What is the future of NFTs? – BRINK – Conversations and insights about global business

In early May, The Wall Street Journal published an article which shook up the NFT world: “NFT sales are flatlining: Is this the beginning of the end of NFTs?” Understandably, this has raised some concerns and led people to ask themselves: Where is the market going, and are NFTs still a good source of money?

In a nutshell, NFTs are unmodifiable digital assets that represent works of art, pieces of music or real objects. The truth is that recent claims that NFT sales are flatlining have been widespread reprimanded: On-chain data from Dune Analytics’ dashboard highlights that the NFT market remains robust, thanks to continuous development in their utility. It also shows that NFT users and transactions are much higher than what is reported by Nonfungible, the resource used in the WSJ article.

But even though NFTs have exploded in popularity, only one in four Americans can explain exactly what an NFT is, according to a study by Money magazine and Morning Consult.

Community, culture and utility

The value of NFT collections is built on three pillars: community, culture and utility. When looking for value in NFT collections, it can be a combination of several or just one aspect. Some of the best examples out there are the most famous. The Bored Ape Yacht Club is a number one example of community activation; both Generative Art (Artblocks) and CryptoPunks have pushed NFTs into the cultural sphere, and the usefulness of gaming NFTs is an excellent indicator of how innovation can take place in space.

The NFT market may be volatile, but there is potential in it. Volatility allows investors to develop strategies such as buying low, selling high, which creates the opportunity for astronomical returns. On top of that, a volatile market provides the perfect opportunity to filter the strongest projects and the holders from the weakest.

People are looking for greater functionality. Potential buyers want to know: Does this NFT make me part of a wonderful community? Do I get premium access to exclusive drops? Manufacturers of NFTs will realize the need for value-adding falls, and we will see more creative uses for NFT tools. And NFT collections with none of the above value offerings will slowly be filtered out.

Only in 2021 crypto job ads on Indeed increased by 118%.

Knowing that providing value to customers has always been a non-negotiable part of marketing, NFT creators have begun designing more engaging tools. A good example is entertainment and travel companies that sell NFT tickets. In this way, customers can exchange their tickets without having to deal with customer service.

Furthermore, the meta-verse has become a rapidly growing industry – JP Morgan Chase recently said the metaverse would generate $ 1 trillion in annual turnover for companies that span a cross-section of industries. NFTs will be the building blocks of these digital worlds, and coded tools will unlock experiences such as VIP events or unique discounts.

Interoperability will be crucial

NFT’s ability to create communities and provide access benefits online and in real life makes them the perfect tool. As NFTs and metaverses evolve, so will the complexity of their use, and interoperability between metaversers will be as important as their usefulness in real life.

Since the metaverse reflects the real world, interoperability is at the heart of success. Metaversen – the integration of boundless virtual worlds – aims to create fluid sociocultural interactions that go beyond our traditional physical world. By reaching wider, the meta-verse will offer more variation in content, and interoperability will expand the possibilities for benefit, and provide a seamless experience and higher value for users.

Digital transformation and the use of blockchain technology also means that the employment landscape is changing. More people are already working with NFTs, blockchains and cryptocurrencies than ever before, but it will become increasingly common. Only in 2021 crypto job ads on Indeed increased by 118%.

Blockchain and NFTs will provide more transparency to the digital sphere as their ability to prove digital ownership will act as an economic incentive for adoption.

Gen Z is more likely to invest in cryptocurrencies and NFTs than equities compared to millennials, and their investments will provide energy to the markets as digital assets become increasingly mainstream. Like assets, these sectors will grow as younger, digitally native generations mature.

Greater simplicity of Adoption Needed

Web3 is another chance reinvent and reimagine the unwanted parts of Web2.0 and smooth out the curls of UX. Because blockchain is a decentralized and trust-free environment, existing Web3 technology has security considerations. When there are hacks or attacks, users have full control over their data and resources, and there will be no intermediaries to turn to. In Web3, security is a top priority and does not hamper growth and development.

The reality is that the NFT market will strengthen and grow when it is easier for more people to adopt. Therefore, we need to make the NFT journey less complicated and more recognizable through continuous education from providers and mainstream media.

Although NFT marketplaces offer one-click sign-in options, new users will have to feel discouraged from using a platform if they have a problem while creating an account or trying to buy and sell NFTs. And the lack of live chat support can create the perfect storm for customer sales. Twitter and Discord are the most effective social media channels for keeping your audience up to date and explaining the whole process of buying and selling NFTs. Further education can be in the form of videos, instructions and built-in info buttons via websites.

The point is that we are at the beginning of the NFT journey, and the market is maturing: We expect to see a future where many things will develop into NFTs.