With all the developments around the Metaverse and all the changes in the digital world, it’s about time that we dive into NFTs and Blockchain. What are the digital trends for 2023 and what developments are on the rise? Let’s dive in.
Let’s discuss the rise and fall of NFT popularity
An NFT is a digital asset that cannot be duplicated, which makes it unique. This asset is blockchain-based, which means that the security around an NFT is based on blockchain technology, which we will look into later in this article. An NFT might be an abstract concept for some; you can think of it as a signed t-shirt, made individually for the user instead of that ‘product’ being mass-produced. Let’s look at the rise and fall of the popularity of NFTs.
What made NFTs popular?
One of the main advantages of NFTs is that they provide the opportunity to easily transfer ownership over goods and services that are bought online. Through blockchain technology, it’s been made easier, safer, and more accessible to sell and buy these digital assets. In the last few years, NFTs have been sold for thousands of dollars, which has sparked the interest of creators, buyers, sellers, stakeholders, and artists. An NFT can be music, a piece of art, parts of an online game, videos, avatars, and more. Its novelty creates interest among many.
With the rise of the Metaverse people will have to create digital worlds and avatars that navigate through these worlds; users can alter and change these environments by purchasing NFTs (such as digital art, clothes, or music) to enhance their avatars and spaces. NFT’s are also very popular in the gaming world and other industries are likely to see changes due to the use of NFTs. But what are its downsides?
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What makes NFTs less popular?
The global crypto market did not have the best year in 2022 with many cryptocurrencies being worth a lot less than before. This also has affected NFTs and their popularity. There are a few other reasons for its unpopularity; such as the fact that there are sketchy projects that are being presented and sold as NFTs, which doesn’t create trust amongst the (potential) buyers of them.
Another factor that plays a role in why sales in NFTs have been dropping is that there are many examples of NFTs that are not usable in the real world, such as virtual shoes. With the digital world (such as the Metaverse) still being developed, the usage of certain NFTs isn’t fully operational and utilised either. However, this can rapidly change once more people and businesses will use the Metaverse.
NFT trends to watch in 2023
Even though there are some (current) downsides when it comes to NFTs, this doesn’t mean that they will not continue to grow and disrupt current and more traditional ways of selling. Let’s look at three trends to watch in 2023; NFT in gaming, ticketing, and the Metaverse.
1. NFT in gaming
Gamers are known as a target audience that is already used to spending money on various purchases like digital weapons, game keys, and gear that make their online character stand out or perform better. This means that for them, the step towards purchasing NFTs is made more easily compared to a target audience that is not used to purchasing products that can be used in the digital world. The gaming industry has proven to be one of the most profitable for NFTs and experts expect more growth in the coming years. On top of that, an NFT will make it more clear for both the game developer and the gamer who owns these digital assets
2. NFT tickets
With NFT and blockchain technology, it has become much easier to store purchased goods, tickets, and services in one single place; your wallet. You can use this wallet anywhere and on any chosen device. When selling tickets, you want to make sure the buyer can find their purchase easily and that’s why more businesses are looking into selling their tickets as an NFT that is presented in a wallet. This area is expected to grow in the coming years as the Metaverse and other digital worlds are starting to become more advanced.
3. NFT in the Metaverse
The NFT sector is in line with the world of art. Artists are seeing potential in creating and selling their art pieces as an NFT. There are a few different ways to portray your work. Some digital artists are transforming physical works into digital art and selling it online. Then there’s a trend in which galleries and auction houses are shown in the Metaverse; artists can now portray their work to a broader target group since everyone can join the Metaverse instead of having a handful of people joining your art gallery. Whilst the Metaverse is expanding and growing, these ‘events’ in which artists can show their work online will also start to happen more often. This will increase demand for digital art.
Blockchain explained
Now that we’ve looked at NFTs and the rise and fall of their popularity and the trends that we can expect for 2023 and onwards, it’s time to dive deeper into ‘blockchain’. What is blockchain exactly? A blockchain is a database in which information is stored electronically. Blockchain is known for playing a critical role in cryptocurrency systems. This is because Blockchain technology creates a secure network in which there are decentralised records of the transactions of bitcoin and NFTs.
A blockchain essentially stores information on several networks at various locations, which creates more safety for the owners of bitcoin and NFTs. What is the difference between bitcoin and blockchain? Bitcoin uses the blockchain technology to store the data around the purchases that are made. Blockchain can, in theory, store information about bitcoin and NFTs but it can also store any other data; the blockchain technology can therefore be used for storing data that is not related to cryptocurrencies or NFTs.
Here are the blockchain trends that you are likely to see this year
Let’s look at three trends that we are likely to see in 2023. We’re looking at verifying digital identities, the creation of fair contracts, and validating people (and removing bots) who interact with your ads. This all happens through the advancing blockchain technologies that create more transparency, safety, and cleaner data.
1. Verifying digital identity
When interacting with other people or businesses online, you would like to be able to know who you are dealing with. With platforms such as Facebook and Instagram, you can often figure out if someone or a business is legit or not. This is not true for many other places on the Internet. With the Metaverse, blockchain, and NFT technologies growing, the need for digital identity verification grows as well. Some businesses are working on blockchain-based identity verification programs, to make it easier to buy and sell goods whilst knowing that you’re interacting with trustworthy people.
2. Fair contracts
When you purchase a ticket to a concert or football game you can buy this and resell it for a much higher price if there’s a high demand for a ticket that is sold out for example. This might benefit the buyer but certainly isn’t beneficial for the seller. With blockchain technology and with NFTs sold in the form of tickets; this will become more transparent and fair for the seller. A smart contract will make sure that sellers, artists or content creators, are paid for their services or goods they are selling. It also makes it easier to program rules and regulations into the digital assets that are sold, and potentially re-sold.
3. Validating people who watch your ads
When analysing your advertisements, it is best to have clean data that you can work with. This is not always the case, since often bots are interacting with your ads, which will provide you with data that is not based on the numbers that you need to base your future decisions on. Some businesses are using blockchain technology to make it easier to detect bots by creating ‘smarter’ advertising contracts and validating data. They’re able to gather data that will show you which real humans have interacted with your advertisements instead. This way, marketers can more easily determine their next steps.
In conclusion
The boundaries of e-commerce are constantly being pushed. With the developments in the Metaverse, blockchain technology, and NFTs, companies are wise to keep up to date with all that’s happening. In 2023, and the years after, new business models will be built and e-commerce will keep on changing. Keep an eye on what these changes might mean for your business and what implementations you can already take to create more growth for your organisation.
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