NFT Beyond Hyper: How Non-Fungal Tokens Can Change the Global Economy – Review

It starts in 2022 and NFT’s focus doesn’t stop, to the point where at the beginning of the year the word NFT is among the most searched on Google. The fact that celebrities like Neymar have bought NFT from boring monkeys and the amounts involved in these transactions, which are far from what mere humans can afford, and arouses everyone’s curiosity as to why they are contributing to this movement.

In this text I will try to leave the view of the tree and look at the forest, which is the departure from the advertisement that now surrounds the NFT, and I focus on the transformative power that this technology has and in many ways already exists. making it a reality.

Rather than having non-fungible tokens, NFTs are creating a shortage in a digital world of abundance. Everything on the internet is plentiful. Think about how many stories you produce and see on Instagram every day, how many websites, text, videos you’ve seen on any topic that has interested you in the last few months; go find an explanation of NFT and, in addition to the texts I have listed here, and in this article itself, you will find thousands of explanations. It’s a massive world with big scale gains and where all the actors are acting in that direction.

With the introduction of NFTs, there is an opportunity for scarce goods in this environment, which opens up a wide range of possibilities.

That said, NFTs start with the art market. And that’s where the first point comes from. Why would anyone buy an item that can be easily copied?

Well, who hasn’t seen a copy of a painting by Monet, Van Gogh or an artist on a wall? And does that prevent you from seeing the original when you go to the museum? Has that ever changed your desire to be original? Art NFTs follow this logic.

The Mona Lisa can be copied thousands of times, but the original we all know is in the Louvre Museum in Paris. Having a lot of copies doesn’t change anything and we continue to follow the same path with NFT.

But NFTs are not just for art. They serve to represent a scarce commodity in the digital world and that’s where I see its enormous potential.

Starting with real and tangible assets. Think of the huge number of assets that you can represent in the digital realm, assuming you can put them as a single asset.

The place where you live, for example, can be represented by an NFT based on it. An NFT of an apartment or house. A high resolution photo from your last trip may create an NFT. An unusual phrase that you say and want to save for later can also create an NFT.

That is, almost everything we have and produce in the real world and that is the only good thing that is capable of creating an NFT. That’s a huge change in itself, but the next one is that I think it’s a special change.

As we spend more and more time online, we are more likely to have goods in this world. Be it cryptocurrencies, Fortnite clothing, game weapons or any other digital asset you can imagine.

These assets are not representations of the real and tangible world of the digital world, but assets that exist only in the digital world. Bitcoin (BTC) is not tangible. Itaú’s action (ITUB4), yes. There is no secure paperwork or certificate for each other. A few years ago, Itaú’s stock certificates could also be held at home, but that hasn’t existed for decades.

The potential of NFT is to turn those assets that exist only in the digital realm into assets that do not need intermediaries to verify their validity.

Itaú’s share record is a good example. It is a complex system of surveillance, exchange and mediation that verifies its digital authenticity, which involves various intermediaries and costs. A one-share NFT can bring almost all the features of this system, but in a distributed way and without the need for multiple intermediaries, which is also reflected in lower costs. Equal features with fewer intermediaries, global reach, and lower costs.

Imagine buying the shares of the company you want on a global scale without the need for a broker. NFTs are already making this possible today, in 2022, from a technology perspective. Barriers to failure are regulatory and cultural. I see that it’s a matter of time before that happens.

Another good example of the potential of these assets is music NFTs. If a singer or band has a certain NFT for their music, they can “rent” it to anyone who wants to listen to it in a decentralized way, without the need for intermediaries like Spotify, which now accounts for a large share of revenue.

Systems that guarantee the distribution of rights or patent payments, such as in the case of Brazilian music ECAD, do not become necessary. In addition, the interaction between the artists and their audience will be closer.

The main point is that the technology that was the first use case of Bitcoin, the blockchain, is entering its exponential phase, with the possibility of removing intermediaries from systems dealing with fungible goods (currency, commercial goods, transaction goods). money, etc.), but also non-fungible goods (apartments, music, clothing, etc.). And the number of non-perishable goods we have in the world is thousands of times higher than the number of perishable items.

NFT is one of the cornerstones of this new way of interacting with the digital world and is the foundation of WEB 3.0 and metabertso initiatives.

In other words, what starts out as a game to buy digital cats (cryptokitties) or monkeys (bored monkeys) is now going to be a wonderful test environment.

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Podcast: Fintechs and New Investments

To learn more:

Interview with FESQ, a digital artist broadcast by NFT
Reverse, the solution of the Brazilian Metaberse
Article “4 Cryptographic Issues to Look at in 2022”
Article in verse
Grayscale report

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