...By Judah Olanisebee for TDPel Media.
NFTs: More than Just Digital Art
Despite the market downturn in 2022, nonfungible tokens (NFTs) are still gaining popularity and expanding their reach beyond digital art.
From tokenizing investment assets to game avatars, the technology has an array of applications.
At the NFT.NYC 2023 conference, Cointelegraph’s team learned about the latest NFT developments and how they are shaping the digital world.
NFT Games: The Beginning of a New Era
The gaming industry is seeing an increase in NFT-based projects that seek to address blockchain-based challenges such as interoperability.
NFT games are maturing, and companies and developers believe that they will pave the way for a world where real life and games will blend seamlessly.
Attendees at the conference discussed the power of owning and trading digital goods as NFTs, and how they could be used across different platforms.
Tokenizing Real Estate: A Promising Application of NFTs
NFTs can be used to tokenize investment assets such as real estate, which is one of its primary targets.
Ripple is partnering with other companies that are developing marketplaces to provide tokenized NFTs for real estate, making it more accessible and liquid.
Japan is leading the way in the tokenization market in Asia.
Decentralizing the Economy with NFTs
While many projects and blockchains are decentralized, their infrastructure relies on centralized ecosystems, exposing them to security and censorship risks.
NFTs may play a crucial role in achieving real decentralization, enabling anyone in the world to control and monetize their personal information, activities, or creations.
Regulatory Uncertainty for NFTs
Legal experts pointed out that NFTs are facing the same regulatory uncertainty as the broader crypto industry, particularly in the United States.
The major question in the space is whether NFTs can be considered securities.
Venture firms such as Pantera Capital are relying on recent enforcement actions from the Securities and Exchange Commission to gauge regulators’ views on digital assets until the industry gets the clarity it needs.