Join thousands of AI enthusiasts and experts at the Learn AI Community.

Publication

Latest

When the NFT Hype Dies

Last Updated on May 24, 2022 by Editorial Team

Author(s): Tim Cvetko

Originally published on Towards AI the World’s Leading AI and Technology News and Media Company. If you are building an AI-related product or service, we invite you to consider becoming an AI sponsor. At Towards AI, we help scale AI and technology startups. Let us help you unleash your technology to the masses.

Thriving ideas led by digital assets

The NFT community has been around merely for a couple of years, yet we have seen the community explode over these blockchain-based digital assets.

They have certainly attracted a fair amount of attention. My guess as to why lies in the decentralization and transparency principles of the blockchain network, ownership tracking, and the tightly built communities.

NFTs today

Yet, pretty much all we have seen so far are funny-looking monkeys and overhyped promises. That is not all these digital assets have to offer.

That’s cool. What you need to understand is that we have seen a similar trend both with the rise of the Internet and Cryptocurrencies. Let me show you a graph representing the user growth of the Internet.

Image by Author

At this point in time(2022), about half of the world’s population is incorporated in some way through the Internet.

We can break down the rise of the Internet into the following 3 phases:

  • Phase I: The Selective Group: a very tight group of people could envision the break of the Internet Saga back in the ’80s and ’90s. It was led by the first computer software companies, such as IBM ( and the Watson Engine).
  • Phase II: The Tight Community: the virus spreads to a unit of enthusiastic developers and idealists who secure prosperity for the newly minted way of human interaction. Inventors back visionaries when forming the Internet. This is the era of Bill Gates, Steve Jobs, Mark Zuckerberg, etc.
  • Phase III: Availability: the Internet finds itself being made available to the majority of people. Applications serve to ease our everyday lives.

When it comes to NFTs, we are currently in Phase II.

Phase I was built mostly around minds like Satoshi Nakamoto and Vitalik Buterin. They laid the grounds for what would later become known as the Web3. The graph below represents dApp/Web3 applications built by month.

Image by Google Trends

As of right now, the blockchain, Defi and NFT applications are being developed at an exceedingly high rate, connecting ideas to platforms and platforms to users.

Photo by Shubham Dhage on Unsplash

The Future And Why It Matters

  • Ownership: each NFT holder is immutably also its owner. Your NFT can serve as a ticket to certain events, and holdings, much like a physical ticket would.
  • Exclusivity: the thriving communities allow the NFTs holders to be granted opportunities either within the Web3 world or the physical one certain benefits they can utilize.
  • Transparency: since all deals/contracts between entities on the blockchain are transparent due to smart contracts, one cannot forge or withheld any information. Additionally, real-world contracting is a logistic nightmare.
  • Industry alternatives: many industries have found themselves more suitable for Web3, either it is because connecting people in a decentralized and trusty manner ensures trust, or because it cuts out a chain of intermediaries that you simply don’t need.

Conclusion

Be patient. Trust the process. Invest in the thriving Web3 creator economy and seek to find new solutions to existing problems.

Create beyond the imaginable!

Connect and read more

Hey, before you go. If you liked this article and would love to read some more content, I encourage you to subscribe to Medium for only $5 and earn yourself a membership. Follow for more!

Feel free to contact me via any social media. I’d be happy to get your feedback, acknowledgment, or criticism. Let me know what you create !!!

LinkedIn, Medium, GitHubGmail

7 Blockchain Companies To Keep an Eye Out In 2022


When the NFT Hype Dies was originally published in Towards AI on Medium, where people are continuing the conversation by highlighting and responding to this story.

Join thousands of data leaders on the AI newsletter. It’s free, we don’t spam, and we never share your email address. Keep up to date with the latest work in AI. From research to projects and ideas. If you are building an AI startup, an AI-related product, or a service, we invite you to consider becoming a sponsor.

Published via Towards AI

Feedback ↓