step to put your work on the blockchain, and many are reaping the dividends.
NFTs now have an elevated position in the blockchain commerce space. They are giving agency to creative developers and artists. In the gaming sector, they are a vital tool for democratization of gaming items and even storing vital documents as BC GAME did with its Curacao license.
OpenSea is now just as important as mega crypto exchanges. This world of blockchain design is getting thousands of new enthusiasts every day. This platform has allowed creators to launch their collections with efficient ways of compensation. Buyers are sure of the authenticity of their favorite collections, and artists can get more than just nominal royalties for their work.
Who knows, governments could even begin thinking of regulating this nascent sector. In the blockchain industry, there can be periods of stratospheric progression. 2022 could yet be one such year for crypto.
Accordingly, what you see in NFTs could be the tip of the iceberg. It is not without a few rough edges, but the industry as a whole is a vital showcase of blockchain innovation and disruption.