With all great revolutions come the unprecedented ramifications. NFTs are not any different either; despite all the craze behind NFTs, they have come under scrutiny for contributing to global warming. However, it does not mean there cannot be an environment-friendly approach while dealing with NFTs.

The Impact Of NFTs On The Environment

Talking of the lucrative crypto investment world, NFTs are believed to be the prime frontier. NFTs are gradually becoming digital equivalent to art pieces and collectibles. The tokens have accumulated millions of dollars of investment in different products already. As they continue to appeal to the masses, many people fear that their environmental fallouts can be detrimental. The most misunderstood reason cited is that a significant amount of energy would be consumed while adopting the NFTs, resulting in more carbon emissions. However, there is a lot to be researched before reaching out to any conclusion. Printing fiat currency, producing coins, credit and debit cards, etc., also result in carbon emission in one way or the other.

Blockchains & NFT Platforms To Move To Energy-efficient Concepts To Curb Global Warming

Even after revolutionizing the digital universe, NFTs have come under controversy from the sustainability viewpoint. Some people believe that NFTs come with unique challenges, and the impact of NFTs on the environment has been explicitly under the scanner. The reason is that a significant section of the NFTs comes as a part of the Ethereum blockchain. Under the present protocols, it is energy-intensive. However, as Ethereum switches to the proof of stake concept from the proof of work concept, the energy consumption is set to come down significantly. And platforms such as Palm have already started to embrace this change. Besides, as more energy-efficient Blockchains and NFT platforms hit the market with a negligible carbon footprint, the argument that NFTs add towards global warming would hold no substance.

Balancing The Environmental Impact

The NFT market is expanding. Along with it, green-conscious collectors and artists are looking for a viable remedy to mitigate the impact of NFTs on the environment. They are increasingly moving towards platforms that incorporate lower-carbon systems. This way, they use NFTs while offsetting the level of emission.

One of the leading platforms focusing on digital collectibles has already paired up with an organization called Aspiration. While the platform uses the Ethereum blockchain, Aspiration has developed a software called Plant Your Change. This financial service organization enables customers to use the spare change automatically from every purchase for planting trees. Of course, it is a welcome move from the NFT platform, and others are likely to follow the change.

The solution to counter the sustainability concerns regarding NFTs lie in adopting an eco-friendly stance from the business perspective. Being environmentally accountable holds the key to grow a sustainable economy out of NFTs successfully.

Conclusion

Any development, ranging from industrial sectors to housing, comes with an adverse effect on the environment, either big or small. Hence, there are clear guidelines to follow in activities associated with such sectors. In the case of NFTs, too, a similar approach is imperative on the lines of ‘green development’ or ‘eco-friendly constructions.’ This way, the global community would be capitalizing on the exceptional opportunities in the NFT world. It is all about how organizations shape their policies to ensure sustainable growth and mitigate global warming. Stakeholders involved in NFTs are well aware of this, continually working on making the process as energy-efficient as possible. Hence, investors, traders, digital art collectors, and others who want to get started or are already involved with NFTs can rest assured that their actions will not have any negative impact on the environment, such as leading to global warming.

Unlike other digital assets that can be mutually interchanged, Non-Fungible Tokens (NFTs) come with proof of authenticity, which we have discussed in earlier chapters. This concept is what makes it a suitable security addition for the healthcare industry.

Why Are NFTs Suited For The Healthcare Industry?

The healthcare industry is a sector very frequently targeted by cyber adversaries. Nevertheless, NFTs promise to create a verified digital healthcare space with minimal data theft, impersonation, scams, and malware attacks. Right from human error elimination to data ownership by health care professionals (HCPs) and patients, NFTs can be utilized in every aspect of the domain to create a safe, secure, efficient, reliable, and non-threatening cyberspace for all healthcare industry stakeholders.

Where Can NFTs Be Used In The Healthcare Industry?

The use of NFTs in the healthcare industry is an under-explored avenue. It facilitates optimized and digitized health services where stakeholders feel more responsible in managing their data. Also, there is little room for ambiguity. The following areas in healthcare can benefit highly by deploying the NFT concept.

Tokenizing Patient Data

One of the most direct uses of NFTs in the healthcare industry is the authentication of patient records. NFTs distinguish one set of original patient data from another and enable patients to own their data set. It brings down privacy risks from third-party data breaches, and patients can decide which third-party service has access to their confidential data and for how long. Consequently, there is less chance of human error and other benefits, like minimal transfer time, faster completion of treatment formalities, and increased overall efficiency.

Riddance From Fraudulent Practitioners

By tokenizing the credentials of HCPs, NFTs ensure that only verified practitioners with necessary educational backgrounds, certifications, degrees, and Continuing Medical Education (CME) credits provide their services at hospitals. NFTs remove the possibility of fraudulent practitioners launching impersonation attacks and ensure patient safety both financially and health-wise.

Intellectual Property Protection

The field of medical science is the platform for scientific geniuses to put forth their research findings, discoveries, and inventions. Pharma marketing also develops unique materials and solutions. Tokenizing these remarkable discoveries, ideas, and solutions using NFTs facilitate the eradication of intellectual property theft. NFTs protect intellectual property and provide transparent ownership transfer with zero room for ambiguity or fraud.

NFTs In Health Services Offering

Apart from the general suitability of NFTs for the healthcare industry in terms of better security, data management, efficiency, and authenticity, they are particularly favorable for core health services, as explained below.

Services Verification

The verification of offline and online transactions linked to each other has become necessary in times of the COVID-19 pandemic, and NFTs are the solution. Be it over-the-counter purchases or tokenized prescriptions, NFTs ensure that information can be traced back to the initial manufacturer or writing (if there is an anomaly). NFTs facilitate transparency in the prescription delivery service by associating digital tokens with physical products.

Coupon Redemptions

An advantage associated with NFTs is the ease with which one can trace back coupons to the issuer. NFTs facilitate quicker and more accurate coupon/offer redemptions at a one-on-one level. It further ensures that coupons aren’t manipulated, forged, misused, or falsely generated. NFTs uphold the integrity of such coupons by making the entire redemption process black and white and traceable to the end.

Tokenized Blood Donation

Several blood donation organizations are already using tokenizing blood donations using NFTs. It gives donors the provision of monitoring whether their gift has reached a person in need. Such tokenized blood banks ensure that every ounce of donated blood can be traced back to the donor and recipient, with details of the intermediaries (blood bank, hospital, etc.).

Factors That Led NFTs To Tokenizing Healthcare

When NFTs proved their worth as lucrative investment options, there were discussions on implementing this futuristic innovation in the healthcare sector. As a sphere beset with cyber issues, the traditional healthcare field could use the security that NFTs guarantee.

Since NFTs are a digital version of tangible assets, data, or objects, they ensure transparency of ownership and transfer in healthcare services. It, in turn, allows the best healthcare providers to flourish. It led to the tokenizing of the healthcare industry.

NFTs Vs. Latest Technologies In The Healthcare Industry

Over the last decade, many technologies have been widely incorporated into the healthcare industry. They include telemedicine, portal technology, the Internet of Things (IoT), and blockchain technology. However, the inclusion of technology has brought in an increased risk of cyberattacks, and a testimony to this fact is the rampant ransomware attacks on healthcare providers. Thus, the concept of NFT can be a savior for the healthcare industry to an extent to help cope with the above threat scenario.

Conclusion

NFTs thus find tremendous applications in the healthcare sector. By tokenizing the healthcare industry, NFT implementation can help ensure that there is no mutual interchangeability or manipulation of data. They also facilitate the creation of transparent and coherent market spaces. NFTs will potentially play a crucial role in the future healthcare industry.

The Non-Fungible Token (NFT) marketplace is vast and caters to all types of traders. From beginners who might want to purchase fan art for pleasure to the seasoned veterans who spend several million to acquire future classics — there is something for everyone.

What Must You Know Before You Trade In NFTs?

NFTs is among the leading technologies in the cryptocurrency space, along with DeFi and smart contracts. Here are the things to know before you invest in them for making profits:

· The Most Promising Categories In NFT: People might think that digital artwork is the most promising category in NFT. However, some types of NFTs could be more lucrative over the long run. These include gaming assets, sports collectibles, and music. Premium NFTs such as those made by established artists have more value than general NFTs created by regular sellers.

· Due Diligence: Knowledge or awareness about the object being bought is essential while dealing in NFTs. Digital art and collectibles are now trending, but several purchased NFTs will eventually become worthless with no buyers for them. Collectors and investors will have to keep themselves updated with the latest developments and trends to have an advantage in the volatile markets. One must research with due diligence before making any trades.

· Market Volume And Liquidity: Market volume and liquidity are matters of concern when it comes to NFTs. Unlike cryptocurrencies, where the market is mainly liquid for large-cap cryptos, NFT markets are more illiquid, and it can be challenging to sell an NFT in an aftermarket. It is vital to know that purchasing an NFT can be a long-term commitment due to illiquidity.

· User Experience: An NFT marketplace is much more than a simple place for trading tokens or collectibles. Platforms like Axie Infinity and Decentraland, for example, have created utility tokens that allow users to trade collectibles and assets with each other without having to be dependent on the platform itself. Choosing the correct marketplace for trading NFTs is vital.

· Fees: One significant factor to keep in mind is transaction fees. You should know both the platform’s and the NFT blockchain’s underlying gas fees, so you are not taken unaware. The prices include additional costs that go to the platform or creator after a sale and can range from 2.5% to 15%. Before making any dealings, ensure no hidden costs are involved.

How Does The Future Look Like For NFTs?

NFTs became more mainstream when Christie auctioned a digital work by Mike Winkelmann. The revenue being generated by them continues to rise by the day. The NFT marketplace, for instance, grew over 800% in the first few months of 2021 to $490 million. It has been estimated that almost 85,787 NFTs were traded in May, amounting to nearly $5.8 million a day.

These numbers show that it is safe to assume that NFTs are here to stay. There are risks involved, however, and people should take care before investing their money. There are several ways NFTs can be used beyond only collectibles in the future. Some future applications include:

· Gaming: NFTs allow players to own digital items such as skins and unique assets (As discussed in Chapter 5).

· Document Storage: NFTs can be used for secure storage, retrieval, and authentication of documents.

· Anti-Forgery Applications: NFTs can be excellent for dealing with data duplication, forgery, and modification.

· Environment-Friendly Paperless Transactions: NFTs allow organisations to store information and transactions in a secure, paperless way which is beneficial for the environment.

Why Is NFT Adoption Bound To Grow?

NFTs will find increasing use and acceptance across various fields due to the nature and wide case-uses of the technology. Already, the technology is making waves in several sectors, with artists and content creators adopting NFTs for IP protection and trading. In digital art, NFT technology has provided an unprecedented ability to content creators so that they enjoy a safe, secure environment where their copyrights are protected. Several large and well-known corporations such as Marvel, Nike, UFC, FC Barcelona, Gucci, and more have adopted and released NFTs, and the trend shows no sign of stopping.

Probable Future Use-cases For NFTs

These are the immediate probable uses of NFTs in the foreseeable future:

· Buying and selling digital art

· Trading rare items and guaranteeing their authenticity

· Providing more autonomy to players in the gaming industry

· Enriching travel and tourism experiences in the hospitality industry

· Helping the fashion sector ensure authenticity and prevent illegal reproduction

· Tokenized game tickets and merchandise in various sports

Conclusion

NFTs are an exciting chapter in the field of blockchain. They will find increased usage in coming times, and those who choose to ride this trend will undoubtedly make excellent profits with a wise investment. However, like every other transaction, people need to take all necessary precautions for maintaining security and follow the best practices involved.

NFTs also have applications in other business areas, like trade, technology, and decentralized finance, besides digital art, videos, and similar products, as discussed in previous chapters. Professionals, including lawyers, engineers, investors, and business owners, can benefit significantly from the use of NFTs. This chapter discusses these aspects in detail.

NFT’s Role In Digital Innovation Of New Products

The traditional economic structure relies on government-issued currencies and securities. Hence, there are limitations on the conduct of commercial transactions and the valuation and exchange of assets. The non-digital finance system can inhibit the creation and affect the fair distribution of economic value. NFTs provide the ideal solution as they play a critical role in digital innovation.

· Social media reputation and behavior enable the valuation and interchangeability of digital assets, thereby accelerating digital business.

· NFTs allow introducing a vast array of new digital products to a new audience.

An excellent example of digital innovation of new products is the rollout of Top Shot Moments by NBA that comprise digital tokens of video recordings of memorable basketball match moments. Thus, the data exchange between NBA and the fan community becomes digital assets that one can easily value. The characteristic features of such a concept are:

· It is possible to digitize any assets and share them on a P2P basis.

· The commercial participants can set the terms and conditions of doing business. Hence, there is no centralized intermediary.

· It introduces the concept of decentralized finance using the Blockchain network.

NFTs Support DeFi Or The Decentralised Finance

One of the prime benefits of NFTs is their decentralization. NFTs work on the principles of decentralized finance where the participants and assets operate on a P2P basis, with the medium of exchange as cryptocurrencies.

· Decentralisation enables the asset creator to capture the value of the digital asset directly and avoid intermediaries.

· NFTs enable the decentralized finance infrastructure to accommodate non-human actors and provide core mechanisms for autonomous agents to conduct transactions.

· It presents an opportunity for business enterprises to monetize previously illiquid assets.

By supporting decentralized finance, NFTs play a crucial role in enabling technology and trade.

How Are NFTs Enabling Technology And Trade

One of the positive aspects of Blockchain technology is the emergence of smart contracts to replace the existing systems of verifying hard copies of documents. Validating smart contracts requires one to have digital signatures.

The primary issue in the era of hard-copy documents is the doubts regarding their authenticity and security. You have security protocols like using special paper, wet-ink signatures, and even holograms, but they do not translate to the digital world.

One such example of the use of NFTs to enable technology and trade is the embedded digital certificate provided by WISeKey International Holding.

What’s There For Lawyers?

With Beeple’s digital art piece sale for $69 million, people’s perception of it started to change as they realized that NFTs offer a chance to earn good money. The digital artists and musicians benefit as NFTs provide a win-win situation for artists and art collectors.

However, there can be copyright infringements, consumer protection, Intellectual property issues, money laundering, and many such issues. Therefore, it presents lawyers with ample opportunities to protect people’s rights and legally proceed against infringements.

Scope For Engineers

Engineers can benefit from NFTs as they enable smart contracts to determine the payments for their services. For example, one could design a smart agreement to pay depending on measurable metrics, like performance and effectiveness. For instance, software engineers can build the contract with a clause that the stakeholder must compensate them based on the code they write. It enables them to earn the right amounts that they are entitled to for a specific assignment.

Investors And Business Owners

If businesses can provide a unique ‘experience’ to the client or customer that can be recorded as an NFT instead of a mere sale, branding and promotion can go a long way. One such instance can be worth many advertisements.

Corporates and large enterprises into innovation and inventions can bank on the NFT concept for patent management. Patents as NFTs protect their rights to the developed products and ideas and make the transfer or sale of patents smooth. IPWe, an organization that works with IBM, has already started working on it, and tokenized patents are poised to make their presence felt soon.

Conclusion

Leveraging fresh digital concepts can help technology and trade thrive in today’s advanced world. However, issues with trust, ownership, the menace of fraud, and many others can be significant barriers. NFTs can be a savior in such situations as they are ideally suited to verify electronic information. They can help reduce the administrative burden of maintaining and checking physical records, thus, enhancing the overall efficiency and bringing innovation to business operations.

NFTs are a potential replacement of traditional non-blockchain event ticketing systems that are characterized by the sale of suspicious or fungible tickets, uncontrolled secondary market transactions, and ambiguous ownership. Here’s how NFTs will impact event experience.

How NFTs Are Going To Change Event Experience

Event ticketing systems are soon to be redefined, and one can see hints of the same already in the growing number of non-fungible tokens (NFTs) circulating among audiences.

The following points suggest how NFTs are going to change event experiences for all:

· Kings of Leon recently made over $2 million from the sale of 12 golden tickets or NFTs stored on virtual vaults.

· These golden tickets promise a lifetime of VIP experience to the buyer in all the Kings of Leon tours in addition to other facilities.

· Though an emerging form of digital asset, NFTs will be a game-changer and transform the event experience for buyers and sellers because it has something of interest for both parties.

· The buyers get the much-coveted VIP entry and time with the artists in an event. On the other hand, the artists or sellers can claim a share of each ticket resale and have close control of or record their fanbase.

From the above discussion, it is clear that NFTs hold great potential for asset ownership management and digital marketing because they provide a platform for the organizers and attendees of an event to interact with each other beyond the limits of a traditional ticketing platform.

Webinar, Conferences, And Sports Events

The COVID-19 induced shift from offline meetings, discussion forums, and other events to online ones has necessitated access authentication to them. Apart from tokenizing digital goods and assets, NFTs can also be used to authenticate or verify access to online webinars, conferences, or sports events at times like these when digital fraud is rampant.

Webinars And Conferences

· Online conferences with break-out rooms and panel discussions can introduce unique tokens using NFTs that give their owners or delegates early access to specific meetings on the schedule.

· They can also include special groups where token owners get to interact with the speakers or resource persons.

Sports Events

· Sports events can have similar authentication and special access features linked to NFTs wherein viewers can have live sessions with the players or view locker room scenes.

· Many people are sports fanatics and willing to spend millions of dollars on complementary facilities that they can experience and brag about. One can utilize NFTs lucratively to cater to their interest in times of the pandemic when viewing matches in the traditional way is not feasible.

NFTs As A Potential Game-Changer For Live Events

Ever since pandemic has restricted life to the confines of one’s home, going live has become the new life. Whenever possible, audiences connect more with their favorite artists, celebrities, sportspersons, or each other now than before. Here’s how NFTs can revolutionize the same.

· Turning these live events into revenue-generating avenues is one of the biggest challenges for artists and public figures that haven’t been able to connect or interact with their fans and viewers physically.

· However, many new business models have emerged with NFTs. For example, King of Leon’s golden tickets for over $2 million.

· The live events industry and new-age digital content creators have transformational opportunities ahead as NFT-led live events promotion, talent management, and ticketing solutions.

Thus, NFTs are a revolutionary digital measure that tech-savvy live event promoters can harness to reap the maximum benefits.

NFTs And Exclusive Virtual Events

Authenticity and exclusivity are the two aspects that will presumably make NFTs a $1.3 billion industry by the end of 2021. From online events and fundraisers to celebrities and artists marketing their merchandise, digital assets, customized videos, or artwork, NFTs have been used extensively in the last few years. Below are two incidents in recent news.

· American celebrity Lindsay Lohan had launched her latest single (Lullaby) in collaboration with DJ Manuel Riva in late March this year. She relied on NFT tokenization to retain property rights over her creation, earning hundreds of thousands of dollars in the process.

· Rapper Post Malone talks of launching an exclusive celebrity beer pong league through NFT. The NFT adapters will get an opportunity to play beer pong against the rapper.

Blockchain Ticketing For Entertainment Venues And Sporting Events

Regardless of whether it is sports events, music concerts, conferences, or other events involving selling and re-selling tickets, blockchain ticketing proves to be an effective solution. It is because it provides security from data breaches and ticket re-selling fraud. When dealing with blockchain-based non-fungible tokens (NFTs) for ticketing, blockchain ticketing assures the required privacy, efficiency, and control over the secondary market for entertainment venues and sporting events.

Conclusion

The event management marketplace has suffered extensively because of the COVID-19 pandemic, and the NFTs, despite the associated uncertainties and risks, are leading to profits in millions. This shows how positively people have reacted to the concept and the potential NFT applications held in the event management marketplace arena.

Certifications are often offered to qualifying candidates in the form of paper or a digital certificate. However, this approach has time and again proven to be inadequate as documents can be easily forged online. Moreover, employers and universities often require replicas, and sending these in paper form is cumbersome. NFTs can help solve issues like these, using the principles of Identification, Authentication, and Authorization.

Identification, Authentication, And Authorisation

Identification, authentication, and authorization are concepts that are often confused with each other. Let us take a look at what they entail.

· Identification: Identification occurs when a subject such as a user claims a particular identity, and the system recognizes this claim as valid. For example, when a password management system asks a user for their login account, they might enter it. The system then identifies if such a user exists or not. In the blockchain world, identification can be associated with the public key of an NFT. This public key uniquely identifies the NFT to the blockchain and its users.

· Authentication: Authentication is the process of proving the identity of a user or object. One example is when a system matches an inputted password with the copy stored in the system. In an NFT environment, authentication occurs when the blockchain verifies a private key with a public key.

· Authorisation: Authorisation is the process of specifying the rights of an identified and authenticated user. For instance, the owner of the NFT has the right to transfer it to other people on the market, sell it, and so on.

NFTs For Licences, Registrations, and Certificates

An interesting use case of NFTs is that of registration, licenses, and certifications.

NFTs enable institutions and employers to access a blockchain for verifying the authenticity of a person’s qualifications quickly. The burden of certification and record checking is thus reduced. Some places have also started issuing blockchain-based formal documents like driver’s licenses, such as Sydney.

Benefits of using NFTs for license and registration include:

· Reduced time for receiving documentation

· Excellent proof of authenticity

· Cheaper than traditional paper-based methods

· Practical and free from errors.

· More efficient, immutable storage of evidence

7.3 Identity Management Using NFTs

NFTs can be used for the identity management of assets that hold value. Some examples include:

· Autographs: Verifying the authenticity of signatures is a challenge NFTs can solve. One famous example is how the first tweet was autographed and sold as an NFT by Jack Dorsey for $2.9 million.

· Clothing Brands: Several higher-end clothing brands such as Gucci have sold expensive NFTs. Gucci sold a Loop video for more than $20,000 and donated proceeds to COVID vaccine access.

· High-end clothing brand Overpriced. debuted its first NFT-linked hoodie, which sold for a record $26,000 USD at auction.

· Movie And Fandom Merchandise: Several brands have created NFTs for selling merchandise. Marvel, for instance, has signed up with Singapore-based organisation VeVe to offer NFT collectibles. The app has 100,000+ downloads and also has a digital token called OMI that users can invest in.

· Sports: Socios, a blockchain fintech provider, has a Fan token offering called Chiliz ($CHZ), with several well-known partners like FC Barcelona, Juventus, AS Roma, FC Inter, and UFC.

NFTs In Certifications Of Authenticity And Ownership In Digital World

One of the most well-known use cases of NFTs is certifications of authenticity and ownership. Christie’s, for instance, sold an NFT-based artwork known as “Every day’s: The First 5000 Days” for $69 million. VeChain has several use cases such as asset authentication, tracking goods, and simplification of product maintenance.

NFTs have all information related to the certification of work, such as the name of the asset, creator, size, medium prints, the title of ownership, and certificate of authenticity.

NFTs Against Copyright Infringements

NFTs can be used to protect intellectual property against copyright infringements. Some tokens such as the ERC-721 and ERC-1155 are used for this purpose.

ERC-721: ERC-721 enables representation for assets such as certifications that are not divisible. In other words, Tokens designed with ERC-721 standards are “non-fungible” in that they are distinct from each other. Assets linked with ERC-721 tokens can have their ownership proven in a secure and immutable manner.

The NFT License defines the right of both the creator and owners of an ERC-721 NFT. It solves the dual problems of:

· Safeguarding the work and ingenuity of creators

· Allowing users complete flexibility and freedom in using their non-fungible tokens.

The NFT license provides a middle ground between the traditional options creators had, i.e., either open sourcing their work or restricting usage rights.

Flexible contracts can be created; for instance, owners can commercialize products made by them with purchased NFT art. It thus allows blockchain developers to create sustainable business models and secure monetization and revenue.

ERC-1155: It allows faster, efficient transfers of tokens in a batch so users can create and transfer multiple NFT assets quickly with the same smart contract. It is more efficient in gas fees and faster while also allowing fungible tokens. For example, game skins (as discussed in chapter 5) may be transferred using these.

Conclusion

NFTs are an exciting arena in blockchain with several applications for trustless and decentralized identification, authentication, and authorization of digital assets. The future will see an ever-increasing use of this technology in related sectors such as IP (Intellectual Property) protection, certifications, and more.

From managing a hotel booking to recording itineraries and luxury experiences, NFTs can provide numerous hospitality and travel industry applications.

The Role Of NFTs In The Travel Industry

The scope of NFTs in the travel industry primarily revolves around the concept of ‘Proof of Travel.’ It is a new-fangled concept that is still in its infancy. Given the irreplaceability of an NFT, a tourist will be able to deal with digital badges and stamp their stay at a particular place forever. The following section discusses this concept in brief.

The Concept Of ‘Proof-Of-Travel’ And NFTs

Proof of Travel is based on one of the primary features of an NFT: irreplaceability. An NFT cannot be replaced, unlike other cryptocurrencies, and hence can be used as a unique identification for a tourist. It can record the travel, the itinerary, and any activity that the tourist thinks is unique. Restaurant owners and hospitality service providers can now connect with outsiders digitally in a much simpler and faster manner.

NFTs In Luxury Travel Space

Luxury travel space has been growing exponentially over the years and is a suitable domain that can take perfect advantage of an NFT. Luxury travel is also a statement, and NFTs can expand this field as an influence. It is more like a tamper-proof way of showing off the places a tourist had visited and excursions during the visit. With a more significant number of organizations accepting payments in cryptocurrencies, the role of an NFT becomes all too important. An NFT in the luxury travel space can be seen as an investment for future travelers. One can also monetize it though that seems a bit far-fetched at the moment.

How Will NFTs Change The Experience Of Hotel Bookings?

In extension to the travel industry, one of the main benefactors of NFTs would be hoteliers. Hotel bookings would be faster and smoother, though a proof of concept is yet to be established. What it envisages is a level of automation and security, yet unparalleled. A traveler can now directly book a hotel of their choice and sign a smart contract. The hotel can provide the key as an NFT, which ceases to function once the stay ends. The arrangement gets saved permanently on the blockchain to use for future references or in case of any dispute. It is thought to be a game-changer for both the hotels and the guests who visit them. However, given the wafer-thin margins that the travel industry plays with, NFTs will take some time to grow in this domain.

What’s In For Customers?

An NFT is designed in a manner that benefits both the customer and the organization or the entity. While it smoothens the entire travel process, right from booking tickets to checking into a hotel room, it also permanently saves the information on the blockchain for future reference. There are a few other benefits too.

· With the involvement of cryptocurrency, the role of physical money is reduced. One would just need a smartphone with an internet connection and can make all the arrangements. The stringent security provided between the wallets is an additional advantage.

· As a smart contract, it will remain in the blockchain forever and can be used as a future reference. Also, being irreplaceable, the digital proof of the travel will be around forever. A tourist will be able to monetize the tour, being the creator.

How Do Hotels Benefit?

The hotels can benefit from NFTs in several ways. The first and foremost would be the smoothening of the entire process of room bookings. A tourist would be booking rooms by signing a smart contract. The hotel, in turn, will provide the key in the form of an NFT. It will cease to function once the contract is over. It will entail fewer human resources and resources to manage guests. It helps the organization save much-needed resources that they can spend on expanding services.

Conclusion

A smart contract also ensures that a guest will not demand anything that has not been mentioned in the smart contract. It would provide a safety net for both the guest and the place of stay. The hotels will also be capable of monetizing guests’ stays and sell them to travelers who wish to be a part of similar experiences in the future. These are just some of the ways NFTs can revolutionize the travel industry in the forthcoming future. In years to come, NFTs could well be implemented in solving other crucial travel world problems, such as issuing passports and visas that are next to impossible to spoof, and being digital, can be replaced much quickly if lost by the user, which provides travelers with the much-required peace of mind.

The popularity of NFTs in art and collectibles have thoroughly been discussed in the last chapters. Besides these, there are other sectors where NFTs are gaining ground, and in this chapter, we discuss one such sector — gaming. Similar to artists, who can gain a lot in the NFT arena, gaming-related NFTs also give power in the hands of the individual consumers, i.e., in this case, the video gamers.

NFTs In The Video Games Industry

In the gaming industry, NFTs can be an even more welcomed concept compared to art and collectibles as these don’t snatch the ownership rights of gaming providers completely. Instead, it allows the gamers to own rights to specific elements in it. And the idea is thought to pave the way for a win-win situation for video gamers and their providers.

Other than the contentious issue of ownership, which would remain a prickly subject for debate, the world of gaming has always been about digital ownerships of collectibles. Art collectors and investors of art are still grappling with the idea of owning an object which is not physical by nature. At the same time, gaming has a possibility of accruing gains for both the game developers as well as the gamers simultaneously.

This Is Why Gamers And Game Developers Are Getting Involved In NFTs

Gamers, game enthusiasts, and game developers have always looked forward to being part of an environment where they would be able to buy, keep, and sell their ware. For instance, in an NFT game, one can unlock special arrangements, collectibles, or characters, to which they can add unique features. These digital collectibles then have the potential of being sold for real-world cash. The more vital or scarce the element(s), the higher the price one has to pay to acquire it. Reasons and opportunities like these are why gamers and game developers are getting involved in NFTs.

Gamers As Investors: The Popularity Of The ‘Play To Earn’ Model Of Gaming

The possibilities of NFT are multifarious. One piece of evidence is the ‘Play-to-earn’ model of gaming wherein gamers can earn money merely through playing games. A recent phenomenon in this area that attracted global attention is that many Filipinos turned to the Sky Mavis’ Axie Infinity game to earn a living during the Covid lockdowns. The game involved gaining a reward called ‘Smooth Love Potion’, which could be converted into cryptocurrency, which could, in turn, be exchanged for real money. This instance is only one example of a larger scenario of this kind. In general, games could allow players to win unique digital tokens and in-game assets tied to their names as NFTs, which could be treated as an asset or investment, as mentioned in the section below.

Game Assets As NFTs (for example, Skins, Cars, Drivers, Guns, Etc.)

Game Assets, for long, have been owned by the game owners themselves, and the gamer who would spend money to buy them had no control over them. However, the moment the game assets turned into NFTs, the entire premise transformed. These NFTs not only gave immutable ownership to the one who bought it but could also now be sold in the real world with transactions occurring in real-world money. The risk of getting banned and scammed is also minimal with NFTs.

The situation was a marked improvement from the earlier scenario when NFTs were still a foreign concept. Gamers would get banned from selling their ware, though a vast market did exist in the real world. Also, the chances of getting conned were high since there was no way of verifying who the ware buyer was. The world of gaming is replete with numerous such horror stories.

Games Licencing And NFTs

There is so much to do and systematize when it comes to IP (Intellectual Property) incorporation. There are quite a few hurdles that would have to be crossed before NFTs can be fully synchronized with IP laws, something DC Comics came to know. One of their creative artists sold NFTs that included characters he used to draw for the employer. The artist earned $1.85 million in return. DC Comics had to issue a warning asking creative teams to desist from such actions in the future.

NFTs will not be an excellent idea for multinational organizations that own many famous and identifiable brands. It may affect their brand positioning and eventual competence.

NFTs In Building Trust Between Corporations And Game Creators

The only way to make the partnership between creators and corporations work is by bridging the trust deficit. While it is true that NFTs have built what can be called a creator’s economy, game corporations have to transform themselves to stay relevant. Thoughtless consumerism has to give way to greater inclusion of creativity. Marketing has to be more creator-focused rather than corporation and money-focused.

Conclusion

The future is bright for the role of NFTs in the world of video gaming. While it will give tremendous power to individuals involved in gaming, one has to wait and see how the transformation would affect the stakeholders and to what degree.

Agon Avdimetaj3 days ago·4 min read

For years, musicians and video artists believed that the internet would revolutionize the music and video industry and allow them to exercise control over their music and make a living out of it. However, the emergence of entities like Napster, iTunes, and Spotify, to name a few, found ways to harness technology and reap the profits that should have rightly gone to the music and video artists. Now, NFTs have emerged as a boon to the artists to help them fight against such disadvantages.

NFTs In The Music And Video Industry — What’s Changing

As large corporations play the middlemen in the music industry, the artists make not more than 12% of the profits from the sale of their music, with the balance going to the former. The pandemic has worsened the situation leaving music artists to wonder why the top 1% of the artists earn 90% of the streaming income, and up to 88% of the profit goes to someone else. Under such circumstances, NFTs have come as a breath of fresh air allowing music and video artists to earn what is rightfully theirs.

· Selling their art as NFT has enabled them to receive up to 50% of the profits.

· It has also enabled their fans to be part of their favorite artist’s projects.

What’s There For The Fans?

By purchasing their favorite artist’s NFTs, the fans benefit as much as the artists themselves do.

· They find innovative ways for being part of their favorite artist’s projects.

· Owning a portion of the creative process ensures that fans do not have to sit on the sidelines and watch their favorite artists perform.

· NFT perks can be in the form of tickets for concerts and exhibition events that allow the fans to get close to their favorite artists.

Why Are Musicians Getting Involved In NFTs?

For a long time, musicians have never received their due because of the involvement of intermediaries in the music and video industry. Getting involved in NFTs allows these artists to earn what is rightfully their remuneration for their hard work.

· By creating NFTs, the artists earn much more than they would ever have imagined otherwise.

· Besides, it allows them to reach their fans directly and earn their admiration.

NFT Impact On Overall Music Industry

The direct overall NFT impact on the music industry would reflect in the following consequences.

· Artists can directly deal with music retailers and sell their NFTs, and thus eliminate the intermediaries.

· When artists start earning what is rightfully due to them, it encourages them to create exclusive content for their fans more artistically.

The Most Compelling Use Case For NFTs — Videos

Videos have the maximum potential to benefit from NFTs.

· They could reintroduce the idea of releasing an exclusive edition where fans will be willing to pay more than for a general release.

· NFTs allow video makers a new route for marketing their content by removing the intermediaries who take a significant share of the profits.

· NFTs liberate video creators from the corporates who control vast amounts of data storage, like AWS, Microsoft Azure, Google Cloud, etc.

NFTs And Video Creators

While entities like YouTube allowed video creators to create and distribute content freely, not every creator could monetize it in a meaningful way. As a result, they started making more money from affiliate marketing and brand sponsorships rather than from YouTube ads.

Video NFTs propose to change the scenario by allowing the creator to generate unique content and monetize it for their real fans, allowing YouTube ads and lining Google’s deep pockets.

How Are Movies And Streaming Industries Affected By NFTs?

Streaming platforms like Netflix and large-scale cloud storage providers, such as Google Cloud and Azure, decide what gets published and what does not.

As a result, a high share of the profits goes to the intermediary corporations.

Video NFTs can transform the scenario by decentralizing control and allowing the content creator to deal directly with their fans. It can affect the streaming platform’s earning capacity considerably.

What’s Next?

The industry is at crossroads now and can go anywhere. At present, cryptocurrencies and blockchain can solve the problem of royalties not reaching the actual owners. There is a potential for NFTs to be widely accepted if they benefit the artists and their fans properly.

Conclusion

NFTs are still in their initial stages. Not many people know the concept and would rather pay for something physical. Despite this fact, there is potential for adoption and improvement. The music and video entertainment industry are among the ones set to undergo a revolution with NFTs in the forthcoming future.

Every aspect of human life seeks and changes with modernity, utilizing the fruits of technology and innovation for the better. Art is no different. With the advent of blockchain and NFT, the traditional art industry is poised for a revolutionary change. And there are immense benefits to gain when one takes the first step into the NFT digital art sphere from the conventional art market.

Art, Artists, And Art Collectors In A Traditional World

Art, artists, and art collectors have a deep connection among themselves in the traditional art world. Art collectors serve as an encouragement to the artists to create more artwork. However, many times, the art collector and the artist do not know each other. Instead, they transact through an intermediary, such as art galleries or auction houses. The process takes place in the following way:

· In a traditional world, the artist has to approach the art galleries to sell their art.

· Similarly, the art collectors have to purchase their desired artwork from the art galleries.

· The art galleries have a cut either way. They collect their share from the sales of artwork.

Consequently, the artists have to pay a percentage of their sales to art galleries, and they earn less than what they deserve for the hard work they put in.

In most of these transactions, the art galleries decide the pricing. Hence, the artist does not have any control over this aspect either.

The Future Of Conventional Art With NFTs

As NFTs become popular in the future, many conventional artists will be moving towards digital art that solves the above issues for them in the following ways.

· The best aspect of NFTs is that they provide ownership, which is unique and non-refutable.

· The artist does not have to approach the intermediaries for selling their NFTs; this can directly be done through an exchange.

· Furthermore, the art resale may automatically fetch a royalty for the original artist (in this case, the owner of the NFT).

With NFTs, the artists earn their income without having to share huge brokerage fees with intermediaries.

Today, digital art is challenging to sell because of the potential to create innumerable copies, which affects their uniqueness and hence, value. NFTs can help resolve the problem.

All these factors mean that art and NFTs have a tremendous future together.

How To Value NFT Artwork?

Now the question is how to value a particular NFT artwork. The basic principles of assessing the worth of an NFT artwork are the same as those used for traditional art creations. However, there are a few additional factors with NFTs due to the designs’ digital nature and blockchain possibilities.

· Authenticity: Original artwork always demands a higher price. It could be challenging to determine authenticity in traditional paintings, but not so in NFTs because it takes care of the provenance factor beyond doubt.

· Scarcity: Again, the market forces come into play when deciding on the NFT artwork pricing. The scarcer the artwork, the more the demand, which reflects higher pricing.

· Artist’s Reputation: The more popular the artist, the higher the pricing. People like to purchase artwork created by reputed artists and personalities.

A couple of other factors also affect the digital art NFT pricing.

· The medium of the artwork is a crucial aspect. For example, a 2D artwork will have a different price than a complex video artwork with customized sound effects.

· The digital skill levels of the artist and the amount of hard work put in for creating the artwork is another defining factor.

Thus, the market forces typical of today’s digital world decide the NFT pricing for the artwork.

How Can Traditional Artists Benefit From NFTs?

Traditional artists have to face several disadvantages as long as they stay in the conventional art sphere. However, if they dare step into the realm of NFT, they can benefit in various ways.

· The artist gains more with the absence of any brokerage payment as NFTs do not involve any intermediaries like art galleries, auction houses, etc.

· NFTs determine the authentic owner of digital art. Every subsequent sale has to refer to the previous transaction before its confirmation.

· The artists can set a royalty amount for each sale. Hence, it can be a lifetime income source.

· Direct dealing with the art collector can help the artist decide on mutually agreeable pricing, commensurate with the effort put in by them for creating the artwork.

How Can Art Collectors Benefit From the NFT Ecosystem?

Just as artists benefit from NFTs, art collectors too can benefit from the ecosystem.

· NFTs are trendy, and owning one can add to their enigmatic status. Thus, owning NFTs is a status symbol as the collector becomes one of the pioneers associated with an emerging concept.

· Purchasing NFTs allows art collectors to benefit from preferential tickets for art shows and exhibitions by the artist in the future.

· They get an opportunity to enter the inner circle of their favorite artists as they deal directly with them.

Conclusion

A switch from the traditional art market to the blockchain and NFT-driven digital art world has enormous benefits for both artists and art collectors. With eye-popping news headlines every other day associated with the NFT digital art collection transactions, it wouldn’t be wrong to say that the revolution has just begun. As all emerging fields have proved so far, the pioneers will reap the most and make the most valuable transactions in the sphere of NFT, too, before it becomes a household name.