There was a time when the cousin sisters of cryptocurrencies started to become a global phenomenon following their enormous growth in 2021. Everyone who turned their heads to the sector was surprised with the rise as the notion had not become mainstream yet. But the glory days are over, and now the vessel appears to be sinking deep in the waters.
Non-fungible tokens are a digital art form persisting on blockchain. Anything which we can imagine virtually (which is like everything with the exceptions of a few elements) is a non-fungible token. You clicked a picture, made a painting, burnt a passport and made a video out of it? Well, all of the mentioned acts can be an NFT.
Since the crypto winter has hit the sector, it has affected several others associated with the sector. It’s like Chandler Bing saying “If I am going down, I am taking everybody with me.” I hope you “crack” that “code.” Anyways, coming back to the present, the NFT sector is reduced to ashes with sales volume down by over 99% within 9 months beginning January 2022.
There was a time when people claimed that these digital pieces on blockchain are nothing but an image. Anyone can “steal” the “original” work through a legendary invention by Larry Tesler called “copy and paste” invented 1973. You can simply copy the artwork or what many address it as, “an image,” just by right clicking on the mouse within a matter of seconds.
Can Utility Revive The NFTs Again
An individual executed an NFT “heist” by copying all non-fungible tokens available on the internet and made them available on “The NFT Bay,” non-fungible sister of The Pirates Bay. The torrent file containing the “stolen” data had a size large enough to give a heart attack to an average household computer.
But this mocking effort appears to be a failed attempt as the digital tokens are coming up with latest use cases everyday. Music artists, filmmakers, fashion companies, sports organizations and more have understood the potential of NFTs. One of the vital reasons remains elimination of piracy attempts by the malicious actors in the game.
Retail giant Amazon uses blockchain technology for their supply chain. But NFTs can make it better as the companies can attach them to particular products. It will allow the users to authenticate original data of a product. Understand it with this example, you receive a pair of Nike Jordans, but you are not sure if it’s a fake or original. An attached non-fungible token will offer the accurate manufacturing details.
Data persisting on a blockchain is immutable, making it impossible to alter the details. So the information offered by that NFT will ensure the authenticity of the product. This is just one of the several emerging use cases concerning the non-fungible tokens. Now the question remains, can the surfacing utility push the sector to its peak?
Source: https://www.thecoinrepublic.com/2022/10/08/nft-sector-is-fading-away-again/