NFTs: More Than Just a Trend
NFTs are not always given proper consideration, especially with the rise of AI and content creators stealing the attention, but not everyone is quick to dismiss their value
Animoca Brands’ Yat Siu believes that NFTs can safeguard ownership in the era of AI.
NFTs, the oft-derided younger sibling of cryptocurrencies, are often dismissed as a passing fad. However, according to Yat Siu, the chairman and co-founder of Animoca Brands, the rising influence of artificial intelligence (AI) and content creation is precisely why NFTs are becoming increasingly important in the world.
Before you scoff at this claim, let’s take a moment to hear Yat Siu out. Animoca Brands is a company that specializes in NFT collections, blockchain products, and wildly popular games. They have collaborated with renowned brands and personalities such as Disney, WWE, Power Rangers, The Walking Dead, Formula E, and even Snoop Dogg!
In a recent episode of ENBLE’s Chain Reaction, Siu explained that NFTs serve as “digital stores of culture that we can then transform.” This can range from something as simple as asserting ownership online to safeguarding intellectual property.
One of the key advantages of NFTs is their potential to unlock new avenues for monetization. Traditional paths to monetization often involve significant costs, making it difficult for creators to earn money from their content. Siu gave the example of a teacher in Venezuela earning a measly monthly salary of $10 or $15. With an NFT, they can create educational content or assets that can generate a lucrative side income. Creating a legally binding contract might be prohibitively expensive, but with an NFT, they can easily create one in a single transaction for less than $1.
“We’ve seen that in effect, where teachers in these countries have started making assets. They’re making a small yield, and then investors from all over the world have said, ‘I’m going to buy this, I can make more value out of this,’” Siu elaborated.
The power of NFTs goes beyond just the financial aspect. They empower individuals to protect and assert their intellectual property rights. Siu highlighted the case of a dancer on TikTok who creates a viral dancing trend. Without proof that they were the original creator, monetizing their creation would be impossible. But with NFTs, they can establish ownership and enjoy the benefits of their creation.
“Web3 is so important, especially given the fact that AI is becoming such a prevalent part of our lives. Yet, we have no control over the ownership of any of it,” Siu emphasized.
Thanks to blockchain technology, anyone can create a trademark or copyright claim on something they have created, Siu explained. This provides individuals with another layer of protection for their rights, enabling them to defend their creations effectively. It’s a game-changer for creators all around the world.
Of course, not everyone will grasp the complexities of NFTs and related technologies immediately. However, Siu believes that over time, more accessible paths will emerge, allowing this vision to become a reality for everyone.
It’s worth noting that the whole NFT movement takes on a deeply personal dimension because it involves money. Siu pointed out, “In this sense, it feels like digital capitalism sort of comes home in a very big way.”
Interestingly, Siu mentioned that in the US, he has observed fairly anti-capitalist movements, particularly among young people. This has led to negative sentiments towards the finance industry and, by extension, the crypto community. However, Siu finds this ironic because web3 users were the ones who initially rebelled against the established systems to create an alternative financial ecosystem.
He believes that on-chain dynamics, which are fully auditable, are the best way to verify information. Siu asserts, “That’s why I think blockchain technology will help solve many of the world’s biggest problems that are incoming.”
So, the next time you come across NFTs and consider dismissing them as a mere trend, think again. These digital assets hold immense potential for creators, providing them with new ways to earn money, protect their rights, and transform culture in ways unimaginable before.
Q&A: Addressing Your Burning Questions About NFTs
Q: Are NFTs only relevant to artists and creators? A: Not at all! While NFTs are often associated with art and digital creations, their applications go far beyond that. NFTs can be used by individuals from various industries and fields, such as educators, musicians, writers, and even influencers on social media platforms.
Q: What is the environmental impact of NFTs? A: It’s true that the energy consumption of blockchain networks supporting NFT transactions has sparked concern about their environmental impact. However, it’s important to note that the wider cryptocurrency industry is actively working on developing more sustainable solutions, such as transitioning to greener energy sources and improving network efficiency.
Q: What are the risks of investing in NFTs? A: As with any investment, there are risks involved. NFT values can be volatile, and market bubbles can burst. It’s crucial to conduct thorough research, understand the market, and assess the long-term potential before investing significant sums of money into NFTs. Additionally, be cautious of scams and counterfeit NFTs by buying from reputable platforms and artists.
The Future of NFTs: Impact and Developments
NFTs have undoubtedly disrupted the digital landscape, opening up new possibilities for creators, entrepreneurs, and enthusiasts. As the technology continues to evolve, we can expect significant impacts and developments in various areas:
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Art and Culture: NFTs have revolutionized the art world, enabling artists to directly monetize their digital creations and reach a global audience. The concept of digital ownership and provenance is also transforming the way we perceive and trade art. Expect further exploration of digital art formats and the integration of NFTs into art exhibitions and galleries.
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Education and E-Learning: NFTs have the potential to reshape the education sector, allowing educators to create and sell unique educational content directly to students. This empowers teachers in financially constrained regions while fostering innovative learning experiences worldwide. We can anticipate the emergence of specialized platforms and marketplaces for educational NFTs.
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Intellectual Property and Licensing: NFTs offer a transparent and immutable way to establish ownership and enforce intellectual property rights. This is particularly crucial in the digital realm where content can be easily replicated. As more creators embrace NFTs, we can expect an evolution in licensing models, creating fairer systems and enabling artists, musicians, and writers to earn a sustainable income.
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Digital Identity and Virtual Realms: NFTs can play a pivotal role in shaping digital identity and virtual ecosystems. They can serve as tokens representing personal avatars, achievements, or even virtual land ownership. As virtual worlds become more prominent, NFTs will become the currency for establishing authority, reputation, and uniqueness within these realms.
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Environmental Sustainability: As the popularity of NFTs grows, so does the concern surrounding their environmental impact. The industry is actively seeking solutions to reduce the carbon footprint of blockchain networks and improve energy efficiency. Expect the integration of greener technologies and the adoption of eco-friendly practices to create a more sustainable NFT ecosystem.
In conclusion, NFTs are here to stay, and their impact will only continue to expand. From empowering creators to transforming industries, these digital assets are reshaping the way we perceive and value digital content. As the technology matures and new developments emerge, it’s essential to stay informed, embrace innovation, and leverage the opportunities presented by NFTs.
References
- Animoca Brands’ Chairman on NFTs and their growing importance
- Chain Reaction: Yat Siu discusses the role of NFTs
