Before we dive into the latest trends in NFT and gaming let’s first try to understand what NFT means. A non-fungible token or (NFT) is a unit of data that is not interchangeable and specific. This data is store on a blockchain that is for making a digital ledger. Since NFTs are a piece of data they can be associated with digital files like videos, pictures, documents, and even physical assets. NFT can be used like cryptocurrencies for trading purposes but unlike cryptocurrencies, they are not interchangeable therefore, they are not fungible. Moreover, NFTs do not restrict the sharing or copying of digital files but, they make use of a digital ledger to acquire proof of ownership.
Upcoming trends for NFT in 2022
- Gaming: NFTs show great prospects for the gaming industry. Games having the play-to-earn (P2E) models of the money-making business is a real deal. Playing games to earn money has caused quite an uproar as it is a fun way to earn money
- Metaverse: It is a digital space in which virtual and physical technologies can coexist. It is a dimension where users can explore and interact virtually via the internet. NFTs in this virtual space can be used as valuable assets. Metaverse is a very good prospect for NFT.
- Avatars & PFP NFTs: Profile picture (PFP) and avatar NFT has been and is a booming field for NFT usage. NFTs in such cases has helped create communities and maintain digital identities
- Fragmentation of NFTs: This process is carried out in NFTs that are very expensive. The process breaks the NFTs into lower value shards which are fungible hence, making them more accessible.
- AI NFTs: Although AI-generated NFTs have been around for a while, this still has a bright future as much AI-generated arts are being sold at a good price and the value will keep increasing with time.
- Entertainment: NFT has also covered the entertainment business where a song, a movie, an album, etc that is part of an NFT will have a high value. Entertainment with NFT is will turn out to be a booming business shortly.
- NFTs in Health: Using NFTs in health also seems like a good prospect. The data of an individual can be converted to NFTs and be monetized. This brings a whole new perspective to generating wealth from wealth.
Investing in NFTs
Many companies in the world have been using NFTs for their customers to access data to their liking. NFTs are mostly purchased using Ethereum that is a cryptocurrency and other cryptos like Polygon, Solana, and Polkadot are also used.
Games like Axie Infinity and Blankos Block Party with play-to-earn (P2E) models are paving ways to earn money by using NFTs.
Besides games, metaverse companies like Decentraland and Sandbox are using NFTs to monetize everything in virtual and real space via tokenization. It seems Twitter and Meta may also use NFTs for their upcoming ventures.
Another prospect at hand is NFT ticketing where companies like GET Protocol and Centaurify are selling tickets with NFTs.
AI-generated art using NFTs like Arlequín, which was created by an AI called Alicia and another artwork created by an AI called GAN were sold at good prices.
NFT animated series called Stoner Cat is quite the phenomenon in the entertainment and show business.
Aimedis is a company that has launched the world’s first medical and scientific NFT marketplace to monetize medical data using NFTs.
Also burning Art has given NFT a new platform to gain new data. Injective Protocol, a blockchain firm took pictures of burning art and sold it as NFTs.
Lending & Borrowing of NFTs
This is like taking or giving a loan. To be precise it is acquiring a loan of cryptocurrencies on user’s NFTs or giving a loan of cryptocurrencies against user’s NFTs. In simple terms, users can make use of their NFTs as collateral to lend or borrow cryptocurrencies on a decentralized platform.
Many NFT users have digital assets that are not used unless they interact with other users on certain platforms. Therefore, such assets remain in their wallets without much of their purpose being fulfilled. This is where NFT borrowing and lending come to play. Having a platform where users can lend or borrow cryptocurrencies. This could be in exchange for NFTs has proven to be an effective way to utilize digital assets.
NFTs have gained popularity in recent times. It will carry on to do so due to the increase in digital art, entertainment, sports, business, etc. They are proving to be valuable digital assets shaping the way of transactions and finance. The NFT Lending platform enables users to generate income by creating and lending NFTs to others users. It is also true the other way round where users can use NFTs as collateral to borrow cryptocurrencies.
There are platforms where NFTs are loaned among users that provide them with the benefits of safe transactions, transparency, liquidity, and simple workflow. Therefore, this lending and borrowing of NFTs in decentralized platforms make NFT a valuable digital asset, with a bright prospect in terms of money.
Combination of NFT and Defi
Defi and NFTs are the most prominent trends in the crypto industry at present. Decentralized finance or Defi and non-fungible tokens or NFTs have taken the spotlight in blockchain technology. Defi provides decentralized access to financial services whereas non-fungible tokens are assets both virtual and physical.
So, the question lies, how can the two be related? It is quite simple, NFTs are assets with value and Defi provides a platform to unlock that value.
The NFT and Defi combination is capable of representing a commercial platform of digital goods and services and catering financial solutions to avail those goods and services. For example, Ethereum has introduced ERC-20 tokens that are used to offer representation for digital assets. This gives NFTs proof of ownership rights for digital art. The flexibility of proving ownership to NFTs with the help of Defi is a great benefit for users that adds value to their assets.