What You Need to Know About NFTs as We Enter 2023
NFTs made it big time in 2021, when the sector became a multi-billion-dollar powerhouse. However, during the first half of 2022, everything changed and the value of NFTs came crashing down – alongside the wider crypto market. Many financial experts believed this spells the end for NFTs. However, if you listen to chatter within the blockchain space, you’ll find talk about NFT trading numbers increasing and the crash coinciding with utility improvements – continue reading to find out more.
Image by Pete Linforth from Pixabay
Why Are NFTs So Special?
Non-fungible tokens (NFTs) are a unique technology with the power to make the business world run smoother and more secure. For example, NFTs leverage smart contracts, which is technology operating over blockchain (decentralized ledger tech). The infrastructure means that transactions can complete within seconds, and there’s no way of altering data changes.
NFTs and Gaming
If you follow any type of nft news, you will have seen plenty of discussions about NFT gaming. These games utilize NFTs to allow players full ownership of in-game assets. Although the landscape had a rocky start with the look and feel of Axie Infinity, developers are realizing the need to create realistic NFT games – to mimic current wider gaming trends.
The value of NFTs may be dropping, but there are still plenty of new and exciting projects emerging as 2022 comes to a close. For example, RobotEra promises to be a truly popular NFT game.
Digital Art of NFTs
Digital art is the use case typically associated with NFTs, and it’s still relevant today. When digital artists create media and try to sell it, sourcing a buyer is difficult and proving ownership of a digital image is challenging. However, by embedding smart contracts into digital media and selling them through blockchain marketplaces, the original creator and all transaction details are recorded forever. Every time an NFT changes hands, the artist receives royalties, which is great news.
NFTs In Web 3.0
Digital art is only the very tip of the iceberg when it comes to NFTs. The technology behind NFTs paves the way for Web 3.0 development, which is all about decentralization. If you’ve explored decentralized apps (Dapps), you’ve engaged with Web 3.0. There’s a never-ending stream of new Dapp projects being supported by various blockchains, and this is unlikely to slow down as we move into 2023.
Other Areas Influencing NFT Future Value
The application of NFTs goes far deeper than we can contain in this article, but here are a few to get your going:
- Community and culture. People want functionality from NFTs, and this demand will sway the market.
- Interoperability. Blockchains aren’t designed for wide community demand – interoperability will have a say in the market value.
- Simpler adoption. General public like easy tech – NFT solutions need to become more straightforward.
Conclusion
The value of NFTs may have declined, but there’s still plenty of growth taking place. When we move into 2023, NFTs are likely to serve a purpose and have more physical value to them. However, nobody can say for certain at this point.
