Since the first full-fledged NFT was unveiled at the DEVCON conference in October 2015, NFTs have experienced exponential growth – generating over $10 billion in revenue by the third quarter of 2021.
NFTs are practical because they can represent anything from precious metals to in-game items. Like cryptocurrencies, they are collectible items that can be traded on exchanges in a decentralized manner.
As a phenomenon, digital collectibles have captured the public’s imagination in a way that previous digital assets couldn’t. Whether it was Beeple selling an NFT for $69 million or whole sub-sections of NFT fanatics obsessing over their Pudgy Penguin or CryptoPunks NFTs, we have witnessed a metamorphosis in digital collectibles’ valuation, meaning, and personal realization.
The early iterations of NFTs paved the way for an industry revolution, and now NFT 3.0, introduced by major ‘play-to-earn’ games, integrates the auspicious aspects of DeFi into a unified, innovative, and holistic game.
NFT 1.0 – Digital Collectibles of Art and Game
Imagine if you could own a piece of history!
The museum in Amsterdam has one of the most extensive collections of Van Gogh artworks, with over 1,300 pieces, including his iconic paintings ‘Self-Portrait’, ‘Sunflowers’ and ‘The Sower.’
Over the years, these paintings and sculptures have become cultural emblems, making them extremely expensive or impossible for individuals to acquire.
Nevertheless, new technologies have made possible the digitization of such cultural artifacts. NFTs enable users to create digital collectibles of art and store them in their wallets or trade them on the blockchain.
However, NFT 1.0 has remained mostly exclusive to the arts and games industries. In order for blockchain to achieve its full potential, it needs to evolve beyond broad commercial applications and become a truly universal technology – NFT 2.0.
NFT 2.0 – Storytelling Vehicles on Road to Decentralization
While NFT 1.0 represents the product, NFT 2.0 creates the means to develop other projects. For example, if NFT 1.0 signifies a video game, NFT 2.0 signifies the console.
NFT 2.0 has been at the forefront of this transition to decentralization, providing investors with opportunities to own their digital assets without third-party risk. NFT 1.0 was the foundation for simple items such as drawings and cards. However, NFT 2.0 enabled the creation of unique and multiple consumables, each with distinct flair and personality.
The evolution of NFTs as Gaming, DeFi and APY vehicles
The new NFT 3.0 paradigm represents an innovative way to give users greater control over their assets because they can create items with intrinsic value. No other industry represents this certitude like the gaming industry.
The number of people playing video games has increased rapidly in recent years, and according to market research firm Newzoo, the video games industry will generate upwards of $175 billion by 2021. Making it one of the fastest-growing industries in the world.
Twitter is developing a new verification system for profile pictures. Users simply connect their wallets and provide proof of NFT ownership, thereby enabling authenticity – not copied from the original source. Such measures highlight how NFTs are becoming social proof in this digital world we live in today.
NFTs are increasing in popularity among gamers because they provide users real-life earning opportunities and bragging rights to accompany their achievements. They’re a method to unite the crypto space, through unique characteristics, while containing fewer barriers to entry than DeFi. Liquidity mining and yield farming are complex topics for users to understand. However, staking tokens inside an NFT requires far simpler knowledge.
We’ve experienced NFTs evolving from their humble origins as digitized art to storytelling vehicles. But we’re yet to see NFTs fully incorporate the wider aspects of the crypto ecosystem – features that introduce a new level of earning mechanism within the cryptoverse.
The scope for NFT 3.0 remains wholly untapped and underdeveloped. Supply and demand are the leading factors ultimately responsible for success and failure – and with NFT euphoria yet to peak, the demand for a new breed of NFTs entailing the absolute best of our industry will bring forth a generational boom in digital asset ownership.
Introducing NFT 3.0 via the optimal synchronization of digital assets
Counting trading cards, cars, games and toys – the market for collectibles tops $370 billion and is growing.
As an open economy, we’re ready to take full advantage of this trend by moving into digital video, card games and physical games.
The objective is to provide an infrastructure for the efficient delivery of value, thus creating an interconnected, trustless and accountable network.
Digital assets in the modern age will play a crucial role in our lives. We’ve seen Facebook rebrand to Meta and fully accept the capabilities of the metaverse – so, why can’t NFT 3.0 provide such an impact? Why can’t the next natural progression of gamified and yield-earning NFTs burn their marker into the minds of digital enthusiasts in a manner befitting its transformative potential?
Originally published here
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
