Looking back at 2022, one may be forgiven for thinking that NFTs may be in a bit of a slump. Interest in Profile Picture (PFP) collections slowly began to wane. A subsequent drop in engagement and returns was to be expected as a result. However, this does not mean that blockchain and NFTs are to be written off! The decline of PFPs and content-based NFTs simply accelerated other unique and innovative use cases.
These new trends are a key indicator of where blockchain and NFTs stand in 2023. They are proof that the blockchain industry continues to grow, and that NFTs are going to fuel a significant part of that progress. So what does the future hold for blockchain and NFTs?
How Can Blockchain and NFTs Continue to Grow?
A variety of sectors have seen effective uses of NFTs and decentralized blockchains. Each of these demonstrates their utility and potential for further improvement. Let us dive into a few instances of NFTs changing the way things are done.
It is safe to say that the entertainment industry has made great strides in leveraging the functionality of NFTs. NFT ticketing is a gamechanger for event organizers, artists and audiences alike. By tying one’s ticket to an NFT, audiences are able to seamlessly attend events either in-person or virtually.
Moreover, tracking attendance of participants becomes easy and efficient. With a decentralized blockchain governing data collection, event companies can analyze important metrics and potentially improve their businesses. A new Proof of Attendance Protocol (PoAP) allows organizers and artists to engage with audiences who may not be as tech-savvy. Attendees who purchased a traditional ticket simply have to enter a password or scan a QR code to get the same benefits as NFT ticket holders.
Artists can engage with their fans by tying exclusive rewards and merchandise to NFT sales while also earning royalties on the resale of their NFTs. Blockchain and NFTs have certainly changed the way their users engage with digital content – and they show no sign of slowing down!
Digital art continues to create new avenues for monetizing unique content. For instance, the metaverse is now home to NFT auctions, digital art galleries and so much more. A thriving community of enthusiasts continues to contribute towards improving engagement – and the potential returns from trading in digital art.
Recently, AI-generated art is beginning to gain a lot of traction with tools like DALL-E and ChatGPT creating artwork that stands out. The debate around ownership of such content is also underway. It is clear that AI-generated art is here to stay, and is sure to open up new opportunities for artists to create and monetize content.
- Cloud Integration and Data Management:
NFTs’ inherent compatibility with Smart Contracts can help with data management and record keeping in a variety of industries such as healthcare, real-estate, banking and game development. By integrating AI and the metaverse with NFTs, managing documentation, personnel records, financial data and even coding projects becomes a breeze!
What’s more, NFTs can act as personal identification as well! With Soul Bound Tokens (SBTs), an individual’s identity can be coded to an NFT, making it an access card to their organization or other venues where access is restricted. When coupled with significant advantages to data security, it is clear that NFTs have a lot of potential for organizations both big and small.
The Potential for Progress:
Blockchain and NFTs are set to create many more innovative use cases as their functionality improves. The road ahead is bright – and full of potential!
The article has been written by Vijay Pravin Maharajan, founder and CEO, bitsCrunch
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