WHAT IS INTERACTIVE NFT 2.0? A NEW BREAKTHROUGH IN THE NEXT-GENERATION NFT TREND

NFT 2.0 is a consumer-facing technology

The current generation of NFTs is not suitable for mass consumption

NFTs open new doors into the world of traditional art and collectibles, while allowing consumers to connect with their virtual assets in ways previously unimaginable. However, the NFT market is starting to saturate and will require push and innovation to continue growing.

The onboarding process for clients is difficult, instability hurts real fans, and the relationship between artist and fan is distorted. There is too much dissonance between the price of NFTs and the value they can bring to consumers, and many collectibles suffer a severe demand shock when they fail to implement their roadmap.

The introduction of interactive NFTs may usher in a new era of immersive art worlds, but what exactly are interactive NFTs and how do they work? This article will give you some basics about interactive NFTs.

The core customers of NFTs are increasingly aware of scams and frauds, making them less likely to buy new collectibles. While falling transaction volumes may seem like a sign of doom, the reality is that NFTs need a big enough cleanup to weed out get-rich-quick seekers and reinvigorate the real builders of the space. In the down cycle, resilient organizations that weather the storm by transitioning from Web2 to Web3 will thrive. Agencies and platforms that are poorly positioned will be eliminated, but those that are ready for an email-like transformation will maximize high-margin, high-value projects while capturing long-term revenue streams.

It makes a big difference whether you are a builder, potential user or investor in the field. This market will grow and develop rapidly. If you blink, you might miss it!

What is an interactive NFT?

Interactive NFTs are NFTs that allow users to interact with them in some way. Unlike NFTs that cannot be purchased and owned today, users of interactive NFTs will have multiple applications that strengthen the connection between users and their NFTs.

In other cases, interactivity might involve using NFTs in games, such as “Ethermon,” which allows users to battle Pokémon-like monsters in a virtual world. Other interactive NFTs, such as those found on platforms today, allow collectors to buy single-tier NFTs and change them to their liking. The layers can also change to reflect changes in day and night cycles.

CryptoKitties is a great example of a unique interactive NFT project. You can “breed” two NFT cats together in CryptoKitties to create a new cat. The crossbreeding of two CryptoKitties not only produces unique and random new NFTs, but also makes users feel like they are part of the project.

encrypted cat

With the success of CryptoKitties, Metaverses like Decentraland and CryptoVoxels plan to start building and developing interactive NFTs. Users can buy and sell NFT parcels, plan events, develop infrastructure, trade for profit, and pretty much anything else you can think of in this metaverse realm. It’s not just a standard digital asset you buy and hold; it enables you to continuously develop, build and create value. Users now have more ways than expected to interact with the NFT Development Company and blockchain ecosystem.

Current NFT environment

After more than three years of foundation and development, the NFT ecosystem has grown to include many different components, resulting in a dramatic increase in the size of the market.

NFTs have popped up in the cryptocurrency space in their short history, with over $17 billion in transaction volume by 2021. By 2026, this sum is expected to reach $147 billion. Even more surprising is that this volume is owned by less than 400,000 holders, so the volume per user is $47,000.

With the rapid rise of the industry, NFT has undergone earth-shaking changes since its birth. For example, CryptoPunks, minted for free in 2017, sold for $11.8 million at Sotheby’s last year, securing safe bet status. A few years later, Yuga Labs, the parent company of the Bored Ape Yacht Club, acquired Larva Labs, the company responsible for Punks, for an undisclosed sum.

NFTs now have a market cap of $27 billion.In addition to this, various difficulties of the current generation of NFTs have also begun to appear.

Saturation: New NFT-related projects are released almost every day, each containing thousands of individual NFTs. While they are attractive and add value, the market is close to saturation.

Choosing a decent NFT to buy now can be a challenge for collectors and investors alike, like looking for a needle in a haystack when you don’t know which NFT has high value and potential. long-term profitability

Low liquidity: The liquidity of NFTs is particularly poor; most NFTs are currently in a situation where no one is buying. This is a significant risk for those who hold them.

Lack of usability: Most NFTs are now based on Ethereum, with high initialization fees and low prices. However, most of these NFTs are inactive, especially those in the arts. You have no choice but to store it in a wallet, hang it on exchanges waiting for buyers, or speculate on NFTs. However, due to a lack of liquidity, NFTs are difficult to buy and sell, causing investors to bury their wealth.

Therefore, it is quite reasonable to develop interactive NFTs to solve the above problems. There are already a few projects in this area that have received a lot of attention from the user community.

Different types of interactive NFTs

Basic Interactive NFT

This is a very interesting new type of NFT where the properties of the NFT change depending on how the user interacts with it.

For example, the CryptOrchids project allows users to interact with NFTs in the form of various rare plants. To get a tree seed, you must first create your own ERC721 token. Then you need to water it for a period of time every week until it blooms or the plant dies.

NFT flowering plants

This requires constant interaction and monitoring with your NFT flowering plants from seed to maturity and value generation. Blooming CryptOrchids can be freely traded on OpenSea until they die.

Interactive NFT Games

Blockchain gaming paired with NFTs is clearly no stranger to crypto users and remains one of the biggest trends today and provides significant revenue for businesses in the space.

The NFT gaming market is rapidly growing and dynamic, and when consumers can interact with the NFTs they own, it speaks to their huge appeal. Notable initiatives in this area include: Axie Infinity, Star Atlas, Thetan Arena, Cyball, and more.

Interactive NFT x DeFi

Recently, some DeFi projects have started adding NFT applications to their platforms in different ways, and users have responded well. Interactive NFTs in the DeFi space not only increase their usability, but also provide multiple ways to generate passive income, connect to platforms, and attract new DeFi users.

E.g:

Orca allows users to stake NFTs to get ORCA tokens from the project.

Zapper asks users for NFTs when they engage in certain tasks. This NFT number can then be used to create higher level NFTs. The higher the NFT level, the greater the incentive for the owner.

How Interactive NFTs Work

Like all other traditional NFTs, interactive NFTs reside on the blockchain. Most of them rely on Ethereum smart contracts, but so do other blockchains. Smart contracts are used to track the unique elements of the NFT and allow holders to adjust certain elements.

For example, if a project was designed to let you “level up” a purchased character and then sell that character at a higher “level” than you paid for, a smart contract might be the answer. Keep track of these “new levels”.

Additionally, the uniqueness and ownership of interactive NFTs are public and can be verified by anyone using the blockchain. Users can fully trace the source and transaction history of NFT Genrator in their hands, whether the original files are JPG, MP3, GIF or other files.

Investment Opportunities in Interactive NFTs

Search for potential interactive NFT projects

Essentially, interactive NFTs are a small part of the NFT industry, and there are already projects underway to develop it. Similar to investing in regular projects, you can search for projects in games, metaverse, etc. Need NFTs but no tokens yet. Then, if available, engage with the platform to increase your chances of retrospective engagement.

Also, when working on projects that already include interactive NFTs, consider projects that are solid and have a clear development roadmap and NFT adoption plan.

Invest in Interactive NFT Platforms

The problem with NFTs is that they are illiquid. Although interactive NFTs were created to address this weakness, it is still in its infancy, and no one knows what the future of this trend will hold.

Investing in blockchain infrastructure that supports interactive NFTs seems like a more prudent approach.

DareNFT is a well-known interactive NFT platform project today. The project aims to improve the current NFT protocol and promote the use of NFTs in daily life, thereby increasing the connection between NFTs and reducing ownership risks.

DarePlay is a GameFi platform that includes a launchpad for non-NFT gaming blockchains, IGO services, Rent-to-Earn, and a Lease-to-Earn marketplace for NFT gaming products, the initial offering of DareNFT.

The evolution of interactive NFTs

The greatest value of an interactive NFT is not in the NFT itself, but in how it enables other entities or systems. Improved user-friendliness and proper interactive NFT applications will help create many beneficial effects and are great tools for engaging users in projects.

Zapper’s MAU (Monthly Users) increased tenfold after the launch of Zapper Quests & NFT Season 2. Launching NFT staking on the Orca platform has also created a buzz in the Solana ecosystem, helping the project grow significantly in TVL and users. according to.

Interactive NFTs in the field of art

Interactive NFT Development Services are also starting to make waves in the art world. On May 8, 2021, the world’s first programmable classical music “Betty’s Notebook” from Verdigris Ensemble Choir in Dallas, Texas was auctioned at Async Art, a blockchain platform digital art auction. The world’s largest NFT fund, Metapurse, received a cost per share of $215,989 (equivalent to 56.56 ETH). The auction raised over $375,000 for Verdigris Ensemble and broke Async Art’s record for a single NFT sale.

Betty’s Notebook is just the beginning of the use of interactive NFTs in the music industry. With musicians like Grimes, Eminem, and 3lau already showing interest in Interactive NFTs, it’s hard to say how far this trend will go.

Clearly, the appeal of NFTs is still there, especially now that users can do more interesting things with their NFTs. From a broader perspective, interactive NFTs and their potential applications are undoubtedly still fertile ground for those who understand them and know how to invest!