The Rise of NFTs: Unlocking Digital Value

In this in-depth blog post, we will delve into the various aspects of NFTs, including their history, technical workings, and real-world applications. Join us as we explore the exciting world of NFTs and their potential impact on the future of digital assets.Reducing environmental impact

Reducing the impact that cryptocurrencies and other technological developments have on the environment is critical.

Thankfully, there are certain cryptocurrency schemes in place that allow for smaller environmental footprints, including Solana and Tezos. NFT management schemes can also help transition away from full decentralization, enabling more efficiency.

Additionally, major cryptocurrencies like Ethereum are moving away from outdated and inefficient proof-of-work (PoW) algorithms. They're switching to proof-of-stake (PoS) algorithms instead.

Because of these changes, the rise of NFTs isn't likely to contribute as negatively to the environment in the future.

Standardization of ownership rights

NFTs are incredibly varied when it comes to the types of rights that people own when they purchase them; this is similar to real-world contracts. Buyers need to read the fine print in contracts before purchasing NFTs to determine exactly what they're getting.

Some people may only gain the right to claim that the digital signature of a file is theirs as opposed to the actual file. In other instances, buyers may have full ownership of the NFT.

As the NFT market matures, more complex and clearer contracts will come about, facilitating the standardization of ownership rights.

Going mainstream via low-cost NFTs

NFTs are still luxury items because of the expenses required to create them on the blockchain.

Today, it generally costs around $100 USD to create and transfer a single NFT. This is due to the inefficiencies seen with the main blockchains out there on the mainstream market.

Over time, the costs of NFT creation and ownership are likely to decrease as these inefficiencies phase out, either due to the transition away from PoW or toward non-blockchain solutions. In the process, NFTs will likely no longer be exclusive to the luxury goods market.

Over time, the industry will see more low-cost NFTs that denote the ownership of any type of digital good.

Digital rights management is coming, whether you want it or not

Many people dislike the concept of digital rights management (DRM) for a number of reasons. But it's an inevitability in the rise of NFTs.

Specifically, DRM will help protect the rights of NFT owners. Owners of NFTs will want to make sure their rights are enforced to preserve the value of their creations.

DRM probably won't appear in web browsers for simple images. Still, copyright holders will implement DRM as NFTs become more ubiquitous representations of:

• In-app purchases

• Digital replicas of physical products

• Virtual clothing

• Other types of digital goods

This isn't new to the online world, either.

In the past, YouTube didn't enforce copyright on its platform. But it eventually needed to develop a system that would protect the rights of owners. This led to the implementation of an automated system that would detect and address copyright infringement.

In these cases, the copyright holder may choose to collect advertising revenue for the video content if another person uploaded it. Alternatively, they can take the video down.

This same model will apply to NFTs that people post on major online platforms, including social media channels.