The State of Non-Fungible Tokens (NFTs) and Their Future
In episode 65 of the Hashing It Out Podcast, Jana Bertram, Head of Strategy at RARI Foundation, explores the state of non-fungible tokens (NFTs) and their future. Speaking to host Elisha Owusu Akyaw, Bertram acknowledged the decline in NFT trading volumes but argued that the technology remains significant.
Return of the NFT Bull Market?
Bertram explained that the NFT bull market, which brought widespread attention to digital collectibles, is likely to return in a different form. "The NFT bull cycle already happened," she said, adding that while the hype has diminished, NFTs are still crucial for empowering creators and enabling innovative use cases, such as real-world asset tokenization.
One of the key challenges still plaguing the NFT space, as highlighted by Bertram, is the debate over royalties. Some NFT marketplaces have made royalties optional in recent years, significantly impacting creators’ earnings. Bertram noted that this shift has forced the industry to reconsider how to balance creators’ rights with market dynamics.
The Importance of Royalties
Royalties play a critical role in ensuring that creators are fairly compensated for their work. In the NFT space, royalties have been a contentious issue, with some marketplaces opting out of implementing them altogether. This has led to a loss of revenue for creators, who rely on royalties to sustain themselves.
However, Bertram argued that royalties are not just essential for creators but also for the health of the NFT ecosystem as a whole. "If we don’t have a robust system in place for creators to earn fair compensation, it will eventually lead to a decline in quality and innovation," she said.
Scalability and Affordability
The discussion also hit two major touchpoints in the Web3 space: scalability and affordability. Bertram pointed out that advancements in blockchain infrastructure have made NFT transactions more cost-effective, addressing one of the barriers that previously hindered adoption.
Related to this issue is the concept of scalability. As NFTs continue to gain popularity, it’s essential that they can be scaled up to meet demand without sacrificing speed or efficiency. Bertram noted that current solutions are not yet adequate and emphasized the need for further research and development in this area.
Beyond Digital Art and Collectibles
Looking ahead, Bertram envisions NFTs expanding beyond digital art and collectibles with a bigger emphasis on practical applications such as identity verification, ownership records, and even healthcare documentation. However, she noted that public perceptions of NFTs remain a hurdle, with the term often associated with speculative trading and financial losses.
While the market may have cooled, the underlying technology continues to evolve, promising broader applications and more inclusive participation in the years to come.
The Future of NFTs
Bertram’s vision for the future of NFTs is one where they become an integral part of our daily lives. She envisions a world where NFTs are used to verify identity, record ownership, and even provide healthcare documentation. This would not only make life easier but also provide new opportunities for creators and innovators.
However, there are challenges that need to be addressed before this vision becomes a reality. Bertram emphasized the need for further research and development in areas such as scalability, affordability, and public perception.
Conclusion
In conclusion, NFTs may have experienced a decline in trading volumes, but they remain an essential technology for empowering creators and enabling innovative use cases. As Bertram noted, "The NFT bull cycle already happened," but it’s up to the industry to evolve and adapt to new challenges and opportunities.
Listen to the full episode of Hashing It Out on Cointelegraph’s podcast page, Spotify, Apple Podcasts, or your podcast platform of choice. And don’t forget to check out Cointelegraph’s full lineup of other shows!
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