How Web 3.0 adoption will redefine the NFT space
People who have diligently observed the crypto/blockchain market from late 2019 until recently would have noticed that NFTs did not go through a gradual adoption curve, but rather an explosion! The first few months of 2021 saw the NFT market skyrocket straight from sea level into the stratosphere in terms of pricing, adoption and endorsements.
While this may have been an extremely lucrative movement and movement for people flocking into this space just to make some money, this does not represent a healthy growth rate for any market, especially considering how fast and healthy the organic adoption should be . It kind of sounds like the Indominus rex story in Jurassic World as opposed to the Tyrannosaurus rex!!
As might have been expected… Or it might never have been expected…, the NFT market fell with an almost congruent impulsiveness as it went up! This meant that NFTs had suffered collective wrath and were loathed and loathed by the masses… And that included even those who did not know the possibilities and intricacies of such a technological marvel.
This would put NFT’s in a situation… At least for many uninitiated people (which unfortunately is a large part of the world’s population) who need a silver bullet as much as Popeye, the sailor needs spinach after being beaten! This brings us to the billion dollar question of what could be the solution to the situation.
It turns out that the answer would be to create an ecosystem where NFTs will not only be limited to a limited perspective of being short-term investments based on meaningless art and intangible inflation of their values, but a proper arena where the fullest potential in the form of non-fungibility and immutability could be recognized and exploited.
Does such an arena exist today? Yes! It may be in its nascent stages, but it exists. It’s called Web3, and as the name suggests, Web3 is the latest version of the web, and it’s a quantum leap from the predominantly existing version of the web called Web 2.0. Unlike Web 2.0 which opens access to the web to not only consume but also publish information, Web3 opens opportunities for people to not only furnish and consume but also monetize the time, effort and information they invest online, and that too, without intermediaries consuming part of the income they generate.
Web3 inches closer to the ideal version of the web and the way it was originally envisioned. Web3 will usher in a new era where opportunities for profit are not only limited to a handful of large companies, but are given to all users who help improve the experience.
One of the main pillars of Web3 is to ensure an uncompromising digital identity, not only for people, but also for assets. The assets can include virtual real estate, game assets, collectibles and even something as simple as a domain name. It is at this point that the relevance and importance of NFTs comes into play. NFTs, at the very basic level, are tokens that reside on the blockchain. Unlike cryptocurrencies, NFTs are non-fungible, and there is no other equivalent to a particular NFT that exists even in the specific digital ecosystem.
Now let’s combine Web3 and the possibilities unlocked with the introduction of NFTs. With NFTs in place, it is now possible to have an uncompromising identity in the digital ecosystem that is not only undeniable and immutable, but also transparent and verifiable. This can mean that you can get the credits … Both emotional and commercial … For your creations in the Web3 area. Web3 games extend the life of game assets beyond the game life as they are presented as NFTs. Therefore, gambling assets, when presented as NFTs, can be sold on marketplaces, opening a new commercial dimension to gambling. In the long run, the Web3 and metaverses by extension may enable fully digital lives for people, and if that ever happens, every element of that person in the virtual world… Be it identity or attire or ownership records of virtual properties or anything else in the digital world for that matter would be presented as NFTs.
Closing words
Sometimes the resurgence is stronger than the first appearance. We’ve seen this happen with e-commerce, and the second wave of e-commerce was so powerful that its remnants remain powerful even today.
Likewise, NFTs may not have had the best history of sustaining the market in their first wave. However, they are bound to succeed in the second wave if a proper, holistic and powerful use case exists… and that use case is none other than the newest, more immersive and more democratic version of the web called Web3!
Author:
Ramkumar Subramaniam, CEO and Co-Founder at Guardianlink
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