The concept of ownership and authenticity are core needs that everyone looks out for in exploring new products. Various brands have picked up on this and continuously try to integrate these concepts into their projects. This is what Blockchain easily presents to art creators and collectors through NFTs, and with every passing second that creators come to this realization, the longevity of the market is cemented.
NFTs change the value proposition for creators in a lot of ways even as it simplifies the social structure between consumers and creators. For example, instead of engaging the help of galleries, publishers, or record labels to monetize creative art pieces, artists can directly connect to buyers and benefit largely from the total pie while the authenticity of their work is preserved.
Another huge factor that spells out the successful future of NFTs is its emergence as a powerful branding and marketing tool helping to expand the customer base of diverse brands by allowing their consumers to own a piece of the brand's NFT. Brands like Coachella, Adidas, Super Bowl, and Dolce & Gabbana use NFTs in innovative ways to achieve scale lead generation in their campaigns and allow unique experiences for their customers.
After a two-year hiatus due to the Lockdown and Pandemic, Coachella found a new, exciting way to connect with its customers by featuring NFTs. Now, this is a music festival which has built a remarkable brand name over the years from thrilling its audience with excellent performances from artists across the globe. But this year, it followed a strategic branding approach to establish a healthier brand-customer relationship by offering all paying participants an NFT digital image of a flower that bloomed with rarity on the two Fridays of the festival. There's no telling that this will solidify the presence of NFTs and increase its reach across regions.
By the third quarter of 2021, the NFT market had reached $10.7B in trading volume, gaining by over 700% from the first quarter. The growth of NFTs has now transcended the period in which they could only be created and sold by celebrities for millions. Toshendra Sharma, CEO and founder of polygon-backed NFT marketplace, NFTically, says, “NFTs are slowly but surely becoming a part of our everyday lives. Not only are NFTs a great business opportunity, but they are also a new way for people to enjoy themselves while making money. That’s why NFTs are here to stay.”
In the past, we could not differentiate the owners of digital artworks from someone who saved a copy of the art from the internet. The lack of clarity of property rights for markets to operate was a problem. But NFTs created an avenue with which creators and consumers can solve this problem by giving them something they can agree represents ownership. This indulges the possibility of building markets around new types of processes which include purchasing products that could never be sold before and allowing more efficient and valuable transactions to hold in dynamic ways.
Finally, as the world embraces the Metaverse, there are very low chances that NFTs would leave anytime. One of the biggest features of the metaverse is a virtual reality where everyone can create a virtual version of themselves— Avatars. Avatars enable people to participate in games, music festivals, or attend sporting events and concerts. Just like they can in real life. We’ve primarily seen NFTs used for buying and selling digital art, but they can be connected to and represent anything. Avatars in the Metaverse will be NFTs. The ownership of an NFT will be used to represent the existence of a person in the virtual realm.
