JThe digital asset ecosystem has reshaped the dynamic understanding of art trading, buying and reselling as the rise of blockchain technology and cryptocurrency has seen increasing popularity in recent years.
With growing interest, non-fungible tokens (NFTs) have found themselves front and center, echoing a new phase in the evolution of the web and the internet.
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Although with the premise of Web 3.0, metaverse and related software developments, some NFT marketplaces such as Axie Marketplace, Rarible, RealCollection and SuperRare among others are somewhat overlooked by retail marketers with the industry losing out on view what these specific platforms can do. for the future of technological innovation.
The latest statistics revealed that NFT trading volume was over $24.9 billion in 2021, up from $95 million in 2020. Over 2.7 million active wallets were registered last year, and already in January 2022, OpenSea, the largest NFT market in the world. , reported more than $4.8 billion in sales in the first month of the year.
Digital assets and collectibles in the NFT marketplace have gained staggering support in recent years, totaling over $40 billion in sales in 2021, according to a Bloomberg report.
As the market for non-fungible tokens continues to grow, with collectibles being minted on popular blockchain-based digital platforms, forecasts currently indicate that the industry is poised to overtake the market. traditional art and collectibles in the coming years as the industry suffered a whirlwind. during the pandemic in 2020.
With an estimated $10-20 million worth of NFTs being sold and traded each week, companies are adapting to growing demand, seeking to establish dominance among first-generation blockchain technology developers.
Even with the growing popularity, major blockchain giants such as Block Inc (NYSE:SQ) and Coinbase Global Inc (NASDAQ:COIN) have shown how powerful the NFT ecosystem has become in such a short time.
Digital assets in terms of monetary value are perhaps among the few influences that the market exerts. When we take the cover off, we are faced with a complex industry made up of innovative software and technologies that are revolutionizing everything from healthcare to telecommunications and cybersecurity.
NFT platforms have become known as a virtual digital art showroom in its most basic form, but all that is changing.
With demand from retail traders and investors seeing an increasing number of new NFT platforms come to life, developers and software engineers are reshaping the way we conduct online communication, transact and browse the internet.
Looking deeper, we see how NFT platforms have led developers to discover new forms of commercial-grade technology and software. Over time, perhaps we can expect these tools and features to be spread more across various industries and industry-related platforms instead of just being used to transact and protect digital assets.
- Improve online security
The transition to the digital workplace has forced millions of workers and employers to rethink and restructure their business models. With that came the era of digital and remote work, as the pandemic launched a generation of digital nomads working from anywhere in the world.
Even with easier access to information and remote communication, the digital world is not perfect. Online safety protocols have changed a lot since the start of the pandemic.
The increase in cyber threats and ransomware attacks has ushered in a new era of online security features that allow users and businesses to better protect their data, information, and transaction information.
While digital artwork and commerce remain key to many NFT platforms, security has recently become a top priority for businesses looking to curb the growing threat of cyberattacks and hacking.
“We are in the ideal space to develop the security and reliability of large original data, in particular intellectual property rights, digital art or biometric data. Blockchain technology offers decentralized data encryption, and in real-world scenarios, such as RealCollection, we are already seeing a solution-based approach that offers Identity Data Hub (IDH) storage/sharing protocols. shares Lee Jung Ryun, CEO of IBCT, the development company for the LEDGIS platform.
The growing network of users and buyers has driven NFT platforms and blockchain-based technology companies to develop end-to-end encryption features that will improve security protocols and facilitate storage and sharing solutions. network-based.
For security reasons, some companies use a decentralized identifier or DID, and Identity Data Hub security helps improve loss prevention and provides better copyright protection for artists. More so, the use of end-to-end encryption in various networks enables the use of blockchain-connected Secure DB, IPFS, and Cloud networks.
User-centric technology gives users access to better NFT processing, an ecosystem of block producers, valuable access to cross-blockchain communication, and a reward system that pays based on the number of blocks. token purchases.
In January 2022, a cyberattack on the notorious NFT marketplace, OpenSea, saw over $1 million worth of digital assets stolen. Hackers were able to circumvent a security flaw unknown to OpenSea developers.
The efforts of blockchain developers have led to the facilitation of more decentralized data encryption, an environment in which one will be able to easily manage and control personal data.
With the emergence of Web 3.0, companies place a strong emphasis on improving security protocols which must be regularly updated and maintained. Thanks to these efforts, it is not only NFT enthusiasts who will benefit from enhanced security features, but also the everyday online user.
- The virtual world is now more likely
In 2021, almost everyone on the internet was reading something related to the Metaverse. While at the time it seemed like this idea of a high-tech virtual world was still a long way off, it came to life much faster than one might have thought.
From the metaverse, digital assets such as NFTs, tokens, coins, and other cryptocurrencies, a whole new world of ingenuity awaits.
To better combine these efforts, some NFT marketplaces feature 3D objects of contemporary digital coins in the metaverse. Work on these bold projects integrates artists, designers, and developers from different industries to combine their efforts, creating a digital gallery accessible to everyone on the metaverse.
NFT markets are a percentage that makes up the metaverse, but it creates new opportunities for individuals, artists, and high-end brands.
Using the metaverse in its current capacity is an opportunity for NFT platforms to set up a virtual secondary market, allowing NFT users and collectors to resell previously purchased coins, connect with other users, and explore the potentials of the virtual world.
Ongoing efforts will help companies tap into new markets of potential customers, helping them establish their presence as the market becomes more mainstream.
There is, of course, still a lot to understand about the Metaverse, with the development of VFX and VR/AR experiences still in their infancy. Currently, NFT platforms are focusing more on providing a wealth of next-generation NFT collectibles to users, as the market demand has been steadily increasing.
- The premise of digital currency
Yes, digital currency is now bigger than ever and the current crypto market cap is worth over $1.7 trillion. To put that into perspective, that’s about the same as Canada’s gross domestic product (GDP) in 2020 according to the World Bank.
Crypto has become an important part of our financial and economic infrastructure, and removing it from the system will have disastrous effects that will be felt for decades. So, while their influence is only growing in importance, the creation of alternative coins and tokens can be used to trade and buy NFTs in the digital ecosystem.
More so, digital coins or currencies are not only used for the purchase of certain NFTs. This helps make digital transactions safer, more secure and more streamlined, seeking to work in a variety of industries including healthcare, retail, hospitality and tourism, among others.
While it may offer greater decentralization for those with greater autonomy, it is not entirely without risk, a worrying factor that is not yet resolved. Digital coins are transforming the world of online payments and remittances, being more decentralized, adding to the benefits of autonomous transactions.
Although we may be fascinated by the promises the digital world can bring, we should consider how software and technology are now more interchangeable than we could have imagined. There is more to the world of virtual showrooms and digital NFTs. It’s about creating solution-based innovation that will revolutionize the digital age.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.