Bryan Ritchie, President and CEO, SIMBA Channel
When NFTs first entered the market, they were seen as the sports trading cards of the future, with NBA Top Shot dominating the headlines. Before long, traditional and digital artists caught on, and suddenly NFTs began to infiltrate the world of fine art and the walls of Christie’s auction house. As NFTs have evolved, they have filtered into mainstream culture and are now used to represent exclusive fan experiences offered by digital collectibles and token fan clubs. Recently, we’ve even seen NFTs enter the gaming space, where they’re being leveraged to advance the concept of play-to-win, allowing video games and asset-gathering to be seen as a one-time job. full.
While these use cases present a resounding success for the entire blockchain industry as sports fans, movie buffs and art fanatics buy into the cryptocurrency ecosystem, there are a large community of interested participants who consider the NFT space inaccessible to outsiders.
With that in mind, a variety of marketplaces, aggregators, software platforms, and creators are calling for increased NFT accessibility. Without altering the heart and soul of the NFT ecosystem that has driven crypto adoption among so many new communities, these game changers are opening up access to NFTs by paying increased attention to buying and selling processes. sales, authoring and typing structures, and most importantly, privacy and security enhancements.
The growth of Fiat purchases
One of the biggest barriers to entering the NFT market is the need to buy into the cryptocurrency ecosystem. Although the headlines may read, “digital artist Beeple sold an NFT, titled “Everydays”, for $69 million,“More often than not, these famous NFTs are purchased with mainstream cryptocurrencies, such as ETH, rather than fiat currency.
The crypto-on-ramping process can be quite cumbersome, especially for those with little or no technical or crypto know-how, often referred to as “outsiders”. Which wallet should I use? What is MetaMask? How to buy tokens?
Marketplaces, such as Nifty Gateway, are addressing this challenge through the implementation of fiat buying, which means that NFTs can be purchased with fiat currencies, such as the US dollar, eliminating the need for engage with cryptocurrencies. Additionally, Coinbase and Mastercard recently announced a partnership that will allow shoppers to use their Mastercard debit and credit cards when purchasing NFT on Coinbase’s upcoming marketplace.
Such moves by market leaders show the industry’s attention to simplifying the NFT buying and selling process, providing access to an entire digital ecosystem previously vetted by crypto experts.
NFT creation adjustment
While buying fiat may create a smoother process for NFT buyers and collectors, there are still concerns about the user-friendliness of creating and minting NFTs on some of the major industry platforms.
When choosing to create an NFT, issuers must first choose the blockchain they intend to rely on and then the marketplace they wish to use as a “location” for the sale. While these decisions may seem rudimentary to those familiar with the broader crypto ecosystem, to those unfamiliar with crypto these decisions can lead to complex information rabbit holes, deterring an interested person or entity from go forward.
In order to combat this, an increasing number of blockchain and Web3 companies are developing so-called “custom white-label NFT solutions”. Specifically aimed at companies and brands looking to create their own NFTs, these white label solutions are tailor-made to meet the needs of an NFT issuer, taking into account their budget, technical know-how and, above all, their brand image and their activity. Needs. By tackling these typical entry barriers alongside an educated and experienced partner, businesses and brands are able to not only issue their own NFTs, but also increase their crypto knowledge in a low-risk environment.
Beyond simplifying the complexities of NFT minting, crypto companies are also looking to reduce the costs associated with custody of NFTs. OpenSea, for example, offers a free keystroke tool, ultimately eliminating the upfront cost of gas that NFT transmitters are supposed to pay. In order to stay competitive, markets are continually reducing their gas fees, knowing that they can eliminate entry routes for those looking to invest a smaller amount of initial capital in the digital collectibles market.
Increased privacy of digital assets
Beware, some free tools and competitive fees have recently encountered privacy issues and fraudulent claims.
In January this year, OpenSea revealed that “over 80% of NFTs created for free on OpenSea are fraud or spam”. And in February, an NFT collector was tricked into giving a group of hackers control of their digital art, leading to their collection being liquidated for over half a million dollars.
While companies have made strides in re-evaluating the ease of purchasing and creating NFTs, there is still no definitive solution to improve NFT authenticity, storage, and privacy.
Integrations with privacy-focused partners have allowed some NFT participants to initiate more secure and robust methods of accessing NFT data, essentially enabling the search and accumulation of sensitive NFT data without compromising the privacy of the information. . By doing so, companies are able to confidently store NFTs on these platforms, knowing that the NFT data may be searched by third parties, but not replicated.
While these partnerships have proven successful, they have yet to go mainstream, and as a result, NFT privacy remains a major barrier to widespread accessibility.
What the future may hold
So who are the foreigners?
In most cases, these “outsiders” are individuals seeking to collect digital assets in the form of an NFT. Additionally, “outsiders” can take the form of a company or brand looking to capitalize on the growing NFT market. Yet some of the most important “outsiders” are the various industries that have not fully embraced the wide variety of use cases offered by NFTs.
In more traditional industries, NFTs are widely misunderstood and are generally seen as confusing and risky. Healthcare, government agencies, and supply chain are just a few of the industries where NFTs are not widely used and yet offer considerable application opportunities.
For example, health data can be minted as NFTs so patients can know where their data is going, how it is being used, and especially if it is being accessed without their permission. Patients, through the use of NFTs, could potentially monetize their data and create an ancillary revenue stream.
Government agencies can leverage NFTs to track the global movement of goods, services, and even funds between internal and external departments, increasing attention to privacy and security and, in some cases, eliminating the need local fiat currency exchanges.
NFTs also have the potential to disrupt the traditional supply chain process that is currently used by a wide variety of businesses across many industries. For example, tokenizing auto parts and tracking them on the blockchain can enable increased visibility from production to the secondary sales pipeline. Additionally, these tokenized assets can provide transparency on potential recalls and damages that can prevent future losses and crises.
Bringing more information and intelligence to the NFT market, aided by the widespread adoption of digital assets in new industries, will propel the continuous feedback loop of growth and innovation necessary for the success of the NFT ecosystem.
Accessibility, driven by increased simplicity and privacy, will undoubtedly expand the application possibilities of digital assets.
About SIMBA Chain, Inc.
SIMBA Chain is the chain-independent application programming interface (API) development platform that provides gateways to Web3 for cloud-based Web2 and Web3 native businesses. NFT platforms, enterprises, governments, universities and individual programmers can rapidly develop and deploy distributed Web3 applications (dApps) using SIMBA’s simple, accessible and flexible Blocks(™) suite of products and solutions. . SIMBA was founded in 2017 with a DARPA grant to the University of Notre Dame and ITAMCO, and has received numerous awards including a 2020 U.S. Small Business Administration Tibbetts Award, TechPoint’s 2019 Mira Award for the new product of the year and the 1st Source Bank award. 2019 Commercialization Awards. SIMBA Chain’s eco-friendly and energy-efficient platform supports Avalanche, Ethereum, Consensys Quorum, Binance Smart Chain, RSK, Stellar, Hyperledger, among other blockchain protocols. To learn more, visit simbachain.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.