The actual value of NFTs remains to be determined

It is 2021.Super Bowl Champion Tom Brady is starting an NFT company, Christie’s is Explanation CryptoPunks to everyone, the Saturday night scene is create Regarding the jam of NFT, buzzer with Mark Cuban I am advocating the use case of NFT-however, I am the CEO of a company that helps users safely store their non-fungible tokens, and I still believe that the actual value of NFT remains to be determined.

It is important to back up and remember this. Although we seem to know NFT all the time, the opposite is true. Until this year, NFTs are not only a novel idea that will never appear in cable news, but their use cases are still being studied in the blockchain industry. Although the recent hype is interesting, I believe that the current iterations of NFTs are far from the revolutionary potential that they can truly unleash the game-changing rules for the entire industry.

related: How NFT, DeFi and Web 3.0 are intertwined

What makes NFT different from Bitcoin

NFT is different from all other use cases of cryptocurrency. Bitcoin (Bitcoin) Is considered an alternative store of value. Blockchains such as Ethereum, Cardano and Polkadot help developers unlock utilities for various DeFi projects through the blockchain. On the other hand, NFT is a uniquely generated token that uses the Ethereum blockchain to express the ownership of digital assets in a way that does not change over time.

related: Who is DeFi? NFT is the new hot star on the encrypted block

From the retired professional wrestler The Undertaker to Lindsay Lohan, everyone is pushing their own NFT to take advantage of this trend, which feels more like a Ty Beanie Babies hype than a revolutionary technology. Once the trend stabilizes or the bubble bursts, there is only one worthless title certificate left, which begs the question: why not just right-click and “save as” to make a copy without spending $69 million?

related: When the dollar meets the hype: the biggest NFT hits by celebrities

The first form should not be the last form

I’m joking about the current state of NFT, but when I think about what NFT will develop into in the next ten years, I am very excited. The ability to have unalterable ownership or protocol records on the blockchain has great potential to affect so many industries. In addition to the current NFT iteration, some of the most exciting use cases include:

  • real estate: Imagine you are going to buy a house in the near future, instead of tedious paperwork and the process of communicating back and forth with the bank, you can simplify this process by exchanging ERC-721 (standard-based NFT tokens). On Ethereum) from the original owner to you.
  • Permits and records: Opening a bank account, renting a house, transferring car ownership, or trying to buy cold medicine at a local pharmacy-all of these need to be effectively verified with ID documents and certification documents. On the contrary, what if you could verify your license and records as NFT on the blockchain?
  • Tangible goods: Even in the future, NFT can help us claim ownership of tangible goods and return power to victims of theft through verifiable ownership. Imagine someone has stolen your bicycle or the priceless jewelry handed down from your family. If you can link the ownership of these items with the NFT on the blockchain, the true owner of the item is undeniable.

related: The rise of NFT is bound to be accompanied by further decentralization

Even this year Oscar is joining NFTThis is even less than half of the use case. Entertainment copyrights, game assets, etc. are now also being developed in DeFi.

In the final analysis, NFT is fun and a fundamentally good idea. However, when money and status are the two most important factors driving the value of something, the industry must take a deep breath and avoid keeping people away from innovation before truly revolutionary use cases emerge.Now people are willing buy The memes of $500,000, although I think they miss the true value that NFT must provide, I just hope people stay and see what NFT can really do.

This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should research on their own when making a decision.

The views, thoughts and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Kosara Hermachandra He is the founder of the non-custodial wallet MyEtherWallet (MEW). Since 2015, MEW has been the leading wallet interface for the Ethereum blockchain. Today, MEW provides convenient and secure access to the entire Ethereum ecosystem, including DApp, DeFi, etc.