Where are NFTs Heading Towards?

China’s recent ban on privately mined cryptocurrency caused widespread panic in the crypto industry. After some investors rushed to sell crypto assets, we saw the market fall down a cliff. The bitcoin price decreased by almost 50% from the historic high set in April this year. The drive towards carbon neutrality and the volatility of cryptocurrency market have pressured regulatory bodies around the world to further regulate the crypto industry.

Where are NFTs heading towards under such circumstances?

As the bridge connecting the blockchain industry and the real world, NFTs can digitally represent aspects of numerous goods and services in the real world. NFTs are not harmful to the environment as their associated revenue is not tied to mining. Additionally, NFTs target more of a mainstream user as opposed to a crypto enthusiast due to the capability of enabling the perfect combination of physical assets and blockchain technology. It is likely that NFTs will become popular across all industries.

NFTs: Connect the Blockchain and Physical Assets

NFTs have been transforming the market landscape of the art, gaming, cultural and creative industries since the first application in the art world, which significantly changed the related business models and ecosystems. From 2020 to 2021, the trade volume of online auctions of NFT artwork has climbed to new heights with increasing attention drawn to it. By the first quarter of 2021, the total trade volume of the NFT market had exceeded 1.5 billion dollars, with a month-on-month increase of over 2627%.

Even so, the potential of NFT to be applied to the real world remains untapped. The low liquidity of digital artwork makes it difficult for NFTs to achieve large-scale commercial use. As the digital world evolves rapidly, more items will be presented only in a digitized form, which may create a great number of new use cases for NFTs in the digital world.

The more closely NFTs are intertwined with the real world, the more rapidly NFTs will grow in adoption.

How should NFTs get closely intertwined with the real world?

Imagine tokenizing “rights & benefits” into NFTs. As the world's first DEX for utility NFTs, Chair connects “rights & benefits” and the NFT concept for the first time and makes it possible for any of us to be the owner of these “rights & benefits”. NFTs are no longer limited to artworks or game cards. They can be so much more, representing financial assets such as real estate, cars, stock shares, digital identities such as ID cards, genetic sequences, etc. and data rights around anything from internet traffic, IP, a song, a photo or software source code... There should be no boundaries to “rights & benefits”. Through NFTs, we can digitize “rights & benefits” that could not be digitized before.

Everyone can mint an NFT on Chair from their “rights & benefits” with one simple click and also trade or auction NFTs. This can lower the entry barrier for creating utility NFTs, thus increasing the transaction frequency and liquidity of NFT, and achieving the privatization and free circulation of multiple types of NFT assets.

Chair is providing people with the bridge between “rights and benefits” and digital assets, and bringing about a possibility for large-scale commercial use of NFTs. This will become apparent as the NFT market expands.

The technical application of NFTs and industrial development are surging. Although the market is still in its early stage, the use cases and application experience it brings are unprecedented. A new era of commodity and industry digitization may begin here, in the same way that the first steam train in 1925 marked a goodbye to the era of carriages.