10 Ways You’ll Use NFTs in the Future
Posted September 01, 2021
As we saw yesterday, it’s likely NFTs, in their current form (as digital art), are in a bubble.
But, at the same time, NFTs aren’t going anywhere. The JPEGs we see today are just the first generation of this newfangled technology.
Where do I see NFTs going? Lots of places.
Here’s the shortlist:
Event tickets/Proof of Attendance NFTs: In the near future, every event ticket will be an NFT, some of which will include digital art. POAP, a platform for minting digital collectibles, allows you to hand out attendance badges as NFTs during events.
Supply chain logistics/transparency/fraud protection: VeChain (VET), a crypto company with huge potential, is working on supply chain solutions using NFTs. Partnerships include Walmart China, Shanghai Gas, H&M, BMW, Republic of Cyprus, and others.
Music: With NFTs, music artists can cut out the middleman and get paid royalties instantly each time someone listens to their song online. NFTs also solve the massive digital ownership issues that currently plague the industry. Mintbase and Rarible have some exciting projects in the works on this front.
Movies: One of my favorite projects, a broadband sharing software solution called Theta (THETA), was recently granted a patent for integrating NFTs into Digital Rights Management (DRM) systems. The entertainment industry has been trying to crack this nut for decades. Theta’s solution aligns all the right incentives: viewers get paid by the network to watch videos legally (as they share redundant bandwidth in the background with other users). Viewers are happy. Entertainment companies are happy. Theta is happy. Win-win-win.
Blockchain domains: Having a blockchain domain is like having a decentralized Godaddy, WordPress, and Paypal account that you own. (Best part? No annual fees.) For example, I own chriscampbell.crypto. Once I integrate wallets into it, anyone can send crypto to me using that domain, without needing to fumble around with complex addresses. Even better, I can build a website that can’t be taken down in the same way traditional, centralized websites can. The leader in this space is Unstoppable Domains.
“Digiphysical” goods: In the near future, when a teenager buys a pair of sneakers, it will come with an NFT that can be worn in his favorite video game. This concept can be applied to any physical product. This is the arena of “digiphysical.” Metafactory is one company leading this charge.
Cosmolocalism (Global design, local manufacturing): NFTs will become how individuals ensure their digital property rights. At some point, we’ll use NFTs to protect and sell proprietary information and designs. Moreover, eventually, you’ll be able to buy 3D printer designs of your favorite products -- encased inside NFTs -- and get them printed/manufactured near your home. To ensure digital rights, any proprietary aspects of the design will be encrypted inside NFTs and will destroy (or “burn”) themselves as they’re being printed, ensuring you can’t sell the design after use (double-dip) or copy it.
Shared ownership (fractionalization/tokenization): Asset tokenization reduces barriers and will attract new investors through fractional ownership. It also allows individuals to increase portfolio diversification and spread out their risk by co-owning multiple uncorrelated assets at once. (This is legendary trader Ray Dalio’s “Holy Grail” strategy of investing.) Today, there’s no way to “tokenize” more intangible things, like ideas and future potential. If young kids out of college could tokenize their future earnings to pay off their student loans, for example, I’m sure they would. Soon, they will. Or you could tokenize future profits of a book project… art project… or business venture. With tokenization, it’s much easier to crowdfund and crowdsource virtually anything, worldwide. Asset tokenization, which will probably be the first wave of this era, is just one way.
All of these trends will experience their own hype cycles. If you tuned in yesterday, you know how I got into the NFT space long before the hype cycle. The best strategy is to find the “Series 1, Card 1” of each space (ideally, for a pittance). Find the “Genesis Story” of each facet and you’ll likely find the hidden gems. Follow the story.
What’s the next big hype cycle to come?
The next hype cycle will likely move out of digital art and into crypto gaming.
The gaming industry is perfectly positioned for the rise of crypto. NFTs, distributed computing, and tokenization allow gamers to participate, own and create in-game assets, and earn money while playing.
Gamers spend thousands of dollars on this stuff already, the demand for in-game tradeable assets has existed for decades.
1.] Gaming is the amalgamation of sound design, animation, art, storytelling, programming, and engineering.
2.] Gaming is the world’s biggest sport.
3.] The gaming world is champing at the bit for what crypto offers (in the form of betting markets, play-to-earn, and NFTs/digital assets).
The low-hanging fruit isn’t all picked.
But this will be a fast-moving and dynamic space. There are a lot of great “pick and shovel” plays that require far less speculation. (Example: Enjin.)
While China is cracking down on gaming, the rest of the world is about to see a gaming renaissance.
Stay tuned for more.
Keep on your radar: China has recently cracked down on gaming. Tencent, the largest gaming company in the world, has seen a massive drop in its stock price. As of writing, it seems to have bottomed out. Given crypto gaming appears to be an impending hype cycle, Tencent is especially well-positioned. If it makes the right partnerships in the crypto space, its stock could see screaming highs during the crypto gaming hype cycle. Keep it on your radar.
Managing editor, Laissez Faire Today
P.S. In case you missed it: I’ve got some important news. It’s been almost a decade since I began writing these digital leaves. With too many adventures to name -- including, but not limited to, getting locked in a former CIA officer’s trunk in Vegas, going to the hospital in Bangkok, dodging boulders in Guatemala, building and shooting guns in Utah, attending raucous psychedelic and crypto conferences in Prague, farming goats and sheep in Ohio, and living out of a backpack as a “digital nomad” -- it’s been one heck of a journey. I regret to inform you we are shutting down the Laissez Faire Today e-letter effective on Friday, September 10th. But it’s not all bad news. I’m going to be working more closely with James Altucher, collaborating on his Altucher Confidential daily newsletter. With our forces combined, Altucher Confidential will be LFT in hyperdrive -- jampacked with powerful ways you can stay ahead of the curve and live a freer, more abundant life. I want YOU to come with me. Next week, we’ll give you more details on how to grab access to this daily letter -- absolutely free. Stay tuned.