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How NFTs Changed Our Perception of Digital Value

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NFTs — we’ve all heard of them. Many associate NFTs with his JPEGs, which sell for millions of dollars. For those who know a little more about technology, game phi Metaverse avatar assets.Those who have followed the accelerated economy for some time will understand what they are really aiming for — digitizing assets and securing digital property rights, creating new markets, and the ability to be used in all areas. industry.

But what do these different layers of meaning behind NFTs have in common? For one thing, they’re all about value. Why are easy-to-copy JPEGs costing millions of dollars? Why are NFTs useful in the metaverse, and why should assets be digitized? These are all valid questions. and the answer lies in understanding how NFTs have evolved our perception of digital value.

NFT’s winding history

The definition of NFT has changed dramatically over time. digital art, memes, ethereum The idea behind NFTs started around 2015 (blockchain A token representing ownership of a unique asset) was launched on the Bitcoin chain in 2012-2013 and has been used for cars and real estateWe had an idea, but no execution. There was no clear direction. Color coins were briefly described as a new technology with great potential for the future.

That direction became clear in 2015 when peer-to-peer financial platform Counterparty partnered with video game creator Spells of Genesis. Together they issued his first ICO (Initial Coin Offering) and distributed in-game tokens, which is GameFi’s first case and which also exists on the blockchain. Soon, Counterparty partnered with the popular trading card game Force of Will to launch collectible cards on the platform.

2016 was considered the birth of crypto art. rare pepe walletWith the launch of , creators around the world started selling their digital art. The rest is history. In 2017, CryptoPunks launched as his ERC721/ERC20 hybrid token on Ethereum. OpenSea was founded. CryptoKitties has started. and so on. Suddenly, digital collectibles are as valuable as trading cards and physical artwork.

Interestingly, the vision of NFTs was born long before digital art. Bitcoin’s first “color coins” from 2012-2013 had a much wider range of uses, from precious metals to automobiles, stocks, and digital collectibles. Of course, that vision he didn’t realize in 2012. For NFT, that hook was digital art.

The same thing played out in the Metaverse – Neil Stevenson’s snow crash, Published in 1992.

But digital art is just the beginning.NFT can now tokenize The new asset class and the original vision of colored coins are finally revealed.

How Digitization Underlies NFTs

Digital has become synonymous with cost-free production and delivery, especially since the exponential improvement of internet technology and services post-pandemic. Social media,Email, AI generated art — all seem to be free. Due to its reproducibility, transferability, and low barriers to entry, the Internet contains an immense amount of digital content.

The problem is that it is often no longer possible to distinguish between the creators, owners and distributors of these digital items. As you may remember from Economics 101, markets cannot exist without property rights. As NFT skeptics say, “Can’t you copy and paste NFTs for free?” Like, you can’t take ownership of an image by copying it, but that doesn’t mean it’s yours.

As such, NFTs can be viewed as a broadly applicable framework for securing ownership of digital assets through distributed ledger technology (DLT), providing a means to contain the flow of value amidst the turmoil of the Internet. It will be a new ship.

And, of course, there are value streams in digital.my point of view as digital native Generation Z may not be like everyone here, but know that most of us work, socialize, shop, have fun, and invest as much in our digital environment as we do our physical environment. I know that.

tokenization

We may argue that we have already paid over the internet. Don’t they have value that can be effectively captured? Why do we need NFTs?

But think about buying on the Internet. Nearly all of them occur through organizations—netflixAmazon, Google, metaSuch. NFTs, on the other hand, have allowed digital assets to have a direct and independent value without the need for bundling by these big companies. Unbundled, it works across organizations and borders. NFTs can be traded peer-to-peer without paying an intermediary, using data records immutably stored on the blockchain.

Extended use case

Besides asset transfers, NFTs also offer new vectors for various other aspects of business. Loyalty program, membership passnew revenue models, shareholder schemes for artists and projects (not just companies), governance Digital-first communities, digitizing critical documents, and more.

Overall, NFTs bring more legitimacy to the digital world. For better or worse, the direction of history is clear, and human life will continue to merge with technology. As you move forward, especially as you enter the metaverse, it’s important to have the right tools.


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