NFTs have been all the rage as of late. With new artists, celebrities, and even major companies joining the fray, it feels like NFTs are here to stay. There's one major problem though, the NFT market is still ripe with scams, extremely volatile in nature, and misunderstood by the general masses. In order for NFTs to truly go mainstream and stand the test of time, they need to evolve and take the next logical steps towards legitimacy. Let's take a look at 5 things that can solidify the future of NFTs and ensure they don't end up being the next ICO bubble.
1. Rights Management & Exclusive Rights
NFTs by their nature attribute rights to the owner of the token. Unfortunately for many owners, there is no legal precedent in the industry for what happens when someone attempts to infringe on those rights by duplicating the item on another chain or off-chain. This problem could be easily solved with clear standard licensing and ownership rights tied to the purchase and registration of the NFT. This could be done as an industry standard with multiple forms of licensing that allows the owner of the NFT to stipulate how it may be used. This licensing piece can be built into the NFT issuance chain and software so that the license stays with the NFT and is easily visible to all. In this way, the purchaser of the NFT has legal recourse if someone attempts to duplicate and/or profit off of their legal property.
2. NFT Plans, Designs, and 3D Printing
This one plays off of the first item on our list. If digital rights and licensing are attached to an NFT, the marketplace for NFTs and what types of creators can profit off of them expands greatly. For instance, if you are an architect and you design a set of plans for a home or building, it benefits both you and the purchaser of those plans to put them on the blockchain as an NFT. In this way, you can know what companies own the plans, they have full legal ownership rights to build off of those plans, and you can limit how many companies are licensed to build your building which can raise the price depending on the scarcity of availability. Not only that, but it allows for creative marketplaces where builders can look for plans as well as homeowners. If a builder finds a set of plans they love, they can purchase the NFT. If a family finds a set of plans they love, they can then see which builders are licensed to build that home. It allows for a much better process for all parties involved and makes it easier to connect the entire stream from creator to ultimate consumer. This would also apply to other kinds of designs, such as furniture or 3D printing.
3. Deeds & Titles
This one will require buy in from Federal and local governments, but could vastly simplify our daily lives. Let's face it, everyone hates the DMV and the cost and hassle associated with titling a home when you sell it is silly. If vehicle registrations and home ownership were tracked by deeds that were registered as NFTs, everything would get much more efficient. Not only would you be able to track, register, and view chain of custody of the vehicle, but you could associate major repairs, accidents, annual registration and inspections, and any other data that needs to be tracked with that vehicle. For a home, you would be able to make an easily accessible public database of the home, chain of ownership, sales price, even payment of taxes and any liens or other important information. All of this would require far less administration by the state or local government and selling your house and transferring the title would be almost instant and require a simple mobile transaction. A smart contract could serve as escrow and you cut out a huge chunk of closing fees that are completely unnecessary. You also make it a lot easier to maintain and keep track of the title or deed to your car or your home. It's a win-win all around.
4. Major Gaming Adoption
Don't get me wrong, many of the games that are out there using NFTs are fun, but they are still in their infancy. In order for NFTs to really catch on in the gaming world and become the standard of ownership of in-game items, we need major adoption from serious players. If companies like Ubisoft, Activision Blizzard, and Epic Games start implementing in-game items as NFTs, it could completely change the landscape. We have already seen a gold rush for in-game land and real estate forming, but imagine if that land was in a AAA MMO. In game real estate is just the tip of the ice berg. Companies should be handing out unique NFTs at trade shows, for holidays, and special events so that the player who attended or participated doesn't just get a unique item, but fully owns that unique item and the rights to sell it. Even if the items are simply cosmetic, this kind of interaction could go a long way towards creating new levels of value for players who take their games seriously and put in 100s if not 1000s of hours to get truly unique items.
5. VR Galleries
NFT art has been one of the hottest sectors so far when it comes to growth in the industry. The problem many have with NFT art is that anyone can view that art or duplicate it. After taking into account number one from our list and securing the rights to the NFT, by building custom VR galleries as a social experience we can take NFT art to the next level. By allowing curators to display their NFT art in custom galleries that they and their friends can tour in VR, much like you would a museum or in their home, you allow an entirely different level of pride of ownership. This kind of VR experience is the future and NFT art can play a big role in helping bring it mainstream. It would only take participation by several popular artists or celebrities in a form of NFT gallery unveiling where someone has purchased exclusive right to display their art to really change the game.
Taking the Next Steps
NFTs may be the hot ticket in this current bull market, but they have a lot more potential room to grow. The five items outlined above are just a few examples of ways that NFTs can mature and evolve into an important piece of our society and the social conversation. What do you think about NFTs and which idea would you most like to see? I would love to see them all for different reasons but I have to say, the idea of touring VR art galleries with friends sounds pretty fun to me!