The rise of the nonfungible token (NFT) has been a sight to behold, with the market seemingly garnering an increased amount of mainstream traction with each passing day.
Another way to gauge the impact that NFTs have had on the global economy is by looking at the diverse range of artists, celebrities, musicians — basically just about anyone, at this point — that have adopted this technology. For example, thrash metal pioneers Megadeth recently became one of the latest adopters of NFTs, allowing supporters to purchase unique collectibles that are officially endorsed by the band.
Related: How NFTs, DeFi and Web 3.0 are intertwined
NFTs need a more decentralized environment to thrive
As the nonfungible token market continues to thrive, it stands to reason that more and more people will continue to move towards the use of highly decentralized blockchains that offer a high level of data transparency and flexibility to their users in terms of trading NFTs, especially when compared with centralized solutions such as Rarible, OpenSea, Binance NFT, etc. A decentralized database can provide users streamlined access to a data delivery network that ensures a high level of protection from data breaches, network failures and performance troubles — all issues that currently plague the global NFT ecosystem in a big way.
Related: The role of decentralized networks in a data-abundant, hyperconnected world
On a technical note, it should be pointed out that while most NFTs today have been built atop the Ethereum network, the ecosystem is currently facing some serious congestion issues as well as problems related to high gas fees.
The future looks bright for NFTs
With more and more money — be it retail or institutional — entering the NFT market with each passing day, many experts believe that this space will fairly quickly transform into a multi-billion dollar industry, whose use cases will spread far beyond the scope of just art and music ownership.
Related: Art reimagined: NFTs are changing the collectibles market
Also, it stands to reason that, in the future, we might see NFTs being used for a wide range of everyday payment/transaction purposes — such as buying clothing, shopping at supermarkets, etc.
