Part 1 of 3: NFT Future Series presented by NFT Artist & Crypto Futurist Arian Rahimi
- Part 1: The Future Of Crypto: NFTs, Cryptocurrencies and the Future Of Ownership – the future of ownership
- Part 2: The future of ownership
- Part 3: NFTs and the future of ownership
This blog post will focus on NFTs and the future of ownership by providing a small description of how NFTs could have a significant impact on crypto adoption and crypto markets. This blog post will be followed by a full description of how the impact to the future of crypto will happen along side the implementation of NFTs (a more detailed description can be found at the end of this article).
NFT: The Future Of Crypto
An NFT is a digital object—some computer code and data—that conveys ownership of something. The property could be online, like virtual real estate in some digital world or a special outfit in a video game. Or it could be something physical, like a digital ticket to a concert or a physical key with an RFID chip that can validate your identity for entering our hotel room or your house .
The NFT is a security token. It can be a digital representation of a physical object that is unique and belongs to you. It is a token that has a monetary value on the blockchain. It is a digital asset .
A side note: the representation of a physical object isn’t unique to NFTs , cryptocurrency itself can be a digital representation of a physical object that is unique to you too! PAXG is a good example of this . It is a token that represents a 1/10th of a gram of gold. You can use it to buy Gold secured in vaults regulated by the US government.
The first way the NFT technology could impact the crypto space is by making it easier for crypto investors and traders to acquire the tokens they will need for their particular investment projects. The second and the most important feature is that a number of crypto tokens with similar functions and features will be required for crypto project development.
In most crypto projects, users will want to be able to be rewarded for participating in the crypto space with more crypto tokens. For example; a project may want users to be able to be rewarded for completing activities such as playing a game and earning items as NFT rewards.
NFT Digital Ownership Unlocks New Opportunities
You can own anything digitally with NFTs. The concept of NFTs is not new, and already there are companies around the world offering their service as a new way to purchase, sell and exchange items of different type and value. These companies are focusing on different aspects of NFTs, such as the following:
Developing Digital Assets as NFTs
These are digital assets that contain the content of digital games or digital videos, which can be distributed over the Web or to the mobile device. This is already incentivizing rapid innovation in the dApps space.
NFTs: Selling Digital Assets
When an NFT is sold, both the creator of the NFT as well as the buyer of such NFT need to go over to the digital asset exchange platform the product. There, the buyer gets access to the digital asset (it is not that big of a deal to access the web service). All he has to do is register an account and make a payment on the NFT platform. When an NFT is sold, its price is adjusted up or down with the final payment depending on the amount raised on the platform, which can either be the net or the gross payment based on the amount paid for the digital asset.
NFTs: Earn Digital Assets
Using the same principle as explained in the above paragraph, the NFTs to trade digital assets can also be earned by using the tokens that were generated by previous NFTs. This method allows any holder of NFTs to earn the money that they would be able to earn from selling NFTs on the digital asset exchange platform itself (in other words, it’s not really a “tipping” if the buyer of an NFT can make the same amount of cash from it as the original NFT holder, and in the same way the seller of the NFT is not going to earn double.
Notoriously, uncredited use or pure theft of digital files have been rampant since the beginning of the internet. Digital NFTs could pay dividends to the rightful owner in the marketplace which is strangely a new concept that is a common sense use of NFTs.
Potential Uses for NFTs
What are the potential applications of NFTs? This is a common question. If you have sat down and thought about the potential uses for NFTs, you have probably experienced a mental fatigue due to the limitless directions. Or perhaps, you came up with nothing. Let me help your head spin.
NFTs can potentially provide a viable form of currency, if there are strong legal protections against their use for illegal acquisition of digital files.
NFTs as Currency
NFTs will serve more as a form of legal tender rather than currency itself, until the legal protections can be set up and made enforceable across multiple jurisdictions. The potential for legal NFTs (and associated currencies) to be used to pay for content and/or other services: In my view, there is no good reason why the NFTs in question cannot be used for financial services in all markets the NFTs are present in, as well as to support transactions in more specific financial markets, at least in areas where the use of NFTs can reduce the cost of transferring ownership of certain assets. For example, I would envision that an NFT that is used to transfer ownership of Stocks or land between two parties, might potentially have some unique characteristics relative to other NFTs, that would enable one or both of the parties to perform certain financial transactions on the NFT that could not be performed or completed without them at an international scale online.
Blockchain Governance and NFTs
Blockchain and NFTs can be used to create parallel global governments which use blockchain to create a fair voting and monetary system which can be tracked for data but also keeps the users anonymous and laws and government documents could be stored as NFTs in order to preserve them.
An online blockchain government can be used by oppressed nations to form their own parallel government with its own voting system, laws and currency.