06/05/2022 After a crash, what comes next for NFTs?

Short-term problems

Before unpacking what a version of that next arc may look like, it's helpful to understand the near-term needs of NFT projects.

Escape the crypto cult.Early NFT projects found success by catering to a small cadre of crypto-obsessed evangelists. But broader NFT adoption is only possible by expanding the pool of users to those less crypto-savvy.OpenSea, an NFT marketplace, is doing this with its acquisition of Dharma Labs in January, which will help new users more comfortably use traditional fiat currency rather than crypto to purchase NFTs.

Provide novel value.What can you do with an NFT? At present, not much. Utility will be the watchword of the second phase of NFT development. A maturing blockchain ecosystem should allow NFT holders a value proposition beyond the aesthetic. NFTs should integrate with existing applications in contexts such as messaging, payments, and gaming. NFTs could enable access to unique experiences or perks for ownership, among many potential applications.

Improve infrastructure.As laid out above, the promise of utility relies largely on more complete and capable infrastructure. Layer 1 blockchains such as Solana and Flow offer far better transaction speeds over ethereum. The next major challenge is interoperability, which can be accomplished by the dominance of a single chain or expanded cross-chain solutions. As interoperability grows, so too must cybersecurity safeguards to ward off the growing number of bridge attacks on these solutions.

The end of the beginning for NFTs: A theoretical case study

Such obstacles are by no means intractable. What is needed to push innovation further is a more clearly defined use case with a highly motivated and well-capitalized stakeholder to help drive forward progress. To this end, the sporting world offers a lens into a potential future for NFTs.

Sports fans around the world are characterized by passion for their team, an eagerness to engage in the community, and a willingness to spend on merchandise. Sporting teams and leagues, in turn, are always looking for compelling ways to engage with and monetize their fan base.

Sporting leagues worldwide are working hard to update their digital strategies in a saturated media environment. Such efforts can have huge payoffs: Following the release of Drive to Survive, a Netflix docu-series on F1 racing, ESPN saw a 41% year-over-year increase in viewership.

Outside of ticket sales, merchandise is the fundamental way that teams extract value from fans in a way that gives fans a way to demonstrate their loyalty. NFTs can support more sophisticated digital engagement between teams and fans, reinforcing traditional channels of monetization such as merchandise and ticket sales, and opening up entirely novel use cases such as metaverse partnerships and collectible trading. Startups are already emerging to pursue the sports memorabilia opportunity, such asAutograph, which counts Tom Brady among founders and achieved a $3 billion valuation following a $170 million early stage round in January.

Beyond memorabilia, NFTs have the potential to open the door to a broad range of digital experiences. For instance, imagine a Chelsea fan who attended the 2021 Champions League Final against Manchester City. While the memory of victory may always be present, the importance of that event—both from a sentimental and a revenue-generating perspective—begins to fade after the final whistle blows.

However, an NFT-enabled ticket could provide ongoing opportunities across digital realms such asFortniteor Roblox, where an avatar could utilize unique digital assets connected to the NFT, say a Chelsea jersey, to earn discounts on merchandise or other experiences. NFTs could also connect to unique digital trading cards that enable access to unique sports-related gaming opportunities.



Interesting NFTs
Brave Samurai
This is the second collaborative piece that I have created with the very talented Dutch artist, @eattheart23. Here, a samurai warrior stands guard, honour bound to protect his master even to the death.
Mars House
Mars House is the first NFT digital house in the world. Upon purchase of Mars House NFT, 3D files will be sent to the new owner by Krista Kim Studio Inc. for file upload to the owner’s Metaverse. Technical support for Mars House integration on Metaverse is provided. (Architectural Digest, March 14, 2021) “Kim ventured into NFTs while exploring meditative design during quarantine; her hope was to use the influx of digital life as an opportunity to promote wellbeing. Comprised entirely of light, the visual effects of her crypto-home are meant to omit a zen, healing atmosphere. The artist also partnered with musician Jeff Schroeder of The Smashing Pumpkins to create a calming musical accompaniment. So what makes the file a compelling purchase? Beyond the promise of buying into the lucrative NFT market, the home and all of the furniture in it can be built in real life by glass furniture-makers in Italy, as well as through MicroLED screen technology. Kim also has a strong visions the art being projected, as well. “Everyone should install an LED wall in their house for NFT art.” says the artist. “ This is the future, and Mars House demonstrates the beauty of that possibility.” The owner is in agreement to the following terms and conditions upon purchase of Mars House (hereby referred to as Mars House NFT): The collector agrees to own one copy of Mars House NFT on a single Metaverse platform. The collector is required to register Mars House NFT ownership with Krista Kim Studio Inc. Krista Kim Studio Inc. will provide technical support to upload and integrate Mars House NFT on a Metaverse platform. If/when Mars House is resold, the collector is required to delete all Mars House NFT 3D file(s) from his/her Metaverse, and provide verification of deletion to Krista Kim Studio Inc. before new 3D files are transferred to the new owner by the artist. The new owner is required to register Mars House NFT ownership with Krista Kim Studio Inc. Krista Kim Studio will send Mars House NFT 3D files directly to the new owner and provide support for Metaverse integration. This verified ownership transfer system will be appointed to Krista Kim Studio Inc. trusteeship, after 40 years of the date of the sale. Krista Kim Studio Inc. retains ownership of Mars House NFT copyright. All rights reserved. All reproductions of Mars House (NFT) in both digital and physical formats, are restricted. Mars House NFT physical furniture pieces, made of tempered printed glass in Italy, may be commissioned by the collector as NFT physical pieces.
David vs the Virus
"An ode to the year everything changed" - Frank Wilder The story of the underdog is a reoccurring theme throughout history, and perhaps the most famous example is that of David vs Goliath. A tale about perseverance, in which David takes on and defeats the giant warrior using only his smarts and a stone. Famously depicted by Michelangelo's David statue. Fast forward to the present day in 2020 and we as humanity are faced with our own Goliath. An uncontrollable pandemic spread around the globe. Now with the entire planet being affected by this we understand the gravity of the situation at hand, whether it be a virus we’re fighting or other forces at play, there is indeed an energy out to shift the balance of the Universe… Regardless of our differences, in this moment must unite as one. With diligence, trust and belief we as a whole can come together to triumph against "the enemy". Stay vigilant my friends. Original score created by the one and only Phoenix Wilder.
Elizabeth Taylor
Shalom! I'm Elizabeth Taylor. In high school, I was voted school jock. My friends describe me as "despicable." It's... accurate. Our friendship will be smelly, gorgeous, and full of apple pie.
By OthersideDeployer