NFTs must be backed by real value – Crypto on vc.ru

Few will argue with that that the NFT market is now overheated. According to NonFungible, between September 2021 and May 2022, NFT sales fell by 92%. Add to this the general bearish trend in the crypto industry right now and we get a rather sad picture. , which is why in the mass consciousness the technology has become associated with virtual value.

In fact, NFT technology is nothing more than a blockchain certification system that can be use to mark any asset – real and virtual, or tokenize rights. However, if you link non-fungible tokens to real assets, then there are difficulties with logistics or transfer of ownership within the traditional legal infrastructure. It is much “easier” to trade pictures and in-game assets. This was thought during the 2021 crypto bull market and… shot themselves in the foot, undermining the confidence of the general public. The situation is aggravated by the increasing cases of insider trading .

Another viable approach is to use NFT as a ticket to real events – concerts, lectures , tourist vouchers, etc.

Third option is to use NFT to secure copyright on designs directly related with production. Examples are molds for jewelry or 3D models of buildings on which real houses will be built, etc.

Of course, the implementation of such opportunities will require large investments, contracts with logistics and legal services, but this is currently the only way for NFT technologies to go beyond the virtual realm.

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