NFT art will never become a mass market-NFT license may be

Visa created a beautiful new Twitter avatar for itself in August of this year. Although it did not stay for long, this 8-bit style photo is still dozens of headlines.It’s not just about the relatively heavier List price of $150,000The fact that the financial giant bought non-fungible tokens (NFT) representing images from the CryptoPunks collection caused a sensation in the media. This is the best marketing expenditure Visa has made throughout the year-news articles alone must have a return on investment of ten times that of purchases.

Yes even Today, Visa is “imitating” on NFT, With an expression that NFT collectors have fallen a lot in the era of the rich pouring Millions of orangutans JPEG. But even if this technology’s journey from meme to wealth has brought it into the world of digital art, I don’t think it will become its mass market use case.

Until now, everyone knows that NFT essentially brings uniqueness and scarcity (features related to traditional high art) into all shapes and forms of digital art, otherwise it can be copied infinitely through good old copy and paste. As part of the transaction, a link to a specific picture, audio clip or video is sent to the blockchain, and we are there-even though the file can still be copied and pasted, only one wallet owns its tokens. This is where it became fashionable: Wearing an NFT image as a Twitter avatar is like wearing a Rolex watch with your name engraved on it. This is a status symbol, worthy of appreciation by insiders.

In other words, high art and luxury goods are defined as contrary to the mass market, because high prices and uniqueness are their main selling points. Bleeding people can buy millions of links, but that’s because they might as well burn money to play. They want to show off their wealth to the world. However, good luck and charge ordinary Joe a $150,000 picture link fee. By definition, treating NFTs as the focal point of art limits a promising technology to a relatively small, albeit undisputed, luxurious and quirky niche market.

The good news is that large-scale NFT digital art sales are making headlines, which helps bring NFT into the mainstream. However, this will not be the main purpose of NFT in the future, but a new and expensive plaything for the rich and some particularly avid crypto figures and communities.

Real deal

First of all, NFTs already have a mass market use case-they are very comfortable in the game, and CryptoKitties collected a lot of headlines during the day. From Axie Infinity to all newer games, NFTs are powering the massive digital economy, and there they bring more than pure uniqueness.

Yes, I’m glad that your NFT sword is unique and has your name on its token, but what’s better is that it can swing the decapitated dragon at once, unlike any other non-unique weapons. People are willing to pay for beheaded reptiles. Fortnite, a free game, bring Its publisher’s in-game cosmetics sales in 2020 is $5.1 billion, and gamers are already paying for non-unique weapons, mounts, castles, and spaceships in dozens of other games. NFT is just the next step in this direction.Believe it or not, in some developing countries, NFT games have Become An effective source of income.

What also seems promising is the idea of ??using NFTs in the corporate world as part of traditional business processes. If NFT cannot become the new default way of doing things, the areas where NFT may shine are not as sexy as high-end luxury goods. However, they will greatly benefit from the key feature brought by NFT: the ability to confirm the authenticity of related digital assets. For example, this can be as simple as a hash of a financial document saved as an NFT on a private or public blockchain to check whether it has been tampered with.

Software licensing and authentication seem to be one of the areas of NFT shine, If there is enough time, there may be interoperability benefits. Both companies and individuals can purchase licensed software on one platform and rent it out as needed. This will reduce costs and at the same time give CIOs peace of mind, because they know that any digital asset can be authenticated safely and quickly, so they have an extra layer of security.

related: Irreplaceable tokens: a new paradigm for intellectual property assets?

Those who are my age remember to buy a copy of Windows or Adobe CS3 and put a sticker with a serial number on the back of the box. Throw away the box, that’s it. This has been replaced by SaaS logins that store your serial number or platforms such as Steam and Apple’s App Store, which save your digital assets-unless, of course, Apple decides that it does not have a “Goonies HD” rights store, just Delete your purchase. did you buy it? that’s terrible. If the platform is shut down, or the company believes that you have violated their 2,000-page terms of service in some way, the same is true for the terms of service you agreed to without reading through. The point is that with subscription-based SaaS, you have nothing, even if the solution is deployed locally.

NFT may solve this problem

Suppose you want to buy assets, any digital assets—music, movies, software licenses, limited use rights for photos, and so on. At the time of purchase, the platform will create an irreplaceable token that points to the original file or download location. The token serves as your proof of purchase. You store the asset locally and most likely access it through an app that will use your token to verify ownership when you try to interact with it (or, for example, if the license period has not expired), which will prevent copy-pasting Distribution and other intellectual property infringements.

With the right design, such systems can even allow the transfer of ownership, as long as they are legally integrated into the NFT. In this way, after enjoying a copy of “Goonies”, you can give it to a friend or resell it, and you may need to pay a small amount of royalties to the person who owns the rights to the movie or the original seller. By the way, the latter first solved the problem of driving the transition to SaaS. The company doesn’t want a secondary market because it competes with their sales, but because of the built-in royalties in the NFT, they will have a place in each subsequent resale. In other words, every movie sold becomes a constant gift.

related: We haven’t even begun to tap the potential of NFT

It is true that the ownership part requires more work, especially on the legal side. None of these concepts have been tested, but whether they are artists or collectors, they all need to be tested, just to set a precedent and start writing scripts for this uncharted territory. Technical expertise and commercial or legal expertise are not the same thing. Some of us remember the EOS token sale and how much money raised must be held before the SEC completes its investigation. Talking about its legality and the project to prove its legality in court are two different things.

Although NFT is not without flaws, Dismissal As an inherently toxic and fraudulent technology, they were rushed at best in the early stages of their development. On the contrary, what the field needs is more supervision on the one hand, and more entrepreneurial spirit on the other. Today, art and commerce go hand in hand, and as NFTs mature, their journey from memes to wealth is likely to bring them into the corporate world as well.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views, thoughts and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Liam Basel Is the head of corporate communications and investor relations at Banxa, a legal encryption gateway that complies with international standards. Before joining Banxa, Liam served as Chief Marketing Officer of Diginex, Chief Marketing Officer of BC Group, and Marketing Director of World First (acquired by Alibaba). Liam is a marketing leader with 18 years of experience in establishing fintech companies (from startup to listing).