What is the future of NFT?

With the fire of the meta-universe, the spring of NFT also came.

2021 is the year of NFT. Since 2021, the global NFT art, sports and games market has seen a steady increase in transaction volume.

In the collectible world, the digital scarcity that NFT brings is well suited to collectibles or assets whose value depends on limited supply. Some of the earliest NFT use cases include Crypto Kitties and Crypto Punks. A single Crypto Punk NFT like Covid Alien sold for $11.75 million. In 2021, popular brands such as NBA TopShot are also creating collections based on NFT, which contain video highlights from NBA games rather than still images.

In the field of art, NFT's indivisible, irreplaceable and unique nature means that once a digital work is cast into NFT, it becomes a unique digital asset on the blockchain. In simple terms, the idea is to give the work a unique identification number, prove its authenticity, trace its ownership and, like other rare works of art, be able to be exchanged, traded or held. NFT is a combination of scarcity and collection, but also a kind of identity identification.

In games, NFT also provides significant opportunities for games due to the ownership opportunities introduced by NFT. While billions of dollars are spent on digital game assets, such as fortnite skins or clothing, consumers don't necessarily own those assets. NFT will allow players who play cryptographic-based games to own assets, earn assets in the game, port them out of the game, and sell assets elsewhere (such as in open markets).

NFT's bright prospects have attracted capital and continued to promote it. Among them, OpenSea rapidly dominates the market share of NFT exchanges by taking advantage of its advantages of NFT users and NFT asset types. In August 2021, OpenSea's NFT transactions exceeded $1 billion, accounting for 98.3% of global NFT transactions. For comparison, OpenSea did less than $20 million in transactions in all of 2020.

Indeed, NFT has attracted investors because it is profitable: it is the economic underpinning of the metasverse, which is supposed to be the ultimate form of the Internet, that has become so popular this year.

NFT could be the embodiment of metaverse rights, allowing humans to create a true parallel universe in a blockchain world. Just like physical keys, programs can confirm user permissions by identifying NFT, which can also become tokens for information world authentication.

NFT's future looks bright. But opportunities often coexist with challenges, and new chaos ensues. On the one hand, where there is a market, there is a transaction, and there is inevitably the possibility of speculation. On the premise that virtual assets can be traded freely, the trading parties should be on guard against unreasonable trading behaviors and should not participate in speculation behaviors, so as to guard against large bubbles in the virtual asset trading market. It seems to be an immutable rule that opportunities are accompanied by challenges. Therefore, facing the new NFT, cautious optimism and rational development are the best policies.