2021 will go down in history as the first year of NFTs. This year, it was also a year to increase public awareness of Web3, as visionaries, architects, developers, and venture capitalists began to envision the next generation of public digital infrastructure. DAOs (Decentralized Autonomous Organizations), dApps (Decentralized Applications) paved the way for the next generation of Web3 Metaverse. Facebook even renamed itself Meta.
When any new technological era begins its evolutionary life cycle, dramatic and controversial expectations are often revealed ahead of time. The beginning of 2022 has already shown how frenetic and dynamic Web3 will be. Bitcoin, Ethereum and altcoins all gave up big gains for 2021 in January due to inflation concerns and greater crypto regulatory headwinds, while NFT exchange OpenSea announced a $13 billion valuation after a new funding round.
2022 has lived up to expectations. New trends are shaping Web3’s business, and DAOs are expected to be the cornerstone of next-generation digital infrastructure and future blockchain technology.
The new kid in town?
For more than a decade, the term “blockchain” has been synonymous with infrastructure bitcoin and the cryptocurrency “bitcoin”, the most popular cryptocurrency by many measures. Satoshi’s brand talent should be recognized along with his or her mathematical and technical talents. “Crypto” leads Google’s blockchain searches. In early 2021, things started to change as NFTs proliferated, leading to NFTs overtaking cryptocurrency as the most frequently searched term later that year. This type of crossover is an important trend to watch, and it could become a leading indicator of change.
Bitcoin has also been under pressure from Ethereum as the developer’s choice for building the cornerstone of Web3.Ethereum enjoys a first-mover advantage in smart contracts and benefits from the “walled garden” approach that many developers have taken when building platforms in the Web 2.0 era.
The DeFi and DAO models gain the most from platforms that offer compatibility and interoperability with Ethereum. With more than half of the top 20 cryptocurrencies linked to Ethereum through EVM compatibility or ERC-20 tokens, Layer 2 games like Polygon are very popular in 2021.
NFTs have begun to change the demographics of cryptocurrency consumers, with more women, especially millennials, seeing cryptocurrencies as a revival and profit center for art and collectibles. According to Statisa, women and men are equally represented, with women accounting for almost half of NFT ownership across all age groups. Compared to cryptocurrencies, 90% of Bitcoin users are male, a major demographic shift that product marketers won’t ignore.
The launch of NFTs marks a major step in the right direction for cryptocurrencies and digital assets towards social diversity.Women like Hackatao and Grimes are leading the way. FEWOCiOUS is a transgender teenager whose art you can’t get your hands on and is known for breaking Christie’s online auction system. Driven by young and multicultural communities, the arts, sports, and entertainment industries see the advantages and opportunities for everyone to get started in this space, and NFTs are opening more doors.
NFTs are removing barriers
From grocery stores to cable TV, traditional distribution channels better understand them as catalysts connecting the masses with NFTs. Mobile telcos, for example, are leading the way by distributing NFTs directly from their platform. Telcos around the world have the advantage of keeping their platforms in the hands of the majority of people on the planet, and businesses see this advantage in the next generation of value exchange.
GFTX, a nascent West Coast-based NFT exchange, has launched a “load to phone number” model in Thailand in partnership with leading telco True Mobile, which serves more than 60 million users. With a simple login using a consumer’s phone number, new subscribers can unlock NFTs and begin their journey into the digital asset and Metaverse community. Most notably, subscribers don’t need to understand the intricacies of blockchain or cryptocurrencies to get started. Loading into digital is frictionless and easy to use, with zero barriers to entry.
Jonas Hudson, co-founder of GFTX, said: “Providing NFTs, or the ability to enable NFT transactions, should not be rocket science. Now, users need to go through more than ten steps to buy NFTs from numerous marketplaces. Compared to Web3 it More like Web2.0. In general, mainstream consumers don’t like to reveal personal information, even for services they have and need. To make every consumer’s first trip simple, fast and exciting , input is essential. At GFTX, we have made the end-to-end journey of making and trading NFTs as simple as buying a mobile phone time, a transaction most consumers are familiar with. Ultimately, GFTX is for the masses mobile NFT market.”
Telcos also have an advantage over many other distribution channels, which is easier access to users. By offering coupons, discounts and reward NFTs that can be offered to consumers, telcos have forged relationships with other consumer sectors, offering new and existing customers new products and benefits on the platform.
“We haven’t imagined the true potential of NFTs. Today it’s a work of art, tomorrow it’s a smarter currency that manages itself and settles transactions between buyers and sellers without the need for expensive and opaque intermediaries The main product of all of this – visible and personal to consumers or business users is the mobile wallet – a secure and dynamic exchange platform that accepts, creates, stores and transacts value and enables marketers to Connecting directly to mainstream consumers. This phenomenon applies to almost every industry, including the fast-growing global mobile coupon and rewards space. Before this Targeted, relevant communications. We make that possible,” said GFTX co-founder Mitch Chait.
Intellectual Property in Web3
NFTs and DAOs are subverting the traditional IP model. In 2017, Crypto Kitties created a revolutionary IP model that gave NFT rights holders the ability to use IP to generate revenue. This is basically a license agreement included in the code.
Of course, this begs the question, “Who owns the underlying data?”
CryptoKitties was one of the first NFT licenses to allow the transfer and use of art associated with any “kittie” creations owned by the user. Most interestingly, it includes commercial rights of up to $100,000 per year. This provided an opportunity for the Bored Ape Yacht Club (BAYC) to create a kitties-like model.
“It’s a diametrically opposed model to Disney, where one centralized company owns all IP verticals and licenses and distributes it to other companies or individuals focused on their core business. For example, BAYC doesn’t brew beer, so they let Owners of “Ape” use brands to build products. For young artists or companies that don’t have the means to vertically accelerate their business, this provides new product expansion and new revenue. The next major brand may change, Hudson added It has to be decentralized and owned by the “public”.
In addition to art or entertainment, there is also the question of ownership, that of medical records, legal documents, and other intellectual property rights that are transferred from wallet to wallet. NFTs or DAOs can govern the rulesets, but policy and lawmakers are likely to debate these issues for some time to come as identities and (sensitive) personal data move from wallet to wallet.
Are NFTs securities?
In 2022, all roads will lead to the SEC. The ICO frenzy of 2017 caused a lot of heartache to unsuspecting investors as they poured their money into tokens that promised 100x and higher returns. The SEC was quick to clamp down on “Wild West” unsecured token offerings. In 2022, the same looks set to happen again, with some DeFi products and NFTs looking more like securities than collectibles.
In London, the Tube (public subway/underground) is full of advertisements promoting NFTs and cryptocurrencies, and the UK advertising watchdog has started cracking down on it, issuing a takedown notice to Papa Johns for offering BTC on order .
The difference in 2022 is the migration of open NFT platforms to SEC-regulated NFT platforms.
“The past and the future meet in the present. The index capabilities and adaptability of NFTs, and their ability to scale globally through seamless interfaces, will have to be reconciled with regulatory regimes in the short term. Update or create new securities laws or new of regulators, it will take some time to combine “anti-money laundering”, KYC and investor protection with “code is law” and large-scale crowd intelligence through DeFi. The power of NFTs and their uses will be assessed as those clearly defined Rewards or collectibles rather than securities and NFTs whose ownership is piecemeal, offering appreciation and/or rates of return.
The latter transforms NFTs into fungible and potentially creating an investment contract that results in a security or other financial instrument. As regulators, policymakers and lawmakers seek to understand and in some cases control DeFi and NFTs as we continue our journey into the future, we can expect increased global regulatory scrutiny and enforcement around NFTs.
The new regulations paves the way for partial legal ownership of NFTs and physically-linked NFTs, allowing retail investors to own partial interests in Picasso works or early stakes in DAOs. This change in asset ownership removes the “insider” advantage and provides a level playing field for investors. Coupled with liquidity and social media, everyone can legally take advantage of these new investment vehicles,” said Fintech.tv founder Vince Molinari.
In short, the reality is that the “Metaverse” craze, especially in a young, decentralized economy, will make huge strides in 2022. Now the NFT space is struggling. Small-scale marketplaces have little business volume, even with 20 million monthly users, and less-visited marketplaces can bring in $200,000 a month in revenue. A lot of their business volume is based on the release of one or two NFTs, which drives these numbers.
OpenSea has lost half of its business since August, and most dishwashers are looking for other ways, a trend that is likely to continue. In short, with no new clients, many early-stage NFTs have already reached their peak in the crypto community.
Everyone’s insisting that the next big thing is the Metaverse, and the winning players are those who insist on walled gardens. Decentralized Metaverse has few users because its polygon count is not enough for core players/players/mass.
When you ask players to go into the Metaverse, if the tension is very high, they give up very quickly. The Metaverse needs to be mobile in the first place, and technology is premature. You can set up characters, get dressed, go to clubs, dance, but if your Metaverse doesn’t have a mobile-friendly feature to hit the mainstream, you probably won’t get very far.
Game companies are still reluctant to open up their walled gardens to allow disparate assets to enter on a large scale in the medium to long term, and that may change, and you see ads with models staring at a painting in a museum that comes to life, , even if it’s not ready, users still have to put on a VR headset and tethered to a $4,500 computer to make it really work.
Low poly count friendly games like Fortnite and Roblox will continue to lead the field, not Meta. The market also needs to enable assets on the blockchain to be traded at the same speed as today’s trading track in order to compete.
As we enter 2022 and the construction of the Metaverse begins, it is clear that NFTs have dramatically changed the landscape of participation in the crypto ecosystem in just over a year. This space is not just male-dominated Bitcoin tribes, it has expanded to include a more diverse and balanced social user base who can easily access the ecosystem for valuable social and commercial use.
Increasingly, traditional product companies and distribution channels see opportunities to better engage customers through artwork, collectibles, gifts, coupons, rewards, and financial products, broadening the social foundation of cryptocurrencies. Many new NFT products and investments are on the horizon, and DAO-backed networks have the ability to use these products at hyperscale.
The move to a single, simple NFT wallet tied to your mobile number is to further reduce friction for consumers, enabling them to access cryptocurrency products and services with a high level of utility without the need for technical knowledge of how the cryptocurrency engine works – We’re getting to the point where you just press ON BUTTON and you’re done.
All of these factors are a healthy early indicator that NFTs are the bridgehead for building the Metaverse and will help to better enable mass adoption of crypto and digital asset products in the social and commercial spheres in the emerging Web3 world, better to deliver on the commitment to inclusion.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/forbes-magazine-nft-dao-mobileweb3-metaverse-officially-set-sail-in-2022/
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