NFTs are all the hype right now in the crypto community. So hype in fact, that even some big-name influencers have started to create and collect their own NFTs in an attempt to jump aboard the ship, and ride out the NFT wave.
As these digital assets pave their way as the new technological boom since web 2.0, more people outside of the crypto realm are beginning to take notice as well, leaving many wondering: are NFTs changing the world, and if so, how?
Non-fungible tokens are changing the world through their ability to digitize literally anything and everything. Not only do NFTs digitalize assets, they create a platform where we are able to transact in a trustworthy and transparent manner, with anyone, anywhere, and at any time of the day, while also being able to prove ownership via the blockchain.
Let’s take a look at all the various ways I believe NFTs are changing the world.
NFTs are digital assets that can be created from literally anything. The ability to digitize anything, be it a house, a vehicle, or even an experience, is really something we’ve never been able to do.
This digitalization allows for individuals, brands, and large-scale businesses to offer their consumers anything they want to, even before the physical product or experience is ready for production.
What’s even crazier to think about is the ability to display anything and everything you own, all from the security of your digital wallet, which is displayed for the public to see.
So, let’s say that elegant house you just bought in Miami also came in the form of an NFT. This NFT also includes the contract for the loan on your house, and even allows you to make payments from your wallet, all while being displayed in your wallet as proof that you own that loan for that specific house.
This is just one example of how NFTs allow us to digitize assets, such as a house. But just imagine for a second, the ability to turn anything digital, sell it, market it, and earn a living doing so.
This, my friend, is all very realistic indeed. Plenty of folks are already making a living digitizing their work and offering it up for sale in the form of an NFT, all from the comfort of their home.
One of the more obvious traits which NFTs are known for is their decentralized state of being. NFTs live on the blockchain; the blockchain acts as a digital ledger that proves ownership, tracks every transaction, and cuts out the middlemen, aka the government.
I believe that many people, especially a large portion of the crypto community, are pushing for a more decentralized world where individuals are able to benefit directly from their own work by ridding the middleman, and offering their skills directly to the consumer.
In a decentralized world, the quality of life for people such as yours and mine could change drasticallyâgiving us the capability to earn more from our hard work and transact more efficiently than ever before. With transactions happening directly between two parties and no middleman to interfere, there’s no buffer time, only frictionless and transparent agreements.
Moreover, decentralization means that there is no permission needed to post something or sell anything from a specific authority, but instead, there are numerous nodes (stored in systems all across the network), with no single “shut-off” button.
Thanks to blockchain technology creating ultimate transparency, we can transact with trust between all parties.
Web 1.0 gathered and organized information, web 2.0 was used for creating and distributing content, and web 3.0 is known as the decentralized web, which is built on blockchain technology. Because the blockchain acts as a digital and permanent ledger, the ability to view any transaction is all available to the public.
This kind of transparent relationship between people benefits everyone. When it comes to web 3.0, there is no more lying about what you own, who you are, or what your interests are, because everything you own is displayed digitally for the world to view.
Both businesses and consumers can appreciate the transparency provided with every transaction that occurs on the blockchain, when using NFTs.
With proof of ownership, we are able to prove exactly what we own, when we got it, and who it came from.
Proof of ownership and transparency go hand in hand. NFTs allow people to prove their ownership of any asset they hold. With everything being stored on your personal wallet address and recorded indefinitely on the blockchain, proof of ownership has evolved into a super easy way to and frictionless way of verification.
This ease of verification can be applied to something as simple as a concert ticket, or something as intricate as a contract for purchasing an entire business.
In my opinion, one of the most beneficial aspects of non-fungible tokens and blockchain technology is the ability to transact 24/7, 365 days a year. Considering that the blockchain is always in operation and people are transacting at different times of the day, all around the world, NFTs allow creators and consumers to interact directly with each other at all hours of the day, and night.
To my point, NFTs give creators the means to offer any product and/or service to anyone, anywhere, and at any time, benefiting both parties by simplifying the transaction and forming a more personalized experience all together.
As well, smart contractsâwhich can be written into NFTsâgive creators the option to add additional value through utility, perks, terms, and everything in between. This is the access we have all dreamed of.
As humans, we love to communicate our interests and passions to others. Social media was the most recent platform that everyone used to communicate what it is they do, as well as, portray their version of themselves. Whether that person portrays themself authentically or not has always been up for debate, until now.
Non-fungible tokens are the new form of social signaling. Except with NFTs, you better be ready to handle the truth, because that’s all you are going to get. As NFTs continue to transform the way we communicate truthfully, it’s safe to say that the people will follow the truth seeking herd.
Spend one day on crypto Twitter and you will see many users flexing their PFP NFTs like it’s everyone’s business. It’s true now more than ever; the NFT community is so small that you are able to tell someone’s status and knowledge in the space simply by taking notice of which NFTs they have collected and who they choose to support.
This type of social signaling is not a new behavior at all, but NFTs give it a new truth. The fakers will not benefit from this new truth, but rather they will be exposed. Likewise, the authentic ones will greatly benefit from remaining honest and proving their authenticity through the adoption of NFTs.
Non-fungible tokens are granting creators a new perk: the allowance of receiving royalties from secondary sales on any of their original work. Creators are able to implement royalty percentages into their work at their own discretion and continue to gain from their efforts, even after the initial sale.
When Vincent Van Gogh originally crafted his masterpieces, such as the famous “Starry Night”, he didn’t make much money, if any, for his artwork, which would easily go for hundreds of millions of dollars today. I don’t know about you, but to me it doesn’t seem fair that artists can pour their blood, sweat, and tears into their work early on in life, only to not benefit from their labor as time goes on, assuming that they already distributed their work and no longer have possession.
This is where NFTs are able to help creators get what they deserve, even if time has passed and the asset has been given to someone else. If the creator sets a royalty percentage however, not only will they be able to earn money from their original work, but the collector is still able to sell the piece for a profit, as well. A true win-win scenario, wouldn’t you say so?
Personally, collectability is what makes the most sense to me right off the bat. In terms of changing the world, the collectability aspect of NFTs is amazing. I’m positive that NFTs have not only been presented to me from a collector’s perspective from the get-go, but to most of the community.
With NFTs’ ability to turn anything digital, it means we can collect more, flex harder, and display to a wider audience. In my experience, when something has a collectible characteristic, in combination with a following of some sort, it turns the entire transaction process into a more enjoyable experience, because collecting things is fun and there is true value to be had. It’s that simple.
It’s true, there is a lot to think about when it comes to understanding how technology, such as non-fungible tokens, can change the way humans interact and transact with each other. If you’re still confused about what is happening to our world due to the implementation of NFTs and the overall culture shift into a world of transparency, continue reading on.
Note: These are the main points I want to make on how NFTs are changing the world. This is my macro belief and observation, but as time progresses, so will the way we use and interact with these digital assets.
NFTs do not have the best reputation when it comes to being green or conserving energy and resources, mainly due to the amount of energy it takes for the systems to solve complex, algorithmic equations that some of these blockchains have in place in order to function properly. So with that being said, how is it that non-fungible tokens can help us?
NFTs can help us all by allowing us to transact with trust and transparency between all parties and not having to report to a centralized governing system in order to do so. Moreover, NFTs allow creators to unlock more value by being able to supply their consumers with exactly what they want, when they want it.
In the macro, NFTs make transacting, holding, and viewing assets fun and frictionless, which correlates to more time for us. Time is priceless, so the fact that NFTs can give us more time is equally priceless in my humble opinion.
Why NFTs all of the sudden?
To some, it may seem like NFTs were waved into existence by Satoshi Nakamoto (Bitcoin Developer), himselfâmaking way for this new trend of collecting jpegs and FOMO’ing into the next “best” animal project. Just to be clear, no one waved a wand to my knowledge, and Satoshi did not make the first NFT. So, why are NFTs such a big deal all of the sudden?
The emergence of NFTs into society’s eyes was propelled by the Covid-19 quarantine mandate, which occurred on March 11, 2020. With everyone working from home and spending more time exploring the digital world, NFTs quickly grew into something that many became aware of, especially after the sale of Beeple’s $69M NFT, “The First 5000 Days,” which made national news.
Beeple’s sale is undoubtedly a moment in NFT history which will never be forgotten, but it’s not the only facet that has created all the hype surrounding non-fungible assets. This sale, along with many other big-number sales have helped pave the path for NFTs to thrive and continue to supply value to you and me.
As more businesses and influencers begin to incorporate non-fungible tokens into their every day plan of action, the community of these popular entities will follow.
All of these elements are the reasoning and thought behind my thesis on how NFTs are changing our world. Anytime there is attention put on something, the masses tend to follow, and when the masses follow, everyone considers it to be the new norm without even giving it a second thought. It has been proven with the internet, phones, and of course social media.
Now it’s time for non-fungible tokens to prove their worth to the world. Will you be a part of the movement? Or will you sit-back and let opportunity pass you by? The choice is yours.