He is 2021. Super Bowl champion Tom Brady founds NFT, Christie is explain CryptoPunks for everyone, Saturday Night Live is creation NFT jams Beeple and Mark Kubánec They are advocating a case of using the NFT – yet I’m here, the CEO of a company that helps users securely store their broken tokens, and I still think we need to decide on the true value of the NFT.
It is important to back up and remember that even though we all seem to have always known about NFT, the opposite is true. Until this year, NFTs were not just a new idea that would never be a story about cable news, but their use case was still being processed in the blockchain industry. Although the recent hype has been amusing, I believe that this current iteration of the NFT is far from a revolutionary game-changing potential that can truly unlock for all industries.
What makes NFT different from bitcoins
NFT differs from all other use cases of cryptocurrencies. Bitcoin (BTC) is considered a replaceable supply of value, and blockchains such as Ethereum, Cardano and Polkadot help developers unlock the tool through the blockchain for various DeFi projects. The NFT, on the other hand, is a uniquely generated token that uses the Ethereum blockchain to represent ownership of a digital asset in a way that is unchanged over time.
With everyone from retired professional wrestler Undertaker to Lindsay Lohan pushing their own NFT to take advantage of this trend, it’s so much more like the hype of Ty Beanie Babies than revolutionary technology. Once the trend calms down or the bubble bursts, all you have left is a title deed that has no value, which begs the question: Why not just right-click and “save as” and make a copy without spending $ 69 million?
This first form should not be final
I’m joking about the current state of the NFT, but I’m extremely excited to think about what the NFT will develop into in the next decade. The function of a fixed record of ownership or agreement stamped on a blockchain has such a rich potential to affect so many industries. The most interesting use cases beyond the current iteration of the NFT include:
- Property: Imagine the near future when you go to buy a house, and instead of the tedious process of paperwork and communication back and forth with the bank, you can simplify this process by exchanging ERC-721 (a standard Ethereum-based NFT token) from the original owner to you.
- Licenses and records: Opening bank accounts, renting an apartment, transferring ownership of a car or trying to buy cold medicine at a local drugstore – all of these things require tangible verification through ID and verified papers. What if you could have your licenses and records verified on a blockchain like NFT instead?
- Tangible goods: Even further in the future, the NFT could help us gain ownership of tangible goods and give power back through verifiable ownership to people who are victims of theft. Imagine that someone stole your bike or a precious piece of jewelry handed over to your family. If you can link ownership of these things to the NFT on the blockchain, you cannot deny the true owner of the item.
This year as well The Oscars go to the NFT. That’s not even half of the use cases, and right now, copyrights for entertainment, game assets and more are being developed at DeFi.
After all, NFTs are fun and a fundamentally good idea. However, if money and status are the two most important factors influencing the value of something, the industry must take a deep breath and avoid distracting people from innovation before real revolutionary use cases become available. Right now, people are willing Buy $ 500,000 mem, and even though I think they lack the real value that the NFT can offer, I just hope that people will stick to find out what the NFT can really do.
This article does not contain investment advice or recommendations. Every investment and business movement involves risk, and readers should conduct their own research when making decisions.
The views, ideas and opinions expressed herein are by the author only and do not necessarily reflect the views and opinions of Cointelegraph.
Kosala Hemachandra is the founder of the untied wallet MyEtherWallet (MEW). Since 2015, MEW has been the leading wallet interface for the Ethereum blockchain. Today, MEW provides convenient and safe access to the entire Ethereum ecosystem, including DApps, DeFi and more.