With the evolution of digital platforms and the internet as a collective, the applications of technology have been extending in unique ways. A major element of the latest transformation has been in the form of blockchain and its ability to provide support to existing digital applications. From digital security to art, the applications have been expanding to offer existing new prospects to enthusiasts.
If you’re someone that is eager to learn more about the NFT and digital art phenomenon that has taken Twitter and social media by storm, you’re definitely not alone. The latest wave across the blockchain world has taken everybody by storm, with monumental global figures becoming a part of its acceptance
From Mark Cuban to Gary Vaynerchuk, NFT prospects have been at the forefront of attention through the influencer world. The scale of the growth of the phenomenon has rapidly expanded from limited digital art collectibles to monumental partnerships like the NBA Topshop that have witnessed collections selling out within seconds.
Today, we will explore the basics of the NFT phenomenon and delve into the potential prospects that it holds.
What are NFTs?
Non-Fungible Tokens (NFT) are non-mutually changeable tokens that are utilized to mark unique digital multimedia and art. Unlike conventional tokens that are consistently mined, NFTs are limited in their availability and thus are the optimal mediums to highlight unique content and artforms.
The applicability of these tokens has rapidly laid the way to the growth of a transformed digital collectibles market that is based around the inherent scarcity of digital resources. NFTs make it viable to prove the scarcity of the assets through the supporting blockchain technology, thus making them a viable outlet to highlight an extensive range of assets. The example of NFT application has been observed across a range of diverse use cases ranging from digital real estate to multimedia content and art.
Primary Value Proposition in NFTs
The central reason behind the growth of the NFT phenomenon has been based around the concept of provable digital scarcity of the assets. With the evolution of the blockchain, the provability of digital resources has been extensively simplified. This has allowed the integration of Intellectual Properly management across the blockchain to leverage conventional asset markets such as fantasy sports and cards into the digital world.
The rapid growth of the digital art market has been based on the growing appreciation for digital art and assets. From the appreciation of cosmetic digital assets to the growing fandom behind the digital art space, the value in the market has been rapidly elevating. Examples of the growing demand for artwork have been reflected with the auction of digital assets such as “Everydays: the First 1,000 Days” by Beeple. The pure-NFT auction garnering the eventual sale value of $69 Million is reflective of the scale of the demand across the market.
The scale of growth has been consistent across other key avenues, with rapid growth being observed by art avenues in the digital world. The primary factor behind the growth can be associated with the demand for appreciable art and its scarcity. Since the inception of the CryptoKitties phenomenon by DapperLabs in 2017, the NFT space has been defining new conceptions around digital art while providing an outline for the collectibles market of the future.
Similar trends have been present throughout the sports world, with platforms such as Topshop and SoRare defining new prospects of digital involvement for sports fans to interact with their favorite athletes.
Exploring Value for the Artists
A major positive impact with the growth of the scale of the market has been the benefits afforded to deserving artists. The growth of the financial scale of the digital art market has led to the encouragement of a new legion of digital artists that are finally able to reap the rewards for their creativity.
Stemming from an authentic connection to art enthusiasts, the current NFT market presents an outlook similar to the Wild West. With innovative artform and original content emerging from diverse avenues, it is clear that the growing demand for NFTs is reflective of the broader surge in the value of digital assets. The involvement of established global brands has been a key factor behind signaling trust and growth
Even though the landscape of NFTs offers a promising avenue for digital collectors to delve into value and have scarce digital assets, key concerns in the space stem from doubts into the assurances. With the nature of digital assets, illicit reproduction and piracy of the assets have remained a major concern.
However, the concern has been primarily answered thanks to the cryptographical link of the digital assets to the broader blockchain. The digital aspects of the ledger and its storage provide a comprehensive layer of reassurance and security for potential investors that are looking to validate their digital assets. The blockchain layer also helps validate the digital assets in terms of their past history to maintain a credible layer of verification and authenticity.
Growth Potential of NFTs
From the latest Beeple collection selling for almost $70 Million on Christie’s to the massive growth rate exhibited by the NBA Topshop phenomenon, it is clear that the prospects of blockchain application across art and digital collections are not slowing down anything soon. Backed with comprehensive Intellectual Property protection partnerships and corporate investments, NFTs presents an exciting opportunity for digital investors to become a significant part of a historic phenomenon. The growth potential exhibited by the NFT market is also a reflection of the growing acceptance of blockchain-based applications into the mainstream digital world. It is clear that the applications of emerging technologies on the blockchain have the potential to uproot the conventional structure in a wide range of applications.
However, just like other investment avenues, it is essential to take the time to explore the core factors across the NFT phenomenon to have a clear insight into the direction of the industry moving forward.