How The Non-Fungible Token (NFT) is Leading Us into a New Age

NFTs Breaking Barriers and Records in the Digital World

The Growth of NFTs

As more and more people around the world learn of the potential earning power and collectibility of NFTs, the market has begun to catch up to other sections of the art industry. According to NFT stats compiled by blockchain analytics firm Chainalysis Inc., the NFT marketplace grew to almost $41 billion in 2021, closing in on conventional art sales. In 2020, conventional art and antique sales amounted to a total of $50 billion. The closing gap can be explained by the growing popularity of NFTs and auction house closures during the COVID-19 pandemic. In April and May alone, more than 30,000 unique wallets bought NFTs from popular marketplaces such as Nonfungible.com. Notably, the number of wallets trading in NFTs expanded considerably in 2021, from roughly 545,000 in 2020 to around 28.6 million in 2021.

Big names in the NFT Space

NFT Integration into Gaming and Social Media

In almost all previous models of online game communities, items that could be purchased were limited to use in that game via a single account. If a gamer’s account got stolen, disabled, or even if the user just became bored and moved on to another game, all the money they spent would disappear; it’s a reality many gamers have come to accept. This model has continued because there was no viable alternative — that is, until NFTs came along and changed everything. Many believe that this technology trend will change how games are played by providing players with ownership of their in-game assets. Most NFT owners believe that displaying the NFT they purchased on social media adds value to their holdings. Thus, providing crypto-compatible social media companies the chance to reach and retain new NFT-oriented customers. Additionally, the social media companies with the most influence in the NFT space can impact the development of Web 3.0 since this iteration of the web revolves around the concept of storing user data on blockchains.

How do NFTs reach countries that do not have financial inclusion or access to banks?

It’s easy to assume that with the world’s digital financial services advancements that everyone today has a bank account. But this is far from the truth. For many people in the developed world, opening a bank account is part of growing up. Unfortunately, a significant part of the world population doesn’t have any form of financial services. They also don’t have access to a physical branch to take advantage of banking services. For these individuals who are unbanked, this means utilizing other forms of financial services. These can range from check-cashing outlets, money orders, or even payday lenders, amongst other less reputable means to handle their money.

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