Vision for NFTs
Describes our vision for the future of NFTs and why NFTs are here to stay
When taking a very high-level overview of the entire Web3 space from the business application perspective, the are major categories that immediately stand out: DeFi and NFTs, where DeFi is all about money and finance and NFTs might represent the remaining types of ownership. Although most people associate NFTs with JPEG collectibles, the ideas of tokenizing assets of the entire world as NFTs are becoming palpable.
But the question remains, what makes NFTs special and why we think NFTs have the bright future?
NFTs are the best so far representation of ownership of anything: real or abstract. And the ownership is still the best self-organizing instinct humans can rely on.
The last century battle of capitalism with its main nemesis, communism, can illustrate this. Communism, as we know, was a social experiment in some countries to strip away ownership of anything from people and make everything owned by the state. While in theory a good goal, so far pure ideology of communism never has been successfully implemented anywhere, not in USSR and not in Cuba or North Korea, and definitely not in China and all it did, was a transfer of the ownership from individual people to the hands of elite, producing in these countries the widest gap known to date between rich and poor. History shows how ownership and its associated bragging rights are so dear to our human nature that we will protect and foster it in any way we can.
And now, when the decentralization of Web3 can make the claims of ownership and data to be independent of any institutions or governing bodies, makes it especially sweet to our hearts. Something that we can reliably claim as ours and no one can tell us otherwise. This is a single reason we think NFTs are here to stay, and we need to explore all the potential uses of them.
So what we see as the potential main uses of NFTs in the years to come? By analyzing the current trends in the Web3 space, we see three areas that are standing out:
- 1.Digital registries of world assets
- 2.Creative economies
- 3.Games and metaverses
Digital registries of world assets will take care of everything you might own in the real world. Your real estate, cars, jewelry, luxury items, memberships, etc.
Creative economies are referred to as any process where human creativity can be monetized. Art, music, video production, algorithms are just a few examples. And in these creative economies, everything that we create can be tokenized as an NFT, which can go through some process that will add value to its original idea, with a goal of bringing it to successful monetization and profit. Read more in the Creativity Value Model in Appendix A.
NFTs in games and metaverses is another good example of how ownership of digital assets in virtual worlds can mirror and contrast the ownership of real assets in the real world, which proves to be very attractive to people when they take part in playing games and spending their time on social networks.
Lastly, as we know, NFTs can represent tremendous monetary value and the ability to monetize them, trade them, take royalties from them. All of which will fuel all kinds of lucrative ideas in the years to come. Therefore, we believe that NFTs are only scratching the surface of their usability and they will be as ubiquitous in the Web3 driven future, as some current Web2 attributes such as URLs. We just have to prepare infrastructure required for such business use cases — hence, Logosphere.