At the beginning of 2021, the irreplaceable token will, to a certain extent, become popular. Data encryption punk style, boring ape and other digital collections do not know where they come from, and play a leading role in the data encryption industry. The NFT craze soon became popular. People paid millions of dollars in price tags to get the hottest tokens, which may be a string of news headlines.

However, after the substantial increase of NFT, it was also surprising that the digital currency field was affected by the bear market energy of the stock market, and the price fell like a stone. Therefore, it is not surprising that there are many guesses about the future development of NFT. For people, what used to be called destructive power items quickly became another fashion trend.

The Rise and Fall of NFT

Projects like Cryptokitties are blockchain games that many people accept, feed and pay for virtual cats, and are the driving force behind NFT's popularity. The market price of some of the most valuable crypto cats exceeds 100000 dollars, and people around the world have started to sit up and care.

Then came the Cambrian NFT epidemic outbreak, and its value soared. Jack Dorsey, the founder of Twitter, sold his original logo version number of Twitter for $2.9 million, while Nijan Cat's animated GIF traded for $500000. The artist Grimes sold a digital handicraft for more than 6 million dollars. Subsequently, the works of digital artist Bipur were snapped up with an amazing 69 million dollars, creating a new world record for digital aesthetics.

The encrypted space is in a trance, but many voices warn that NFT indoor space is in the middle of foam. They were proved to be correct soon, because the price of digital collections basically fell as soon as it rose.

The quality of NFT is relatively highly subjective, because it does not take currency as the carrier, nor does it take any equity capital as the core. Therefore, it is not strange at all. Once the mentality of large-scale exhaustion around NFT gradually dissipates, the price that people want to pay will also dissipate. Recently, Bloomberg News reported that NFT trading volume may have decreased by 98% since it reached a new historical high of $146 billion in April 2022. The NFT bear market has come.

Influence of NFT

However, this is not the end of the story. Because NFT is still an extremely powerful technology, it can create digital scarce resources without any centralized intermediary companies. Like digital currency, NFT is based on blockchain technology, although they are different types of digital tokens with special characteristics. Although a Bitcoin can be divided into several satoshis, NFT should maintain a single and indispensable token.

Up to now, the application scope of NFT has always been as a real, valid and ownership qualification certificate for digital artworks. However, this technology can also be used for many more interesting applications. In fact, NFT can be used to verify the ownership of basically all types of assets, and give special browsing and benefits to the holders.

We are still at the initial stage of discovering the best real world test cases of NFT, but it is very obvious that their lethality is far greater than that of many JPEGs printed into blockchain technology. The so-called public utilities NFT has become the driving force of the second wave of sustained growth, enabling people to work, buy and sell online, and interact with each other in a good way.

New large and medium-sized NFT projects such as Bored Ape Yacht Club better understand this development trend. According to the incentive of allowing the holder to participate in the exclusive agency carnival party, it has enhanced the applicability of his NFT. However, as she starts to show her use value in many different fields, there is still much to do.

NFT utilities are the key

In fact, the only limit to the NFT effect is our imagination. The real estate industry is one of the most frequently cited examples of their interests in the real world. For example, according to the use of NFT with time format, land resource ownership documents can be transferred from one party to the other, and their ownership and value history can be tracked. NFT also provides a simplified and accelerated trading method based on blockchain smart contracts, making this technology particularly suitable for this field.

In 2017, Propy founded one of the first projects of this kind. The company sold a set of NFT, which owned an apartment in Kiev, Ukraine. The apartment building was formerly owned by Michael Arrington, founder of TechCrunch.

NFT can also bring some interesting benefits. For example, users of Crypto Baristas NFT can also enjoy discounts in cafes around the world and participate in "complete caffeine experience".

The freight logistics company can use NFT to verify the goods, ensure the quality and confirm the place of production. This is also possible, because all transactions based on NFT cannot be changed and transparent. For example, food business dealers can use NFT to confirm the place of production of their new products, and give relevant evidence about where the goods are and how long they have stayed there.

The recent Paris par Art Basel 2022 in Paris, France explored the more creative use of NFT, where the writing artists Zanken and William Mapan used this technology to imagine the digital drawing board again. The theme of the exhibition is to explore the intersection of art and blockchain technology, and how Tezos NFT with low cost and green environment can make technology more diversified and accessible. Therefore, the artists cooperated with the art platform fx (hash) formed according to Tezos, creating a feeling of communication and forging on the spot for NFT. At the exhibition, every viewer was invited to scan the QR code to create a completely different handicraft based on NFT, and use the artist's code to fully automatically 3D render. Once displayed, this unique handicraft was immediately cast into NFT, displayed on the screen in the exhibition, and dropped into the creator's wallet as a gift.

NFT can also do many good things. The new GainForest project, which is located in Switzerland and Germany, aims to save the earth's tropical rainforest for future generations. It uses NFT to describe specific mountain forest parts in the real world. The idea is that NFT holders can help by tracking their physical conditions in the mountain forest area represented by their tokens.

At this stage, the rapid development of NFT in public utilities is a continuous whole process. It is very likely that this technology will become popular within two years. However, this early project shows how NFT has become a more useful special tool than a single space art and collection.

You may see foam plastic at the beginning of NFT, but this technology is not a fad. NFT is far from its peak, but it is very clear that digital art and collections are just the beginning of some important events.