The Rise of NFTs in Web3: Opportunities (2024)

Prior to Blockchain Technology and Web3, Web1 and Web2 piqued the interest of the entire world. It is worth mentioning that 2021 was the year of NFTs; In a few years, NFTs became a global sensation piquing the interest of individuals from all walks of life.

NFTs have so much to offer in the blossoming world of web3. In this article, I'll cover the current use cases of NFTs and how they are evolving the web3 space. But, for the sake of clarity, I will briefly discuss what NFTs are, in case you're just hearing about them for the first time.

What is an NFT?

NFTs (Non-Fungible Tokens) are specially encrypted codes assigned to any digital artwork to demonstrate its uniqueness even when it is up for sale in the art market. The NFT community is growing exponentially; the use cases will soon reach a new peak. For example, Non-fungible tokens are gradually making their debut in the gaming industry - this would be a life-changing moment for many developers and die-hard fans of gaming.

The admittance of Web3 in the gaming industry will allow players to trade game assets in a marketplace for new characters or weapons - insanely unbelievable! Additionally, NFTs will lay a strong foundation with respect to ownership and identity in the metaverse.

How NFTs are Exponentially Changing Digital Ownership

Can I be real with you? The entire world is already shifting its focus from Web2 to Web3; the technology behind NFT transactions provides individuals with ownership information, timestamps, and a record of transactions associated with the NFT art.

Furthermore, the functionality will allow you to create unique digital assets that anyone can buy or sell on a marketplace. Yet, posing a revolutionary potential for many businesses in the world of web3.

Areas NFTs Are Impacting Positively

Thankfully, NFTs are revolutionizing utility access to various industries - below are some of the areas in which the non-fungible tokens are impacting positively.
  • Gaming Industries
  • Passcode to Digital Communities
  • Proof of Ownership in the Metaverse

1. Gaming Industries:

The gaming industry is one of those sectors NFTs will play an important role. As mentioned earlier, non-fungible tokens allow players to easily procure in-game assets. For instance, DeFi Kingdoms - built on the Harmony Blockchain - have an arsenal of NFT "heroes." Players can buy, sell, or rent these assets on a marketplace.

Aside from acquiring in-game asset ownership, the NFTs are also productive - they can be used to earn Crypto or other items to harness their games. Equally, using DeFi in the gaming Industries will maximally enhance the in-game economy. NFTs are highly valuable assets because of their attributes - they could also dictate the amount of cryptocurrency a player will earn. With DeFi, players will be rewarded handsomely and be in control of their earnings while playing those games they're most passionate about.

2. Passcode to Digital Communities and Events:

The use of NFTs as "membership pass" is one of the revolutionary use cases of NFTs. Many of us think that NFTs are only limited to artwork, however, this is not the case. NFTs can also be used as e-tickets, music, wallet, domain names, trading cards, and property in the metaverse.

When NFTs are admitted into the event organizing industry, as an NFT holder, you will be able to attend one of "Burna Boy's Concerts" or any music festival that intrigues you! The NFT will act as an e-ticket for optimum transparency. In the same light, show organizers could partner with artists to create a unique NFT collection for the e-ticket whilst converting them into valuable and tradable assets with high market value.

The power of non-fungible tokens cannot be underestimated - NFTs also have a handful of opportunities in the physical world. For example, an NFT trading platform - OpenSea - may host an event in the physical world called OpenCoins - the event will be exclusive to only people who hold their NFTs; this implies that NFTs can function as an access gateway and also be used as a social currency.

3. Proof of Ownership in the Metaverse:

Scared that someone, somewhere, will claim your name in the Metaverse? Don't fret! With non-fungible tokens, you can leverage digital ownership via a custom domain ".eth" Ethereum wallet address. The Ethereum Name Service (ENS) continues to grow drastically as it has amassed over 671,000+ unique ".eth" addresses registered already.

Instead of using a long string of numbers and letters like "0x00797865df055a06EC4A97A70b25", Ethereum Name Service enables you to get a simpler wallet address like "cjfrankiehustle.eth."

More so, the Metaverse project - Sandbox - is already leveraging NFTs to portray digital land, decoration items like furniture, and what have you. According to statistics, Sandbox generated over $24 million dollars in revenue in March 2022 through the sales of metaverse real estate. Just so you know, top brands and celebrities from all walks of life, like Atari and Snoop Dogg - just to name a few- plots of this digital land.

Conclusion: The Rise of NFTs in Web3: Opportunities

It is very lucid that NFTs are revolutionizing the ownership and exchange of these digital assets we hold. Looking ahead, we hope to see more evolution of NFTs; people are anticipating seeing traditional businesses adopt NFTs - the possibilities of NFTs seem unending, and we look forward to witnessing more opportunities it has to offer the world.

About Frank Chukwurah


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