- NFT’s vast potential is now also being used to preserve cultural artifacts digitally.
- Immutability plays a crucial role in certification and authentication on the internet.
Recently, the NFT market faced a crucial impact because of the crypto winter. Recently, it has been hit hard as the number of unique NFT buyers dropped below 500k for the first time. The total sales fell below 15% at the peak of the year 2022, according to a survey of the NFT data aggregator. Still, after all these scenarios, the Web3 community is looking for the confident waves that determine NFT’s full potential reach.
How Decentralized Immutability Play a Vital Role?
NFTs serve as a certificate that’s immutable, making it unchangeable and it can’t be destroyed either. This leads to the scarcity of authentication on the internet and results in a technology that has never been seen before. Former CEO of the South China Morning Post (SCMP), Gary Liu, who is also chief executive and founder of Artifact Labs, stated this forecast in an interview.
After SCMP started an NFT project, Artifact Labs became an independent firm that aims to build a sale and trading-based marketplace to facilitate historical NFTs as a prominent player in a brand-new economy. This initiative strives to create a universal standard beyond SCMP that other historical and news organizations can also use for tokenization. Because of this, global assets can effectively inherit historical archives by transitioning them to NFTs. This could potentially catapult the integration of new and out-of-the-box business models for the on-chain preservation of collective human history.
Custodian’s Shift from Web2 to Web3
Custodians like museums and libraries that preserve historical artifacts resulted in scarcity due to the Web2 revolution, which imposed an enormous challenge to their ability to be economically viable. Web3 transitions, like non-fungible tokens (NFTs), offered numerous game-changing opportunities to significant cultural and historical organizations.
According to Gary Liu, the recent bearish market of digital assets corrected and encouraged developers across the deep exploration of Web3 utilities. This helps the industry in cyclic conditions where the NFT market faces a long way to maturity. Meanwhile, regulators keep struggling to cope with Web3 evolution.
Aspects of Collective Memory
In early 2021, the SCMP decided to experiment with NFTs after several years of blockchain studies. This company realized the scarcity of standards for proper evaluation of existing intellectual property (IP) along with the on-chain historical assets. This company then aims to put an archive on the blockchain and open it up for decentralized ownership.
This company ensures the right context for the asset’s legitimacy with long-term historical value and significance. NFTs serve as a certificate of scarcity, provenance, and authenticity. They are anticipated to solve severe issues like infinite replication of assets. Even when an image is copied, the original token will always possess greater value.
This proved to be a prominent solution in the world of traditional art. This method is more useful at some marketplaces where a painting is sold with an entire database of its creation and ownership. It shows the entire detail of its recent and previous ownership and where it was exhibited. All these properties help determine an asset’s credibility and greater value.
Conclusion
NFTs have shown their vast decentralized functionalities along with numerous possibilities and features. These on-chain features have proved to be helpful in various sectors. Preserving artifacts and collective history can be leveraged by these non-fungible tokens via digital ownership. This not only paves the way for Web3 technology’s wide applications but also reshapes the future of a decentralized ecosystem.
