4. Future applications of NFTs
There is huge potential for NFT technology to be applied in the copyright and intellectual property space as well as ticketing and the sale of video games, music and movies. Further applications could include certification, software licensing and warranties to name but a few.
There has also been some noise recently around the potential of a Global Token Exchange which will allow investors to buy and sell security tokens linked to any digital or real-world asset, opening up a massive potential investment market. Non-fungible tokens open the door to the creation of security tokens, ensuring that ownership or fractional ownership of any asset is completely traceable and clear.
Most importantly, NFTs are expected to become key components of the Metaverse…
What exactly is the metaverse?
The Metaverse is the digital parallel and extension of the real world. It is a virtual realm where communication, gaming, personal profiles, commerce and NFTs are all components of a larger online experience. It represents the sum of all processes that power the emerging Web3. It is expected that a massive parallel economy is going to be created, where digital real estate becomes just as valuable as brick and mortar.
Blockchain gaming has already created a strong potential link between NFTs and the metaverse, as virtual gaming worlds are created with NFTs being the key to owning digital avatars and essential items to participate in these worlds.
It is expected that the metaverse will revolutionise social media by creating augmented experiences and platforms for connecting in virtual spaces. NFTs are expected to play a significant role in this space. It is no wonder that Facebook has changed its name to Meta in anticipation of this paradigm shift.
Metaverse platforms such as Decentraland and The Sandbox are already selling plots of virtual land as NFTs, with the next logical step being to enable users to move virtual items between different metaverse platforms.
The possibilities are endless but the key takeout is that the Metaverse is the next dominant technology to shape our future experience and NFTs are going to play a vital role.