As reported by Reuters, NFT sales volumes surged to $10.7 billion in the third quarter of 2021, up more than eightfold from the previous quarter, according to data from market tracker DappRadar.
What is an NFT?
The term NFT is becoming more familiar to those interested in the crypto market, so what is an NFT? “NFT” stands for non-fungible token – a unique digital asset built on blockchain technology. NFTs are considered modern-day collectibles, which can prove that you are the sole possessor of an original digital or physical object. NFT compatible blockchain list now includes Binance Smart Chain (BSC), Polkadot, Tron, Tezos, and many more. Currently, most existing NTFs are on Ethereum or BSC. NFTs can be embedded within the smart contracts that include specific codes, containing all essential information for managing the significant actions related to NFTs such as verification and transfer of NFTs.
NFT trend explosion
The development of NFTs includes applications in the expanding area of decentralized finance (DeFi), where they can be used to set up valuable assets such as art, rare collectibles, or even real estate as collateral for loans or as financial contracts for insurance, stock options or bonds. NFTs are now very popular in the gaming industry because these tokens solve some of its existing problems. The special and attractive characteristic to players is that the currency and items in the NFT games can be converted into real money through exchanges with very high value. However, the collectibles sector is arguably the most impacted by NFTs. The major problem that NFTs resolve in this industry is proving authenticity and ownership of a collectible asset. Furthermore, NFTs seem to change the art and music industry since they offer an incredible opportunity to artists surrounding ownership. Artists can deal directly with the buyers and concurrently be able to keep the intellectual property for each art piece, which can provide a constant revenue stream in the form of re-sales.
Realizing the crypto market potential, new millionaires are looking for other digital assets that keep value to invest their profits. The constantly increasing traded volume for NFTs has attracted more and more investors to participate in this industry. It is amazing to mention the arrival of many famous brands in the NFT ecosystem. Accordingly, the brands could invest in the creation of profitable NFT-based assets. The remarkable examples include Turner Sports, Nike, Warner Music, Atari, Louis Vuitton, etc. Especially, Tiktok is going to launch their first-ever creator led NFT collection on the Ethereum blockchain. Correspondingly, NFTs are a new way for creators to be recognized and rewarded for their content and for fans to own culturally significant moments on TikTok.
NFT future applications
Thanks to outstanding characteristics, NFTs also seem to soon create more actual applications. Similar to the core blockchain technology, NFTs are believed to be a potential for different business use cases as they support better digital transformation.
- Higher document security and storage
In the situation of technology development, many companies need to store their business-sensitive information with extra security. NFTs can be highly beneficial in avoiding data alteration and duplication. As these NFTs go beyond the basic blockchain functionality of robust encryption, it eliminates the risk of any data forgery or unauthorized exchange.
- Paperless transactions
Most industries require substantial paperwork for the majority of the operations. The storage of all information regarding signatures and the individual in an NFT provides the scope for paperless transactions. Thanks to NFTs, the verification process can be made quick and seamless.
- Identity protection
NFT can play an important role in protecting individuals’ online identities without the need for carrying physical documents. Those who often need to show their documents for verification can take them digitally without losing authenticity. NFTs, on the other hand, can make it easier for people to find legitimate specialists in a variety of fields. Individuals can request these professionals to present their NFT and verify it in real-time.
NFT has become a dynamic phenomenon attracting the interest of many people who want to invest in cryptocurrency. With preeminent features to be applied in many different fields, NFT is expected to continue reaching new highs in the near future. Recently, some of LiveTrade’s strategic partners like Moniwar and HanaGold have made plans for deploying NFT projects to respond to this trend and continuously enhance their services. These will also be appealing projects for NFT trend followers, contributing to the development of this sector.