The Future of NFTs and Important Systems to Trigger Mass Adoption.
As we have come to know, NFTs or Non-Fungible Tokens are unique sets of data stored or registered on the Blockchain.
They are cool ways of verifying ownership and offering access to goods and services.
Currently, it is tough to separate the noise from the signal, leaving most people skeptical about the future and usefulness of NFTs.
Last week, I did a questionnaire on NFTs where most of the respondents regarded NFTs as fads and useless.
Such doubts are hurting the rate of adoption for this new technology, and it is left for enthusiasts, experts, and participants in the ecosystem to become proactive by teaching and promoting sustainability and great use cases of NFTs.
We could start by asking ourselves honest questions to determine where more improvement is required.
Our first question is;
What will the future of NFTs look like?
The hypes will definitely be over, and people might not be able to sell stolen artworks for thousands or millions of dollars.
Big companies (and industries) will have to integrate NFTs into their products and services.
You will be able to fractionally own assets, access games, and virtual worlds with the help of NFT Technology. Even trading and owning tokenized physical items will become mainstream in less than 2 years.
We should also be expecting governments to launch the first Blockchain ID that will most likely be NFTs and creators or artists will be having more ownership rights to their works which in the future will take away manipulation by record labels and middlemen.
However, before these wonderful things become a reality, the next important questions we should ask are;
- What about some current problems associated with owning NFTs?
- How about effortlessly duplicating and reselling stolen digital files minted on the Blockchain?
- What about the environmental harm caused by minting NFTs on some Blockchains?
- Currently, there are less than 50 million NFT users globally... How can we get the first 1 billion users?
Interesting questions, aren't they?
The NFT space still has more improvement to be made and for this, here are some systems we have to put in place to make the future of NFTs an interesting one.
These systems can also be regarded as techniques or technologies.
• Artificial Intelligence
• Good User Experience and Education.
Just as you can move from Facebook to Messenger and then to Instagram using the same account without compulsorily creating something new,
NFT platforms have to interoperate so that users can move data seamlessly across platforms without losing the original properties or qualities.
For example, transferring a BAYC NFT from your Ethereum wallet to your Solana wallet without paying high gas fees, losing the asset or waiting for several minutes.
• Artificial Intelligence
Artificial Intelligence will play a great role in helping us identify, monitor NFTs, discover fakes and authenticate tokenized items.
NFT theft has been skyrocketing recently, and this brings the need for a better way of securing and verifying the uniqueness of these types of assets.
One of these ways is Perceptual Hashing; algorithm used in comparing multimedia.
It's no doubt that Ethereum is the leading Blockchain for the minting and trading of NFTs however, Ethereum is currently not sustainable/eco-friendly.
According to Statista, a single Ethereum transaction uses more energy than over 100,000 Visa transactions combined.
Another research by Digiconomist show that validating these Ethereum transactions leave large amounts of Carbon footprints on our planet (more than some small countries).
We shouldn’t be harming our planet just to mint or trade NFTs
As the day goes by, and as the world’s citizens are becoming conscious about our planet, we have no option but transitioning to a scalable eco-friendly Blockchains that can process huge amounts of transactions in a short time, prioritizes the security of data, and decentralization of activities without causing a single harm to our environment.
• Great User Experience and Education
A recent study by Bakkt shows that the majority of our world's population doesn't know anything about Cryptos and many users find Decentralized Applications slightly difficult to use, unlike centralized (usually web2) apps.
Blockchain-based Product Designers and Developers should put more effort into building platforms that are easier to use, useful and desirable by the end-users.
Boosting literacy about Cryptocurrencies, Blockchain Technology, providing great and desirable platform experiences for users will help more people adopt NFTs.
This in turn helps us create more use cases that will drive the ecosystem forward and benefit participants.
These are some steps we need to put in place for us to make sure we're not consciously leaving anyone behind in this revolution and helping us in bringing the first 1 billion NFT users in 5 years.
Let me know if there are other important systems I omitted.