Web 3.0: The Power of NFTs

in #hive-1679229 months ago

The bubble in non-fungible tokens (NFTs) a couple years ago has left a lot of people battered. Like most of these situations, it turned a lot of people off. The claims that NFTs are dead and worthless are spewing.

Unfortunately, also commonplace, is tossing the baby out with the bathwater.

Here we see the issue with market exuberance versus technological development. Another way to frame it is the proverbial speculators vs builders.

The former took it on the lip.

Just because there was a major bubble hyping nonsense does not mean the technology is not valid. In fact, when it comes to Web 3.0, NFTs might hold some of the greatest potential.

As for history, we have to keep in mind many made similar accusations about the Internet after the dotcom bubble. There was a belief that it was nothing more than vaporware and most of these companies were nothing. It turns out the likes of Google, Amazon, and Priceline turned that on its ear.


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Web 3.0 Will Be Powered By NFTs

When it comes to a new ownership structure, NFTs are central in this idea.

In fact, if one does a simple thought experiment, consider the idea of a NFT being created for the ownership of everything. Whatever is around you, picture that as having a NFT.

Does this mean each is going to be worth millions of dollars? No. We have to get away from the speculation mindset. Think like a system builder.

The concept of real world assets being tokenized holds a great deal of merit. NFTs are the engine that is going to make this a reality.

Serial Number

Let us start with a simple concept.

Anything with a serial number can have a NFT. Suddenly, this becomes the "deed" or "title" to the asset. Obviously, a NFT for an old rocking chair might not be necessary (unless it is an antique), one for a car or house could be.

Taking this a bit further, we can really see it clearly in the world of collectibles. Paintings, sculptures, wine, dolls, and a host of other items are collected by people. Some items can generate enormous value. That means a host of entities get involved such as insurance companies. Authenticity is crucial.

If we look at supply chains, the same holds true.

For perishables, such as food, these can be time stamped and tied to the NFTs. If we are dealing with non-perishable items, it makes it easy to track for things such as warranty and defects.

NFTs create individual ownership tied to a specific item. This allows for the enhancement of markets are liquidity could be achieved in an easier way. Many items have enormous layers of friction. Here we are eliminating some of that.

Digital Ownership

Perhaps the biggest benefit to NFTs is in the ownership of digital assets.

We will start by looking at what most are accustomed to: the website.

Who owns this? Obviously, we can look up the URL to get some information. People basically have the website registered allowing them the rights to that site. This is transferrable and, in some cases, worth a lot of money. After all, what is Google.com worth?

For decades, this was the basic digital asset that everyone can identify with. The NFT craze of a couple years ago gravitated to the other digital asset we understand, images. This is why NFTs tied to a jpg were sold. Even Justin Sun got into the action by paying $300K for the first Tweet. The reality is that sun doesn't own the tweet, Elon Musk does.

That said, we do have the potential to radically alter the Internet.

With the server-client architecture, all data (webpages) are owned by the ones behind the servers. This is Google, Amazon, or Joe from Joe's Used Violins. This is not open data.

Web 3.0 alters this by using public databases. This means that anyone can incorporate it into a website. Here we see data that is unowned.

However, we can use NFTs to alter this some. Basically, a NFT can be created for each webpage, generating an owner. This means that we are looking at the potentiality of many pages on the Internet being owned by individuals. Revenues could be generated through different means, providing value to one's ownership.

It is here we see a massive amount of potential unleashed. Suddenly, millions of people have a vested financial interest in the "performance" of different pages tied to a specific website. It takes platform economics to another level.

Generic NFTs

The final part of this discussion are generic NFTs. By this we mean those not associated with something specific.

Under this scenario, the NFT operates as a certificate of value. Instead of being tied to an item, it is associated with a particular amount, most likely in USD.

The utility of the NFT, or what it is tied to, is fluid. This means that in one game it can be tied to a weapon, whereas it can be transformed into fuel for another. Through an exchange, swapping of utility can occur based upon the monetary value associated with the NFT.

Think of this like a gift card that can be spent on anything. Unlike a coupon which is specific to an item, a gift card carries a specific monetary amount.

Of course, the value will fluctuate based upon the market prices associated with various forms of utility. For example, if one buys a sword in a game for $10, and the game becomes very popular, that item might jump to $30. If the person is leaving the game, he or she could sell the sword and have $30 on the NFT. When it decides to "purchase different utility", it will have $30 to spend.

This does not only apply to assets.

The same concept could be applied to activity. Perhaps there are certain NFTs issued for levels of activity within a game or platform. These could be issued and also have a market price. As that moves up or down, it could be swapped in the Network for something else.

Basically anything that can be quantified could have a NFT associated with it.

The possibilities are just beginning.


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Web3 is really gaining ground and that remind me, I always remind myself what went wrong with all the hype surrounding Nft

NFTs have great power, but they are still very underused.

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I see NFTs as the way to onboard millions of users into W3 as there will be many ways to participate without investment. We are working on an NFT based service/dApp and craft beer collectibles. Officially launching at Barcelona Beer Festival in three weeks.

We will share our progress on Hive as we move forward with the project.

My sense is you are still looking at it from a speculation standpoint.

Thank you for reminding us that NFTs are tremendously significant in Web3. Their power will soon be noticed.

Unfortunately, also commonplace, is tossing the baby out with the bathwater.- Right! Or cutting the head off just because of a headache .

This post certainly urges crypto enthusiasts to consider the broader implications of NFTs beyond mere speculation, hinting at a future where ownership is decentralized and economic value is democratized across digital landscapes.

This is no doubt an insightful perspectives on the diverse applications of NFTs, from tokenizing real world assets to revolutionizing digital ownership and blockchain technology.

I have been around long enough to see when the Internet was really nothing more than speculation. The dotcom era cleared a lot of that nonsense out.

Obviously, today, we see how crazy that concept was. Yet we see it applied to digital assets and Web3. Sadly, the inherent value in tokens means we have to deal with the speculation and price is all that matters crowd.

Hello happy Monday. I had to Google what NFTs are. Generally when I read these topics about finance, about tokens, cryptocurrencies, it got a little cooked because before there were no such terms, I'm talking about about 20 or 30 years ago. Thank you for being able to share information and let us know about how the digital world moves, and what digital money refers to.

If am not confused are nft really that strong. Because I know for sure that Web 3 is a massive deal

This is another use case that I did not realize. I think using NFTs with serial numbers can also be a security feature to protect against theft. Let's say a car or a cellphone is tied to a NFT, if it was stolen, the thief can't sell the items because they don't have the ownership of the NFTs. To buy and sell items in the future, the transfer of NFT ownership will be included in the sale.

I strongly believe there are somethings that still need to be worked upon before re Nft can get back what has been due

It is true that the biggest advantage of NFTs is ownership of digital assets. But nowadays NFT is becoming popular day by day. But there are some NFTs that are exceptions and are a fraud trap.

Two other practical uses for NFTs are POAPs (proof of attendance) and membership utility tokens.

With POAPs, an artist can host an event and issue NFTs to those who attend. The NFTs then become a badge of honor that could rise or fall in value over time. A one-time event, either physical or virtual, where all attendees receive a POAP just for showing up can serve as its own kind of memorabilia. No longer will people say, "Been there, done that, got the T-shirt". It will be, "Been there, done that, got the POAP".

With membership tokens, people can join an exclusive club. When they get tired of being members of that club, they can sell their membership to someone else, who then receives the token and the membership is transferred. If the original holder got in on the groundfloor of a club that later became very popular and yet exclusive, the value of that NFT could go up tremendously. The seller could profit from selling the membership.

Another take on the membership token is the loyalty card. Businesses can use NFTs to track purchases and reward customers who reach certain spending benchmarks, or offer discounts based on product preferences. The information will be more secure and more valuable than current loyalty cards.

All potential use cases that could have value and utility in the marketplace.

Not all NFTs are going to be worth a fortune or be used for speculation. Forget proof of attendance, the NFT could be the access token that gets one in.

So many possibilities.

The possibilities are the true value. I don't think we've yet seen all the creative ways NFTs can be used.

Yeah. We havent even begun to see the innovation behind NFTs. People will be able to come up with some incredible use cases.

I can hardly wait to see them. :-)

It will be interesting to watch.

"Ownership" is a strong motive to get into Digital assets but ownership really depends on what the "Distributer" contract says. Thankfully this information is usually easily available to the potential buyer but, like every aspect inside Blockchain/Web3, it is still something that has multiple layers that should be researched properly before getting involved with.

It'll be interesting to see what the next group of participants and creators do with digital assets now that all of the hype surrounding the subject has passed by. Thank you for sharing your knowledge on this subject!