NFT’s current value and future direction

The main current value of NFTs is to empower artists, creators and collectors to exercise their rights to distribute, resell and collect.

NFT's current value and future direction

NFT artwork “First Dinner” successfully auctioned for 103.4 ETH

Are NFTs digital assets? yes. Because an asset is defined as “something considered to have value,” an NFT is a digital asset if people are willing to buy it. Just as an art collector decides to buy a Qi Baishi painting—or $12w for a banana that self-taught artist Maurizio Cattelan taped to the wall—the willingness to buy something doesn’t need to be based on any objective reality.

NFT's current value and future direction

When an art collector buys a rotten banana taped to the wall, they know it’s a banana taped to the wall. So, is our purchase of NFT also equivalent to buying pictures that are “sticked” to the chain by the blockchain?

The value of NFTs

What is important to understand about NFTs is how they become valuable. Different from Tokens such as BTC or ETH, the value of NFT is usually not so rational, but rather emotional or with equity mapping; such as: digital picture files, proof of equity, Pass, and even a community admission ticket, etc. Therefore, NFT owners must resolve the delicate relationship between ownership records on the blockchain and what they should own (not on the blockchain).

NFT's current value and future direction

Consider this: would you buy yourself an NFT, a blockchain record that contains only a unique string of data, with no digital or real-world assets involved? Then you must not be interested. Would we still think so if we told you that it was unique, that Jay Chou once owned it, or that many others were scrambling to buy it at a premium?

NFT's current value and future direction

But where an NFT stands for a digital work of art, the NFT usually contains a link to a public media file on the Internet—a file that can be accessed and copied by anyone. Then many people will question: what is the point of buying NFT?

Forgery is hard, at least for physical art. But in the world of data, it is very easy to make a replica; so the value of NFTs is realized – you are the only owner of the real thing. Only you have the right to determine its attribution.

Sound vague? But we think in turn, even if you own the “Mona Lisa”, you can’t prevent others from hanging a replica of the Mona Lisa in their home; the same is true for NFTs, although everyone can access and copy, but Only you hold its only authentic item.

NFT's current value and future direction

However, the current laws related to NFTs are not perfect. After the terms of copyright and secondary creation are perfected, the combination of NFTs and artworks will have greater value.

Although digital artwork is the first and most important application of NFT at present, the fact is that the encryption industry has only scratched the surface of the technical capabilities of NFT.

NFT's current value and future direction

In the next stage, where are NFTs most likely to make a difference?

Medical records and identification

Medical records and identification are vital information that is difficult to replace even in the digital age. This is one area where NFT technology can provide a wide range of practical use cases, from which most people in society can benefit.

Rather than having large medical institutions record, manage, and track an individual’s medical records, a unique NFT assigned to each individual can store all medical information while maintaining confidentiality and privacy.

NFT's current value and future direction

It would also allow people to control what information is shared with health providers when seeking treatment, while keeping less relevant personal data private.

It is possible that one day, the process will begin at birth, with a healthcare provider or government agency issuing an NFT birth certificate to the newborn. This can also be the start of building a digital identity that can be tracked in the form of NFTs.

NFT's current value and future direction

With digital forms of identification, individuals will be able to limit what information is shared when identifying information is needed, such as an app that can verify that a person is over 18 without revealing other information typically contained in IDs, such as home addresses, etc. .

Real estate and asset tokenization

The tokenization of real estate and other real-world assets may be one of the most widespread and paradigm-shifting applications of NFT technology, as it has impacted numerous industries.

NFT's current value and future direction

Beyond being a simple use case for tracking and verifying project ownership, tokenization of assets will eventually allow them to be used in many different applications in decentralized finance (DeFi).

Eventually, individuals will be able to use NFTs representing their home deeds as collateral for DeFi protocols, which will allow them to borrow funds to use elsewhere in a similar way to refinancing.

Tokenization of larger items, such as hotels or luxury yachts, also allows for decentralized ownership, giving those who would normally not be able to afford such items access to it.

NFT's current value and future direction

There is no limit to what can be tagged and tracked on the blockchain, and it is very likely that all forms of assets, including stocks, bonds, art, rare collectibles and luxury goods, will one day be represented as NFTs.

Intellectual Property and Patents

Ideal for tracking intellectual property (IP) and patents, NFTs provide a way to prove ownership of any content, taking the current trademark and copyright system to the next level.

The data retention capabilities of blockchain technology allow the entire history of an IP to be tracked and time-stamped, providing a way to provide non-repudiation of ownership. Likewise, data for patents or inventions can be recorded on the blockchain in the form of NFTs, providing a way to protect and prove ownership.

NFT's current value and future direction

Ticketing

One use case for NFTs that has been explored and implemented in entertainment venues around the world is tickets. The ability to create an unlimited number of unique NFTs allows venues such as concerts and stadiums to issue tickets as NFTs for easy verification or transfer.

The proliferation of smartphones in society has made digital ticketing possible, and the integration of NFT technology will help make the process more efficient and easier to track.

NFT's current value and future direction

ChinaJoy Online Exhibition and Tickets

Exclusive Membership

The ultimate application of NFT technology is as a general utility token that performs specific functions, such as verifying membership in an exclusive club or providing access to specific services, what we commonly call a Pass.

Many NFT projects are already using this feature, and they have dedicated websites or Discord groups that can only access it after verifying ownership of the NFTs in that particular collection.

Epilogue

The emergence of blockchain allows us to see more possibilities for value generation and transmission. We have witnessed the process of digital assetization from scratch, and we are also exploring the value prospect of asset digitalization from zero to infinite. Behind it is the evolution of ideas that have been fostered by technological progress, which frees us from our dependence on the current stable and inefficient system. Starting from the ideological positioning of “NFT+”, we are looking up to a wider starry sky.

NFT's current value and future direction

This transformation of assets and value will not stop at the evolution of information interconnection to value interconnection, but, with the support of blockchain, promotes the overall chaining of human beings from a centralized information system to a decentralized value system, and a new on-chain governance system.

NFT's current value and future direction

Perhaps decades after the birth of the Internet, we will be able to break through the barriers of on-chain and off-chain, and realize the on-chain of a wide range of assets and information. On-chain value will account for the majority of human life. The world will embrace blockchain, and humanity will enter a new way of life.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nfts-current-value-and-future-direction/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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