Are NFTs hyped or here to stay?
by Florian Ramsbeck
Crypto, Blockchain and NFTs are hot topics currently dominating our business life. There is hardly a day that goes by where one of these three buzzwords is not featured in the IT or Finance news. We at adorsys, are also passionate about this topic and see a lot of potential in these technologies. That’s why we form partnerships with other players in the market, support university projects and encourage our staff to support and join new prototype projects or by getting accredited certifications.
As exciting as these new products are, we still need to find a good business case for it. Business Case? you might ask. ‘Just see how much the Bored Ape Yacht Club project was gathering`- you could argue very well.
Yes, that is right, the ROI of this project is the ultimate goal of any CFO on this planet, but we should ask ourselves how sustainable this kind of business is and what did you actually buy for the millions of dollars you invested?
During my research I found out that legally, you just move crypto currency from your wallet to another one, and have a pointer in the blockchain set into relation with your wallet address. You did not get the copyright transferred and if somebody decides to change the image behind this pointer, you also can’t do anything about it.
Luckily, there are ways to overcome this tricky situation, e.g. by building your own digital identity and NFT environment, so that you as a person or company can ensure the correct handling of copyright and royalties with your name or brand. While such a setup will lower your reach of potential buyers to your existing network and customers, it will also accelerate the trust in your NFT.
Ok, as we can now agree that it’s possible to monetize on NFTs, who could be your possible target group? Again, I did a little research and asked my wife: ‘Honey, what do you know about NFTs?’
Her response: ‘Aren’t NFTs those pixel thingys, which cost a fortune and the nerds are crazy about?’
Her background is non-technical and I gather from her reply that while tokens have been finding their way into everything, they still remain a rather mysterious topic for the non-techy users.
Knowing that this blog post is far from any scientific study, confronting myself with the topic NFT brings me to the following conclusion:
For NFTs, there are many sustainable applications such as fundraising or digitalization of assets (just to name the two which I like the most), but there is still some work to do in clarifying legal parameters and establishing a good reputation within the non-IT world.
Tune into the podcast to get a headstart
If you are new to cryptocurrency or are interested in how crypto and NFTs are transforming local businesses into global businesses, our Co-COO Andre dropped use cases during a podcast with Agiledrop.
In the podcast, they take a deep dive into the two related digital trends – cryptocurrency and NFTs – as well as blockchain and decentralized technologies.
Tune in to understand what the hype is all about, and why it has the capacity to disrupt traditional financial systems.