In the world of cryptocurrency, an unlikely hero has emerged. NFT. While the basic use for crypto coins and tokens remains a form of digital currency, more uses are being discovered for it over time. Considering that the first crypto, bitcoin, was created and launched solely as a way to send payments through the internet as an alternative to traditional transfer methods that include inter-bank transfers, it is remarkable just how much cryptocurrency has evolved. It is reminiscent of the nineties’ evolution of the internet. Everyone was so excited when the internet made emails possible. Then people realised that the internet was more than just a way to send messages – it was a web of wealth that could host entire businesses and virtual communities. That is exactly what is happening in the crypto world and it is in one of the steps in the evolution of crypto that NFTs were born.
An NFT (Non-Fungible Token) is a unit of data on a blockchain. The words “non-fungible” mean that it is not transferrable or cannot be substituted, thereby ensuring clear proof of ownership. While NFTs are mainly gaining mainstream recognition through popular gaming cryptos like Axie, an NFT can actually be linked to a number of varying functions. Areas in which NFTs have been steadily growing are gaming, music, collectibles, fashion, product brands, crypto-based memes, virtual world identities and digitally-stored NFT art, among others. It is no surprise that NFTs are also gradually being considered as a digital form of certificate and patent proof of ownership.
NFTs operate or are stored on the blockchain, ensuring security through encryption. The blockchain, therefore, serves as a platform and a model of security for the NFT. NFTs also work through smart contracts that ensure that no action can be made outside the actions specified on the smart contract. This protects both parties. The blockchain is also a digital ledger that stores all crypto-related transactions, providing records and accountability.
NFT play a unique role on the blockchain. While most cryptos can be exchanged or swapped and have no attachment to the holder, an NFT is in itself proof of ownership. An NFT can be traded, but it belongs to its owner. When you listen to music linked to an NFT, that does not transfer the copyright to you unless the contract tied to the NFT allows you to do so. It still belongs to the owner – just like buying a book or audio file does not transfer the rights to you. However, with an NFT it is as if you share many of the benefits of the owner of the product tied to it – depending on the NFT design and the smart contract.
First, due to the growing realisation of their uses and importance, cryptos affiliated with NFTs have been performing very well on the market. That performance in itself has acted as a self-marketing tool, and NFT-aligned cryptos have garnered massive profits for investors and owners as a result.
Secondly, the fact that more popular cryptos have begun to create their own NFT projects (perhaps due to their outstanding performance) has perhaps played the biggest role in NFT adoption and popularity. Some of these are Binance Crypto.com Coinbase, Facebook-linked virtual reality Metaverse and many other upcoming projects. Consider it as having a ripple effect: whenever a famous or influential character or high-performance crypto launches an NFT, the popularity of NFTs continues to rise even higher.
It is impossible to say for sure and (just like in the early days of the internet) there is a lot of scepticism. Is it safe? Is it’s popularity the result of temporary hype that will fade away? Will it work? Here are some reasons I believe NFTs are not only here to stay but are indeed the future:
*The fact that music artists and the film industry have embraced NFTs and are making them work means that they will only grow in value and towards more mainstream use. Many music artists have realised both the financial and the sentimental value that is tied within NFTs. After years of earning peanuts from streaming services, they are now able to have more control of their music through the sale of NFTs, earning much more money. Music fans are able to collect NFTs from their favourite artists without going through third-party sellers, and this has turned out to be a very appealing way of connecting with their artists.
*The film industry is quickly redefining NFT meaning by introducing NFT ticketing. Entertainment brands like WWE are already pondering using NFTs for their fans. It certainly sounds more like a temporary hype.
*The fact that cryptocurrency only continues to gain more mainstream adoption means that NFTs, an important part of crypto and a driving force of its evolution, will only get bigger.
*As more major brands discover the importance and convenience of NFT in cryptocurrency, an industry that is still in the testing stages may balloon into one of the leading industries on the planet. It is indeed an exciting time to be alive.
*The elephant in the room – the fact that NFTs serve as non-fungible tokens that serve as proof of ownership opens the doors to thousands of possibilities for future adoption in different industries – including other digital assets, finances, the world of patents and certificates, branding, adoption for personal properties, etcetera.
While many people may view NFTs as mere business tools to make money, their unique ability to serve as identities for assets, businesses etcetera mean that they are just beginning an upward move towards mass adoption. What may have been assumed by some to be too good to be true may turn out to be too good to ignore in the future. In a world where there is a need for verification and evidence in transacting and the need for empowerment in personal control of one’s own assets, the promising future of NFTs cannot be overestimated.
Our company; Funganomics® is materialising with the momentum to create a tidal wave having developed initiatives allowing various artists and brands from a multiple of genres to scale within this rapidly evolving space. Whether film, music, sports, fashion, art or almost any other industry, the solutions and initiatives under the Funganomics® brand have incredible potential here to yield scalable results.
The Funganomics® brand itself is separated into several specific and laser-honed divisions. These are individually geared toward current and future genre trends of NFTs and we fully expect to help members and brands flourish utilising our community based model and our NFT Marketplace platform Fungatopia®.
One such division; FGS Games leverages the power of NFTs and multi genre NFT Play To Earn games to increase the value of character NFTs in line with the development of our brand. What’s perhaps more impressive, certainly very notable, is that all of these divisions are strategically integrated into the Fungatopia® platform and promise to introduce further headline grabbing games that utilise Virtual and Augmented Reality gaming experiences to follow our debut game offering; Funganomics Ultimate Showdown (FUS). There are many more products that are secured within the pipeline for development to continually strengthen our proposition and indeed our token offering; FGS.
While some may use separate companies to quench their P2E gaming thirst and NFT marketplace options, to the discerning individual, Funganomics® endeavour to be all things to all men right out of the blocks having utility for almost any industry that wishes to enter the space. The Elephant in the room therefore seems to be in the shape of a brand called Funganomics®.