Tens of billions may seem like a lot, consider the potential of NFT and how much more the industry could be impacted by the technology. In essence, NFTs are tamper-proof tokens of other assets that are minted directly on the blockchain. How they live on a shared blockchain ledger, NFTs are publicly traceable and offer the means to verify digital origin and origin for the first time.
NFT is not just limited to digital collections. Any tangible or intangible asset can be tokenized, from digital and physical art to movies, songs and even real estate. Due to its programmatic capabilities, NFT can be applied to various industries to create more transparency and support trustless digital ownership. Below we'll explore the five most exciting NFT trends of 2021 and how tokenization is being implemented across a wide range of industries.
NFT revives the digital art industry
Since digital artist Beeple Everydays: The First 5000 Days sold for a record-breaking US$69 million as an NFT, interest in digital art is rebuilding. This is because NFT is present for the first time in history that digital origin and ownership files can be authenticated and tracked via blockchain.
In addition, NFT allows artists to sell their artwork directly to their fans, in the peer-to-peer way the Bitcoin whitepaper envisions. The token also introduces new monetization options, such as offering fractionated NFT, or selling NFT of a work in progress, which gives fans a stake in the artwork's future success. Creating smart contracts to NFT can also create an additional source of income, allowing artists to benefit from royalty payments and secondary sales of their artwork.
Some of the most notable digital art NFT acquisitions this year include the sale of Pak's US$17 million “The Fungible” and the US$3 million sale of Andy Warhol's “Machine Made”. But NFT can also be used for tangible and intangible assets. hype, Beeple sold the first physical art and accompanying NFT for US$29 million, in November 2021. “Human One” consists of a seven-tall box with LED screens on each side, featuring an animation of astronauts walking through a surreal changing environment. What makes this work of art is that Beeple will continue to create unique ones based on global events, staying relevant throughout his life.
NFT redefines play-to-earn games
NFT has injected newfound momentum into gaming, making blockchain-based and crypto-powered play-to-ear gaming a reality. Applied to in-game assets, NFT opened a new chapter in the history of the game, selling the first time players actually own their assets, which they can earn to profit in the NFT market.
Axie Infinity is one of the most popular games of 2021, take advantage of NFT and cryptocurrency. In August, NFT Axie Infinity market topped the trading volume of US$1 billion, as the number of daily active players also crossed 1 million the previous time. Beyond the game's asset, Axie Infinity is a character, meaning users who want to play must first purchase three NFT Axies. Considering the limited number of Axies, the ever-expanding player base gives these NFTs an element of scarcity, presenting the possibility of their price appreciating in the long term.
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