NFTs Revolutionize Digital Commerce and Art Industry

NFTs Revolutionize Digital Commerce and Art Industry

There has never been more public interest around the potential applications of blockchain technology than there is right now. NFTs revolutionize digital commerce, and here we take a quick look at two major trends that will come to define the staying power and utility of blockchain in the coming decade.

Micro Crypto Currencies

While much is being made of the prominence and value of large crypto currencies such as Ethereum and Bitcoin, the decentralized nature of blockchain also supports the proliferation of many smaller and context-specific crypto currencies. One area that we could expect to see this trend take hold is in the online gaming market. The world’s gaming market is valued at approximately $227 billion, with established online casino platforms, such as PokerStarsCasino, now making up 25% of the market and driving projected growth of 11% annually up to 2027.

Blockchain technology has the potential to significantly impact this market. As online transactions increase, it could lead to the creation of casino-specific cryptocurrencies. These could act as digital casino chips.

Mainstream video game media is similarly positioned to capitalize on the technology as it matures, with micro-transactions conducted in games such as Call of Duty could use game-specific cryptocurrencies for microtransactions. Players could redeem these tokens for in-game items, perks, unlockables, and customization features. Additionally, online game stores tied to platforms like the Playstation Network may implement their own currencies. This would streamline transactions across different ecosystems and regions.

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Non-Fungible Tokens

2021 will be remembered as the year NFTs, or Non-Fungible Tokens, went mainstream. As the internet and digital media evolved, one issue persisted: how do you market a product’s unique value when it can be easily pirated and copied? Early attempts in the late 90s to stop decentralized sharing platforms from spreading digital property failed.

In recent years, this approach shifted to a licensing model, as seen with platforms like Spotify and Netflix. Traditional media producers have adapted, collaborating with the digital world to maintain some control over their products. However, this subscription method doesn’t address the problem artists and producers face: how to ensure significant returns on unique products in an environment that undermines market scarcity.

NFTs, stored on a blockchain, solve this. They allow value to be created through rarity in digital products. Over time, NFTs will likely become a standard in the media landscape. We already see them in various sectors.

NFTs Revolutionize Digital Art and Commerce

The NBA has famously generated over $230 million in sales through its Top Shot marketplace of classic basketball video clips. Digital artist Beeple became one of the most valuable artists in the world overnight when he sold his digital art oeuvre to a customer for $69 million, and musicians are exploring the ways in which they can use this new product category to reclaim value over their work.

The Kings of Leon were the first band to release an album as an NFT. Their latest LP, 2021’s When You See Yourself, will offer buyers of the NFT special perks including limited edition vinyls and front row seats at future Kings of Leon concerts. Non-Fungible Tokens are also opening up the possibility to market and value significant pieces of internet history. Jack Dorsey, CEO of Twitter, recently sold his first tweet for $2.9 million. It was the first tweet ever made on the platform. This sale highlights the growing importance of NFTs. NFTs are here to stay, and we can expect new ways to market products. As digital scarcity value continues to grow, we’ll see even more innovations in the coming years.

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