What Is Happening Around Non-Fungible Tokens?- An Overview

The change of time and technological advancement is making people experience everything digital today. With technologies like Metaverse, it is possible to experience everything we see in science fiction movies in real. The introduction of blockchain is bringing a lot of changes to the traditional financial system we have followed for decades. With Non-Fungible tokens, there is a revolution coming on its way to make everything work on blockchain, from a simple game to official documentation. NFT marketplace platforms are rising, and they are recording the most in the number of daily active unique wallets in recent times. 

If you know what is NFT actually is and looking for updates that surround this new tech, you can skip the proceeding paragraph. Here is a compilation of everything new, and trending on NFTs.

Get to know NFTs

You know how much the paintings of Leonardo da Vinci are worth. Art always has its own worth, and well-known artists are appreciated by society. Ever since the world began to get digital, art has been less appreciated. Ipads and tablets replaced canvas, and the Stylus pen replaced the brushes. Digital artists emerged, and they were less appreciated. They struggled to monetize their assets and get a royalty for them when resold.

The introduction of Non-Fungible Tokens on the blockchain gave people a chance to have tradeable ownership of digital assets. This gave an opportunity for digital artist to monetize their creations on the blockchain. People gave overwhelming attention to the concept of owning digital assets, which resulted in the NFT boom in 2021. Asking if this boom happened purely because of the concept of blockchain and NFT, the answer is No. A lot of factors contributed to this massive boom of NFTs. It includes the influence of celebrities on buying certain NFTs, the launch of fandom-based NFTs, and many more. 

Eventually, various luxury fashion brands and other popular brands started to mark their presence in this market.

The craze of NFTs on Brands

If you ask the list of popular brands that made it big time in the NFT market, the list will go on and on. The NFT market is flooded by brands every day, and brands are taking up NFTs full-time. Moving in parallel with new technologies helps these brands to engage with their customers. Remember when social media emerged, every brand opened its own account as a marketing channel and as a mode to reach customers? Similarly, brands use web3, metaverse, and NFTs to reach their customers. 

Fashion brands, from Gucci to Nike, took NFTs a bit seriously. In a recent report, Nike has acquired revenue of $185.3 million so far, topping the list of brands that are taking up NFTs. It is followed by Dolce and Gabbana, Tiffany &co, Gucci, and Adidas in the Top 5.

The list also included Mclaren automotive and Pepsi among the top 10 brands that earned a hefty revenue out of NFTs. Skincare brands like Estee Lauder and cosmetic brands like Loreal are also getting into this lucrative market.

The recent addition to this ever-going list will be Starbucks and KFC. With BuckETH NFT, KFC is planning to give 1 year’s worth of Bucket chicken to the NFT owner. On the other hand, Starbucks is entering the web3 realm with its Coffee-themed NFTs will come as a token for getting exclusive offers and perks.

As mentioned earlier, the list goes on and on, and it is never ending, with brands coming with NFTs daily. It is also proven that these brands played a role in keeping the demand for NFTs high. 

The gaming trend

The concept of NFTs is not just for digital art and images. Any digital file can be made as an NFT. The gaming industry took this a step further by applying this concept with the in-game digital assets.

In traditional video games we play, gamers always look for in-game items that will help in improving the gaming experience. The New gun you purchase or the new map to get different gameplay. Everything you buy as a digital item on the game can be an NFT. This is to give tradeable ownership, which can make gamers sell them any time they want and even rent them out for a while.

This way, NFTs paved the way for a new revolution in the gaming industry with Play to earn NFT games. These games adopted not only NFTs but also the web3 concept. It rewarded the users for the time, money, and efforts they spent on these NFT gaming platforms. That is, whenever you complete a task or win a match or even score points, you will be rewarded with equivalent cryptocurrency or even stable currencies like USDT. 

Gamers and NFT users are concentrating on these games as they give an opportunity to have fun and earn at the same time. This made many popular game-developing companies enter the world of Non-Fungible Tokens.

NFT 2.0

You should have got an idea of how NFTs are influencing brands and games. NFTs made their way into a number of industries with their unique characteristics. Even governments are coming forward and taking up NFTs. In recent times, NFTs were taken up for registering land records, birth certificates, and other documentation.

With this, NFTs are getting an update by bringing new features over the already existing characteristics. Dynamic NFTs or Living NFT concept is something that has been in the spotlight in recent times. That is, Meta data of the NFTs can change with varying times and conditions. This can include the time, interactions with other NFTs, or, more typically, external data, like real-time sports results. 

The NFT2.0 concept gives additional features like Nesting of NFTs, interlinking, Co-owning, rental model, and more. Bringing Fungibility to NFTs in order to co-own them is one of the highlighted concepts that are yet to hit the market.

Bottom line

Non-Fungible Tokens are yet to discover their fullest potential. Even during the crypto market crash, NFTs still had a constant demand, as stated by top NFT marketplace platforms. Though the market crash brought down their worth, their demand stayed upright, which clearly shows that NFTs as a permanent asset on the blockchain is an unshakeable tech. And it is ready to explore and create a new digital world- the metaverse!