Visa itself received an adorable new Twitter avatar back in August, and while it didn’t last long, it captures a funky 8-bit image of a woman with an elegant mohawk that still remains in the headlines. It’s not just the relatively exorbitant $ 150,000 price tag. The very fact that the financial giant bought a non-fungible token (NFT), which is an image of the CryptoPunks group, set off fireworks in the media. These were Visa’s best marketing expenses of a year – news articles alone should have paid for the purchase tenfold.
Yes, even the Visa NFT monkeys these days, to use the term NFT collectors, fall heavily into the era of the super-rich, who stream millions in JPEG images of monkeys. But even though the technology’s journey from memes to wealth has brought it into the realm of digital art, I don’t think it will be massively used in the marketplace.
Everyone now knows that NFTs basically provide distinction and rarity, the benefit associated with traditional art, in all forms and forms of digital art that can be reproduced indefinitely using good old copy-paste. A link to a specific image, audio or video is sent to the blockchain as part of the transaction, and here we are – although the file can still be copied, only one wallet owns its token. That’s where it gets luxurious: Wearing an NFT as your Twitter avatar is like wearing a Rolex watch with your name on it. It is a status symbol that should be appreciated by those in the know.
However, high art and luxury are by definition the opposite of the mass market, where high price and exclusivity are the main arguments. A money killer can buy a link for millions, but that’s because he can also burn his money for fun, and they want to show the world their fortune. Good luck charging Joe the usual $ 150,000 for a photo link. The focus on NFT as an art by definition limits promising technologies to a relatively small, albeit luxurious and quirky niche.
The good news is that big digital art sales using NFTs are becoming headlines and helping to take NFTs into the mainstream. However, this will not be the main use of NFT in the future, it will be a new and expensive game for the wealthy and some private crypto personalities and communities.
First, NFTs are already widely used in the mass market – they do a lot at home, and CryptoKitties is collecting quite a few headlines a day. From Axie Infinity to all the latest games, NFTs are driving a multitude of digital economies, bringing more than just exclusivity.
Yes, it’s nice that your NFT sword is unique and has your name on the symbol, but what’s even more beautiful is that it can decapitate a dragon in one blow, unlike any other non-unique weapon. And headless reptiles are what people are willing to pay for. Fortnite, a free-to-play game released by the publisher, generated $ 5.1 billion in 2020 in cosmetics for the game, and players are already paying for weapons, castles and spaceships that are not unique to dozens of other games. NFT is just the next step in this direction. And believe it or not, in some developing countries, NFT games are already a solid source of income.
What seems very promising is the idea of using NFTs in the business world as part of traditional business operations. Areas in which NFTs are likely to be very successful if they don’t become the new standard way of doing business are not as exciting as luxury. However, they will greatly benefit from the main benefit that NFTs bring: the ability to authenticate the associated digital asset. It can be as simple as hashing a financial document stored as an NFT on a private or public blockchain to check if it has been tampered with later.
Software licensing and validation appears to be one area where NFTs, given sufficient time, have shown themselves to benefit from potential compatibility. Both companies and individuals can purchase licensed software components on the same platform and rent them out for as long as possible. This will reduce costs and keep IT managers safe as they have an additional layer of security and know that all digital assets can be authenticated securely and quickly.
Related Topics: Non-Rolling Tokens: A New Paradigm for Intangibles?
For those of you who are older, I remember you bought copies of Windows or Adobe CS3 and have a sticker on the back of the box with your serial number. Check the box and that’s it. It has been replaced by a SaaS login that stores your serial number, or platforms like Steam and the Apple App Store that have preserved your digital origins – unless, of course, Apple decides they don’t have rights to the Store. ” Goonies “”.