NFT Winter: How Will It Affect Decentralized Digital Commerce (DDC)
In these present times, there are currently thousands of NFT projects being developed on different blockchain networks. Solana, Tron, Cardano, and Polygon just to name a few are some of the newest ecosystems to bring NFT’s to the world. Ethereum, for one, is currently leading the NFT craze with the most NFT projects to date regardless of its high gas fees.
I am a firm believer that NFT’s will be the vehicle to bring mass adoption to the blockchain. Why? There are several reasons why I have made my own personal conclusion.
For one, the NFT smart contracts such as ERC 721 and ERC 1155, bring utility to the way things are transacted on the blockchain and bring rare and unique ways to approach what I call Decentralized Digital Commerce, e.g.DDC.
Two, NFT’s are considered non-fungible, meaning, they are not securities or commodities — they are simply digital assets that cannot be interchangeable with one another. Again, providing a unique way to transact within DDC. I will explain more about my idea regarding DDC’s in the future.
Lastly, three — they provide proof of ownership and authenticity with the power of the blockchain.
OpenSea, Mintable and many other NFT marketplaces have scaled massively during the Covid-19 pandemic lockdown. Many new enthusiasts entered this space, a space that is technically not as new as one may think. Furthermore, a large amount of people became NFT creators at a rapidly growing pace in late 2020. On the opposite end of this outcome, there aren’t enough NFT buyers as there are NFT creators. This is a clear indication that we are barely scratching the surface of the popularity NFT’s will bring.
Although I strongly believe my views in regards to the future of NFT’s and blockchain, I also because of history, see that NFT’s will become over saturated and eventually we’ll see the bubble burst which is necessarily not a negative thing.
Similar to the Internet and the dot.com boom and burst in the mid 1990’s-early 2000’s, the Internet and website craze went through the same thing ICO’s (Initial Coin Offering) companies went through within crypto and blockchain in 2017 leading the bubble to burst which was followed by a crypto winter in 2018. This crypto winter lasted about 2 years which means the market was stagnant, frozen if you will. Bottom line, history tends to repeat itself. We just have to look at the market’s behavior. What did we see after the dot.com and ICO bubble burst? A clean slate to properly scale these types of projects within new technologies.
NFT’s will be the way we transact everything in the future. Your plane ticket, your medical records, your car purchase, your entertainment, your bills and much more.
There is a high probability we will see a spike that will mirror a bull market for at least another 16 months, maybe longer, for NFT’s as I write this. When I mention this to many individuals some tend to express the opposite, that the NFT space will not go through this because of its hyperbolic movement.
One thing is still apparent, NFT’s could be the gateway to finally provide massive adoption for the embrace of blockchain technology and scaling the way Decentralized Digital Commerce moves with the help of NFT’s and blockchain. Whether you are an NFT platform developer, business executive, creator or buyer, we all can agree that NFT’s bring something that web 2.0 could never bring — scalability, authenticity, unique utility and a decentralized approach. Let’s revisit this is 16 months.
