The Blockchain and NFTs are Hampered by Reality

According to Sandra Ro, the CEO of the Global Blockchain Business Council, the world of non-fungible tokens (NFTs) is only just getting started and extends far beyond the field of art.

Ro presented a talk at the TNW Conference this year that offered an insider’s view on where we are with NFTs and where we are going. Although she had some considerable commercial potential, the answers she offered were not particularly compelling.

From NFT paintings to digital injections, everyone can discover something of interest here.

In regard to the technology known as the blockchain, Ro claimed that “every social or physical entity can now have a unique identifier and proof of ownership that is provable on the blockchain.”

She admits that the market is “very complex, as all new things are,” but she believes that the unique character of that personally verifiable token and the possibility to “inject economics” into this circumstance represent the true value that is being supplied.

She provided examples of fractional ownership as well as straightforward buying and selling. In the second case, a holder of a token designating a yearly membership in a sports club has the option of selling the unused portion of their membership to a subscriber who wants to join the club.

It’s not exactly the worst idea ever. Breaking an annual contract can be quite difficult in many nations. If this streamlines such processes, I am all for it. For contracts created before January 2022 in Germany, for example, a three-month notice or proof of leaving is necessary.

Advertisement

As a catalyst for value creation, NFTs, on the other hand, have the potential to go well beyond transactional memberships.

Thanks to the use of NFTs, fans of many sports can get a better view of the action.

Ro pictured a future in which NFTs would enable fan communication, complete with special benefits like insider VIP access and the chance for advertisers to achieve “greater stickiness” within their communities.

Ro claims that participating in sports and NFTs can earn one a sizable sum of money. I believe it to be reasonable.

While Ro acknowledges that “there are numerous intermediates, and they are still figuring it out,” I believe that the adoption of NFTs in the setting of stadium sports will be significantly more difficult.

Wearable technology allows fans in smart sports venues to interact with athletes and listen to sports commentary. These stadiums also offer cutting-edge fan apps that cater to a variety of markets, including the food and beverage sector and the market for transportation tickets.

Even if they’ve already done it successfully in an existing product, it seems like a lot of work to get these many verticals to function together.

How can we move from crypto aficionados and early adopters to mainstream apps that bring together huge, diverse groups, then?

Advertisement

Would individuals employ unconventional trading techniques?

Ro is upbeat about the potential of mission-driven DAOs and gives the example of the Ukraine.
NFTs are shown as examples of digital art in the National Financial Token Museum (MetaHistory NFT Museum), a blockchain-based account of Russia’s invasion of Ukraine. The Ukrainian Ministry of Digital Transformation founded it.

NFTs are also being used by many people in Ukraine as a way to generate revenue. I think the vast majority of people lack the digital auditing skills required to distinguish between legitimate accounts and fake ones, even if the majority of them have sincere intentions.

Aside from the potential for fraud, there are other issues with cryptocurrency security to think about, in addition to the obvious huge carbon impact they have.

Unfortunately, there are numerous causes for alarm in this.

On the other hand, the Bitcoin network has never, in Ro’s opinion, been successfully hacked. She does, however, agree that it takes a lot of effort to maintain that degree of security. When she asked, “What are you ready to live with?” she was implying either a safe cryptocurrency or a minimal environmental effect.

She also agrees that not all dangerous actors can be blocked. Furthermore, it might be challenging to erect safety obstacles without inhibiting innovation. She admits that accredited investors are “a very specific socio class who don’t most need to make money,” but additional regulation might limit ownership of NFTs to those investors who meet the qualifications exclusively.

NFTs, in my opinion, have the potential to be helpful in a number of applications. However, I am not optimistic that we will witness widespread acceptance or the mainstreaming of their techniques of earning wealth.

Advertisement

I get the feeling that a lot of the same people are becoming wealthy, with a few intriguing outliers thrown in for good measure. JDL Street Art provides one such example (also at the TNW conference). She broke a record by selling artwork for €2.9 million in bitcoin the year before, and she donated one-third of the proceeds to a nonprofit organization.

Nevertheless, any action always has a beginning place. Even while I have my reservations that money will inevitably follow, the fundamental objectives of NFTs through blockchain technology, which include connecting the physical and virtual economies, may well come to pass.

Read More About NFTs Here