Non-Fungible Tokens (NFTs) are digital crypto-assets representing a unique asset or good. These tokens are usually ERC-721 or ERC-20 tokens on the Ethereum blockchain. This post will explore four aspects of NFT trends in 2022, including what NFTs are and how they work, who is interested in them, four popular categories of non-fungible goods, and current examples from each group. Non-fungible tokens (NFTs) are a new form of blockchain technology that allows for tracking unique items that cannot easily be exchanged with one another.
1. NFTs are Transforming play-to-earn gaming
Online gaming is a vast industry. According to Newzoo research, the e-gaming market increases by 24% yearly. Non-fungible tokens (NFTs) are being used to represent virtual goods in games, particularly game items. These game items are usually scarce, collectible, and tradable. Examples of play-to-earn games leveraging NFTs are:
- Axie Infinity
Among games, that managed to be a rage and caught on in numerous developing and cash-strapped countries is Axie Infinity.
2. NFTs as digital art collectibles
NFTs accredit their owner as the sole owner of their digital assets, and therefore one can use them to transfer or sell ownership. This makes them incredibly useful for creating digital art and collectibles. Some of the top companies in the blockchain and gaming industry are working on projects to connect blockchain tokens with physical collectible items.
It becomes much easier for cryptocurrency users where they can now purchase non-fungible tokens with Bitcoin or other altcoins instead of using traditional payment methods that often get expensive over time or require KYC approval.
3. NFTs as alternative subscription models
NFTs have introduced a new and potentially better way for consumers to access games. These subscription models disregard the return-making intermediaries. There is no need for a micro-transaction system, monthly fees, or other limitations. For instance, Time magazine, based in the US, tossed TIMEPieces, a new initiative offering NFTs from forty artists as a substitute for Times digital subscription.
4. NFTs as fundraising opportunities for charities
NFTs have been utilized by initiatives to help children in need. Additionally, NFTs are being used to support a wide range of charitable organizations and endeavours. Some of these initiatives are:
TrueBit Trust is a charity that raised over $240 million in donations through the issuance of NFTs.
NEO Charity Fund sets out to use NFTs to support The Red Cross relief efforts.
BitGive Foundation allows its contributors to create and donate public and private unlocks, subsequently used to fund charitable causes.
NFTs are the new era of ERC20 tokens that can be used to represent and transfer ownership over digital assets. These tokens are being bundled up in various ways to meet the needs of different clients. They have given rise to innovative fundraising and game subscription models and have also managed to bring ease into the art and collectibles space. These NFT trends will continue for years and will undoubtedly change how we think about digital assets for a long time to come.