Apart from those that are heavily involved in Web3, there has been widespread speculation around the future of NFTs, especially how NFTs and Web3 can actually benefit or make inroads into core industries around the world.
Well, it already has and it’s not showing any signs of slowing down. From finance to communities, from real estate to events – Web3 and NFTs are here to stay and will more than likely improve our day-to-day.
As it stands, the common uses for NFTs include PFPs (profile pics), art, music, or collectibles. Web3 has become synonymous with phrases like the Metaverse. Yes, those are some of the areas in which Web3 and NFTs are currently known to operate, but there’s so much more to come.
Already companies, dev houses, startups, and VCs are chasing the next big thing – how to put their stamp on the next web. We’ll cover a few core industries that will be changed thanks to Web3/NFTs but feel free to check out our 5 NFT Trends For 2022 for some deeper insight.
The following will be changed thanks to this new tech including:
- Music
- Real estate
- Governance
- Raising capital for new ventures
Music
The music industry is already being shaken up by the sudden rise of NFTs and Web3 culture. Gone are the days when musicians lose a large chunk of their earnings to middlemen.
Gone are the days when musicians are disconnected from their fans and followers. A Music NFT is a certificate of ownership of unique audio or a musical piece that can be bought or sold that provides undeniable proof of ownership thanks to blockchain technology.
There are a number of types of music NFTs:
- Full songs and albums
- Digital art
- Tickets
- Video content
Artists will now be able to claim full ownership of their work and get closer to their fans than ever before and thanks to blockchain technology they’ll be able to sell their pieces to a wider audience.
Real Estate
You may think that there’s still a good couple of months or years before you’ll be able to buy a house through an NFT. Wrong! Earlier this year a house was sold as an NFT for around $650,000.00 (around 210 Ether) through Propy.
The process involved around 50 people that had to go through verification and show proof of funds – and come auction day there were 2 bidders that had been vetted and had the opening bid amount in a digital wallet.
The property first had to be moved to an LLC from an individual owner and once the winning bidder was determined the LLC was transferred to the new owner and funds transferred to the digital wallet.
Due to Ether taking a slight knock, the “value” of the funds that the seller received dropped by around $40,000 within 24 hours.
With the rise in use cases for NFTs and crypto, Propy aims to appeal to the tech-savvy and younger generation of home buyers that are tired of the archaic processes involved in buying property.
The longest step in the wholesale was a 5 minute KYC verification. Propy also aims to be able to offer mortgages (not straight buy-outs) through a stablecoin like USDC that’s always pegged against a strong currency like the Dollar.
Governance
We’ve all heard the term DAO recently – but what is it exactly and how will it change the governance of communities, businesses, and brands?
Decentralised Autonomous Organisations are set to change the way we function as a society and in some areas eliminate elicit behavior.
There will be no CEOs calling the shots based on a whim or no CFO cooking the books. DAOs are based on the premise that every person involved holds a vote and has a voice.
This trustless system runs on blockchain protocol fully and autonomously in accordance with rules encoded via smart contracts.
Eventually the normal 9-5, one-job-only will be replaced by people engaging with and for a few DAOs – performing pre-determined tasks from anywhere in the world.
DAOs have become so popular that some NFT projects are including tokens that act as voting rights for the project’s direction.
This means that the project can’t make any big move without the approval of the community that is invested in it.
Shares in a DAO can be transferred or exchanged/sold as NFTs and some projects offer a limited number of voting tokens per wallet – as to not give too much control to a single individual.
Raising capital for new ventures
Gone are the days when you need to approach VC, Angels, investment firms, your friends and family, or even take some savings out to fund your new business venture or invest in a new product.
NFTs are becoming a great way to raise capital and build a community. And fast.
Projects from all over the world are building utility-driven NFT collections that essentially offer fractionalised ownership to the minter. This ends up being a win-win. The project gets the funding it needs to get built or carry on running, and the minter benefits as the project become successful.
The way that NFTs and Web3 are becoming more and more applicable to our everyday life is astounding and as mentioned previously, it is only going to grow in popularity as mass adoption starts to kick in.
That brings us to our closing point – education. Education is needed to facilitate this mass adoption of the next wave of the web.
Platforms like Inevitable are already offering free courses to educate the masses on how web3 works, what NFTs are, and how they can be used.