In the third quarter of 2021, NFTs are predicted to generate over $10 billion, with the first full-fledged NFTs announced at DEVCON in October 2015.
In addition to representing precious metals and in-game items, NFTs are very practical. The digital assets created by these clients are unique collectible items traded on exchanges decentralized like cryptocurrencies.
Digital collectibles are a phenomenon that has captured the public imagination in a manner previous digital assets have failed. Whether itâ€™s Beeple selling an NFT for $69 million or entire sub-sections of NFT fanatics obsessing over their Pudgy Penguin or CryptoPunks NFTs, weâ€™ve seen a metamorphosis in the valuation, meaning and personal realization of digital collectible works of art.
The early iterations of NFTs paved the way for a revolution, and now NFT 3.0, brought forth by major â€˜play-to-earnâ€™ games, introduces synchronicity to NFT 1.0 and NFT 2.0 while integrating the auspicious aspects of DeFi into a unified, innovative and holistic game.
NFT 1.0igital collectibles
What if you could own a piece of history?
Established in 1976, the Van Gogh Museum in Amsterdam holds the rarest collection of Van Gogh artworks, with over 1,300 pieces, including iconic paintings â€˜Self-Portrait,â€™ â€˜Sunflowersâ€™ and â€˜The Sower.â€™
These paintings and sculptures have been on display for decades, turning into cultural emblems, making them exceedingly expensive or impossible for individuals to possess.
But with the invention of new technologies, such cultural artifacts can be digitized. NFTs are a way for users to create digital collectibles of art and store them in their wallets or trade them on the blockchain.
NFT 1.0, however, has remained mainly exclusive to the arts and game industry. The advent of blockchain requires a progression of not just wide-reaching commercial applications but a truly universal technologyNFT 2.0.
NFT 2.0torytelling vehicles
While NFT 1.0 represents the product, NFT 2.0 creates the means to develop other projects.Â 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 authenticitynot 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. Theyâ€™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.
Weâ€™ve experienced NFTs evolving from their humble origins as digitized art to storytelling vehicles. But weâ€™re yet to see NFTs fully incorporate the wider aspects of the crypto ecosystemeatures 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 failureand 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 toysthe market for collectibles tops $370 billion and is growing.
As an open economy, weâ€™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. Weâ€™ve seen Facebook rebrand to Meta and fully accept the capabilities of the metaverseo, why canâ€™t NFT 3.0 provide such an impact? Why canâ€™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?
Felix Mohr is the CTO and co-founder of Crypto Fight Club. Aside from spearheading all blockchain and game developments for Crypto Fight Club, Felix (aka Maker of Gloves) has been in crypto since 2016 as a certified fintech professional from the University of Hong Kong. His focus now is to bridge adoption to the play-to-earn space on GameFi through building NFT games and decentralized blockchain product lines.
Featured Image: Shutterstock/Vadim Sadovski