The idea of buying and owning an image online may seem absurd to a layperson, but it’s actually today’s reality. This image is an example of an NFT – an innovative development in the digital space that has been the talk of the town. With such nascent technology, others have casted their doubts on the longevity of NFTs. Meanwhile, many still believe that NFTs are here to stay. But first, it’s important to understand – what exactly is an NFT?
What Is An NFT?
A non-fungible token, also known as an NFT, is a digital asset that is certified in the blockchain. A digital asset can be any collectible in the digital space – images, in-game items, virtual avatars, and even domain names. Because these are found in the blockchain, NFTs are naturally unique and verifiable. It essentially sets the standard for data security and identification.
Most NFTs are supported on the Ethereum blockchain. This doesn’t mean that developments have been lacking in other blockchains. Solana, Binance Smart Chain, Cardano, and Tezos are some blockchains that had recent developments. That’s why it’s crucial that you have a multichain Web3 wallet when you’re an avid NFT collector, so you can store all your tokens in one wallet.
NFT Trends You Need To Know About
Curious people get into the world of NFTs looking for the next big thing. In fact, it takes a lot of skill and even luck if you want to find the next Bored Ape Yacht Club (BAYC). While there the NFT space keeps growing and growing, it’s useful to shut down the noise and focus on what truly matters. Here’s how you can narrow down your search looking for the next NFT:
The idea of a virtual world might sound cool, but the idea of actually owning real estate in the virtual world might be even cooler. The concept of the metaverse gained popularity – thanks in part to Mark Zuckerberg – and it seems that the shift to a virtual world has piqued the interest of many big players. With the metaverse concept gaining traction, companies are in a race to create the biggest metaverse. It’s good to keep an eye out for any developments in this promising space because of the many use cases of the metaverse, from marketing to gaming. You’ll be able to attend future events in the metaverse and interact with your friends like never before – it’s truly a fresh experience that people are willing to try.
Who doesn’t love playing and earning money at the same time? With the rise of the biggest NFT game, Axie Infinity, came the wave of GameFi. And that wave still seems to be running as of late. It’s worth noting that developing a playable game doesn’t happen overnight – it may take years to develop. Once AAA game developers successfully create games that can garner a massive following, that would be a huge win for GameFi. Some promising games that you can watch out for are Illuvium on Ethereum and Star Atlas on Solana.
There’s nothing more affirming than seeing big brands jump into the world of NFTs. Many companies, such as Adidas and Louis Vuitton, have already released their own set of digital tokens. With many companies keen to dive into the NFT space, it’s only bound to gain popularity. It’s understandable why many are skeptical about NFTs and their use cases. Others believe this to be a publicity stunt, but many brands have taken it seriously. But when big companies start getting in the picture, that can make one think twice about it. With the huge amounts of capital that these companies have access to, developments in the NFT world are inevitable.
Look Beyond Ethereum
While it’s true that the majority of NFTs are stored in the Ethereum blockchain, you shouldn’t discount the recent developments in other blockchain networks. Solana, in particular, is a great alternative to Ethereum considering its low barrier for entry – which is credited to its low transaction fees (or gas fees, as they call it). With Solana NFTs being recently incorporated into the largest NFT marketplace, Opensea, it would be interesting to see the growth in Solana NFTs. Surely, there are some hidden gems that you might have missed out on if you’ve caged yourself in the Ethereum network. The next time you’re making your search for the next NFT, consider Solana and other alternatives – and just maybe, you might find the next big thing.
Many have raised eyebrows with the simple mention of the word “NFT” – going as far as telling NFT owners that they can easily take a screenshot of their profile picture and claim ownership. News flash: it’s much more complex than that. A new innovation will always have naysayers, but if you’re one of the many who believe that NFTs are the future, then there are certain trends you must look out for. With many use cases yet to be explored, the growth of the NFT space seems to show no sign of stopping – so hop on the ride, this is just the beginning.