Understand the current value and future direction of NFT

Published on 6 Days ago   57 views   0 Comments  

The main value of NFT at present is to authorize artists, creators and collectors to exercise their rights of distribution, resale and collection.

NFT artwork "the first dinner" was successfully auctioned at 103.4 eth

Is NFT a digital asset? yes. Because asset is defined as "something considered valuable", if people are willing to buy NFT, it is a digital asset. Just as art collectors decide to buy Qi Baishi's paintings - or spend $12W on bananas taped to the wall by self-taught artist Maurizio Cattelan - it can be seen that the willingness to buy something does not need to be based on any objective reality.

When an art collector bought a rotten banana taped to the wall, they knew it was a banana taped to the wall. So, is our purchase of NFT equivalent to the purchase of pictures "stuck" on the blockchain?


Value of NFT


What is important to understand NFTs is how they become valuable. Unlike BTC, Eth and other tokens, the value of NFT is usually not so rational, but emotional or equity mapped; For example: digital picture documents, proof of rights and interests, pass, and even admission tickets to a community. Therefore, NFT owners must address the subtle relationship between ownership records on the blockchain and what they should have (not on the blockchain).

Consider this: would you buy an NFT for yourself, a blockchain record that contains only a unique data string, without involving digital or real-world assets? Then you must not be interested. If we tell you that it is unique and Jay Chou once owned it, or many others are scrambling to buy it at a high price, would we still think so?

However, when NFT represents digital works of art, NFT usually contains a link to a public media file on the Internet - which can be accessed and copied by anyone. Then many people will question: what is the meaning of buying NFT?

At least for physical art, forgery is very difficult. But in the world of data, it is very easy to make a copy; Therefore, the value of NFT is reflected - you are the only owner of its genuine products. Only you have the right to decide where it belongs.

Sounds vague? But we think on the other hand, even if you own the Mona Lisa, you can't stop others from hanging an imitation of the Mona Lisa in your home; NFT is the same. Although everyone can access and copy, only you can hold its only genuine product.

However, the current laws related to NFT are not perfect enough. After the terms such as copyright and secondary creation are improved, the combination of NFT and works of art will have greater value.

Although digital art is the first and the most important application of NFT, the fact is that the encryption industry has only scratched the surface of NFT's technical capabilities.

In the next stage, where is NFT most likely to show its skills?


Medical records and identification


Medical records and identification are important information, which is difficult to replace even in the digital age. This is an area where NFT technology can provide a wide range of practical use cases, and most people in society can benefit from it.

Instead of allowing large medical institutions to record, manage and track individual medical records, the unique NFT assigned to everyone can store all medical information while maintaining confidentiality and privacy.

It will also allow people to control what information they share with health providers when seeking treatment, while keeping less relevant personal data confidential.

It is possible that one day, this process will start at birth, and the health care provider or government agency will issue the NFT birth certificate to the newborn. This can also be the beginning of establishing a digital identity that can be tracked in the form of NFT.

With digital identification, individuals will be able to limit what information to share when they need to identify information. For example, an application can verify whether a person is over the age of 18 without disclosing other information usually contained in the ID, such as home address.


Real estate and asset tokenization


The tokenization of real estate and other real-world assets may be one of the most extensive and paradigm shift applications of NFT technology, because it has an impact on many industries.

In addition to being a simple use case for tracking and verifying project ownership, the tokenization of assets will eventually allow them to be used in many different applications in decentralized Finance (defi).

Eventually, individuals will be able to use NFT representing their housing contract as collateral for the defi agreement, which will allow them to borrow funds in a manner similar to refinancing for use elsewhere.

The monetization of larger items, such as hotels or luxury yachts, also allows the decentralization of ownership, giving access to such items to those who usually cannot afford them.

There is no limit to the content that can be marked and tracked on the blockchain, and it is likely that all forms of assets, including stocks, bonds, works of art, rare collections and luxury goods, will one day be expressed in the form of NFT.


Intellectual property and patents


NFT is ideal for tracking intellectual property (IP) and patents. They provide a way to prove the ownership of any content, which can take the current trademark and copyright system to a new level.

The data saving function of blockchain technology allows to track the whole history of IP and add time stamps, providing a method to provide undeniable ownership. Similarly, the data of patents or inventions can be recorded on the blockchain in the form of NFT, providing a method to protect and prove ownership.




Ticketing


One use case that has been explored and implemented in entertainment venues around the world is tickets. The ability to create an unlimited number of unique NFTs allows venues such as concerts and sports venues to issue tickets in the form of NFTs for easy verification or transfer.

The popularity of smart phones in society makes digital ticketing possible, and the integration of NFT technology will help make this process more efficient and easy to track.

ChinaJoy online exhibition and tickets


Exclusive membership


The final application of NFT technology is as a general practical token, which performs specific functions, such as verifying the membership of exclusive clubs or providing access to specific services, which is commonly referred to as pass.

Many NFT projects are already using this feature. They are in a special website or discipline group. They can access this feature only after verifying the ownership of NFT in this specific collection.


epilogue


The emergence of blockchain allows us to see more possibilities of value generation and transmission. We have witnessed the process of digital asset from scratch, and are also exploring the value prospect of asset digitization from zero to infinity. Behind it is the evolution of ideas driven by technological progress, which makes us no longer rely on the current stable and inefficient system. Starting from the ideological orientation of "NFT +", we are looking up to the broader starry sky.

This transformation of assets and values will not stop at the evolution from information interconnection to value interconnection, but with the support of blockchain, promote human beings from centralized information system to decentralized value system, as well as a new chain governance system.

Perhaps decades after the birth of the Internet, we can break through the barriers on and off the chain and realize the uplink of a wide range of assets and information. The value on the chain will account for most of human life. The world will embrace blockchain and mankind will enter a new way of life.


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