Research on Web3 economy and NFT development trend
From Web2 to Web3
New ways to shape the future are being eagerly explored, using blockchain innovation to lay the foundation for the future of the WEB3 Internet and create a more inclusive and less biased decentralized web for all players and users. At the heart of Web3 is a decentralized and token-based economy, such as non-fungible tokens (NFTs). Web3 is the evolution of the Internet, reimagining how users control, own and monetize their creations, online content, digital assets and online identities.
Compared with WEB2, WEB3 has many advantages: more advanced semantic web technology, more user-friendly and real-time marketing, better application experience, users have more private and secure data assets, search engines are driven by artificial intelligence, and more connectivity Well, peer-to-peer networking, personalized browsing, etc. The worlds of WEB2 and WEB3 will further converge in the coming years, unlocking the mass market potential of blockchain. With the rapid rise of the web 3 digital product market, the number of companies, entrepreneurs, artists and celebrities experimenting with web 3 digital products has skyrocketed. Companies such as Budweiser, McDonald’s and Adidas have launched their own NFT series, while Nike has entered With the acquisition of RTFKT Studios, innovation around NFTs will play a key role in this new internet.
NFTs make Web3 a reality
NFTs are unique digital assets with verifiable ownership. It can be a piece of art, a game project, a PDF, or even a tweet. When a creator mints a digital asset NFT, an encrypted token is generated during the minting process that includes the digital signature of the wallet that generated the token. This provides future collectors with proof of ownership stored on the blockchain. It also offers creators a new way to develop and sell their work directly to users or buyers, bypassing traditional middlemen. As WEB3 gains acceptance by users and adoption by businesses, NFTs are changing the future of the decentralized internet in core areas such as real estate, content creation, gaming, online communities, concerts, and other interesting use cases.
NFT and digital real estate
With the development of WEB3, virtual real estate has become a powerful use case for NFTs. According to market research, the global housing market is expected to grow from $3.386112021 to $374.106 billion by 2022 at a CAGR of 10.5%. Assuming that part of the market is cost-effective in the future, this will unlock the huge potential of blockchain in the industry. Blockchain technology enables the sale, mortgage, and lease of land, buildings, and other tokenized properties, as well as the existing real estate industry, potentially making them a viable and more attractive investment option in the future.
Another core aspect of the application of NFTs in digital real estate is real estate leasing. For example, Tokenized Property Rentals enables individuals who cannot afford virtual property or have no permanent need to rent virtual property for a limited time through related Web3-based NFT platforms such as Double Protocol. Rental agreements like Double are creating a highly mobile marketplace for virtual real estate, allowing players to own, lease and mortgage their virtual properties, including short-term rentals known as Airbnb. This can provide a viable income stream for real estate investors who can lease, lend or mortgage virtual property at an agreed cost at a specified time without the services of a broker or agent.
Web3 game economy
NFTs are rapidly changing the gaming industry by bringing the WEB3 gaming economy to the forefront. In traditional games, in-game items purchased by users are bound to a specific game world, and the one-time investment is non-transferable. In contrast to traditional games, using NFTs in a Web3 gaming environment allows users, rather than game developers, to control their in-game assets. Players can buy items in-game, sell them to other players, and even transfer them to other compatible games using blockchain technology. This innovation has spawned game modes such as Play-to-Earn, Move-to-Earn, Learn-to-Earn, etc., providing a new economic model for gamers to earn valuable assets while playing blockchain games.
NFT drives the Web3 creator economy
The staying power and massive transaction volume of the NFT asset class is changing the way creators enter the space. WEB3 and NFT provide strong support for content creators by establishing a direct link between creators and their fans, effectively eliminating the traditional collectivization and centralization model and providing them with a new way of income. Content creators can use NFTs to commercialize their digital art by assigning monetary value to their work and selling it on specialized marketplaces. This gives content creators full control over their work and income, as well as the financial incentive to create more content. NFTs can also be used for non-profit purposes, such as providing access to museum art exhibits.
NFT application in online communities and events
The application of heterogeneous tokens as “membership passes” to digital communities is also the latest evolution of NFT use cases. Ownership of NFT personal data atlases such as CryptoPunks and Bored Ape Yacht Club becomes part of the community built by the owner.
Additionally, NFT-powered tickets are now used to grant members passes to exclusive, invitation-only events and concerts around the world. Members are free to manage, transfer and renew their subscriptions without third-party intervention. NFTs are rapidly gaining popularity as a way to access exclusive live events and parties. Because NFTs can provide immutable proof of ownership on the blockchain, they are ideal for solving major problems in the active ticketing industry, such as ticket counterfeiting.
Finally, it’s worth noting that the current iteration of NFTs is not designed for mainstream consumption. The entry threshold for NFTs is not easy for consumers, and the crazy price fluctuations are hurting real fans and distorting the relationship between artists and fans to a certain extent. There is a mismatch between the price tag of NFTs and the value they can offer consumers, and many collectibles have faced a severe demand shock due to their failure to implement a roadmap. NFTs need a major shakeup to weed out short-term speculators and more appropriately incentivize the true builders of the industry. In the context of the bear market, in the transition from WEB2 to WEB3, institutions and platforms that fail to seize opportunities and do a good job in risk control will be eliminated, while projects and companies that can stand the test will flourish and maximize profits. Capture long-tail revenue streams. The web has been iterating at breakneck speed, and the past has seen a shift from plain text Web1 to multimedia hosting Web2. With the gradual adoption and transition to WEB3, the Internet will undergo even greater changes, completely changing the way users interact with the Internet, and in the process, enterprise adoption will also put NFTs at the forefront of the Web3 economy.
