Nonfungible tokens are considered entirely worthless by some critics. The industry hasn't gloried in uncountable rug pulls and promotional events with quick pump-and-dumps.

But this isn't the point. Most physical and digital pieces we use in everyday life are already special; they are not fungible, which means they cannot be replicated, substituted, or subdivided.

Detractors may still ask, "What's the point?" NFTs are blockchain assets that are immutable and verifiable — these sound like industry buzzwords with very little meaning. However, they go a long way toward revealing the unimaginable use cases.

Contrarians can be found at every stage of technological innovation, from the literal Luddites of 19th century England who disrupted machinery that threatened their jobs to those who predicted the internet would be a passing fad.

We are getting closer to digitizing large swaths of our lives, not in a metaverse-owns-you-now kind of way, but rather through asset tokenization, which makes asset transfer more accessible than ever.

In a world of widespread crypto adoption, as with the internet, users will likely have little understanding of the system's underlying technology. It may be widely used in this

scenario: users will be unconcerned about previous negative connotations when they can obtain a brilliant novel approach to owning, renting, and selling.

The goal is to have low transaction fees and an easy-to-use user interface. There is currently no game-changing solution available to reduce barriers and eliminate unnecessary stigmas.

NFTs have the potential to alter the way we exchange value fundamentally. Here is a possibility to digitize assets in an open economy, hastening a step toward mainstream market legitimacy for blockchain solutions.

Using its full potential

The importance of being first to market in the rapidly growing tech world cannot be overstated. 

However, leading digital players have received the wrong type of widespread popularity, and there is a perception problem. Cynical sections of the media frequently cast doubt on blockchain-related projects, portraying the space as riddled with rug pulls and abandoned road maps.

What is frequently overlooked — and this will come with technology maturation — is how it can transform marketplaces: in gaming and all imaginable intellectual property as we know it. The utility of NFT solutions for commercial and retail users will determine mainstream success, and it is unlikely to be so inextricably linked to volatile crypto markets.

It performs functions far better than existing systems, and their use will spread across the business and consumer markets once effective and efficient alternatives are developed.

What characteristics distinguish an adoptable NFT?

A successful project is currently built on three primary pillars: a strong community, exclusivity, and utility.

People must talk positively about it and share information with one another. The most popular projects have a tangible sense of exclusivity, which should extend to the execution of NFTs in any media form. If a million other people in a game share the same skin as you, you won't think it's worth keeping.

The utility adds real-world value to the purchase and holding of an NFT. When consumers purchase a brand-new car, they understand what to expect, more or less. Of course, in most cases, you want it to look good, but to awaken mainstream curiosity, there needs to be an essential component of it serving a larger goal.

This next step requires a significant shift and evolution in digital assets other than how we interpret them today. The industry is gradually moving toward the "normalization" of nonfungible tokens, in which value is formed, and use cases are discovered.

One excellent example is secondary ticket markets, which could enable individuals to exchange verifiable NFT passes to a show, sporting event, or concert via a smart contract. In this case, the blockchain knows the ticket is genuine because, by definition, information can indeed be changed once it has been registered in a transaction.

More than just property

The winning combination of blockchain verification and self-custody has the potential to empower consumers while also making their online lives much safer than is possible today.

A passport can be kept on a mobile device and protected by multi-factor authentication, which makes the entire method of renewing this vital travel document much faster when there is an entirely digital solution. When represented as an NFT, creating a forgery becomes even more complicated, reducing the burden of protection on governing authorities.

Medical records are another application that can transform the often outmoded systems in hospitals worldwide. Collecting information safely is not an easy task, nor is the ability to share this data with other entities, which can be an urgent matter in some cases. NFTs solve this problem because, even if the computer-sharing procedures fail, individuals can obtain and share their own records.

We are rapidly approaching a world where individuals control their data and select who they share it with. Furthermore, digital assets will be their sole property, eliminating the requirement to rely on centrally controlled bodies to store and facilitate transfers.

Challenges remain

Blockchains continue to have technical limitations regarding throughput, scalability, and congestion. There isn't a single chain that can handle half a billion users, but we're getting closer to the day when this will become a reality.

Instead of listening to those afraid to try to understand the technology, we should focus on collectively delivering better outcomes to introduce a unique method of doing things throughout all businesses.

However, much progress remains to be made. The mainstream media and critics will not be able to delegitimize it independently. This application of blockchain does not fit into their viewpoint.

When mass adoption occurs, which I believe is simply a short time, we will enter a brand-new digital age built on the blockchain. People will have no idea what enables the seamless digital transfer of assets and information. But they will use it, massively enhancing how they lead their lives in both digital and real-world settings. This is unquestionably a future worth fighting for, regardless of the opposition.

Do you think we will see more widespread adoption of NFTs in the future? Let us know your thoughts by sharing this article on social media.

Oct 11, 2022
Digital Lifestyle

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