Rather than fading into obscurity, non-fungible tokens (NFTs) are simply adapting and evolving, according to Jana Bertram of the Rari Foundation.
Are NFTs extinct? They’re simply transforming, suggests Rari Foundation’s Jana Bertram
Non-Fungible Tokens (NFTs) have made an indelible footprint in the digital asset landscape. The sudden and fiery popularity explosion of NFTs at the beginning of 2021 has cooled down, triggering a widespread belief that the NFT wave might have come to an end. However, Jana Bertram, the Business Development Lead at Rari Foundation, disagrees.
A Shift, Not A Demise
According to Bertram, the NFT sector is not dying but is undergoing an evolutionary phase. The craze may have died down, but the use and integration of NFTs into the broader digital asset space is just getting started.
NFTs as Versatile Digital Assets
Bertram emphasized the importance of NFTs beyond artwork. These tokens can serve as versatile digital assets, capable of representing ownership or a part of digital or physical assets. She noted:
“There is a vast potential in using NFTs beyond just digital art and music. Think of them as versatile digital assets that can represent ownership or a portion of various digital and physical assets.”
The Role of Regulation
With the rise of NFTs, regulators worldwide have become attentively watchful of the growing sector. Given the potential implications and uses of NFTs, it is reasonable to expect a wave of regulatory scrutiny to follow. While this might seem daunting for NFT enthusiasts, it is a necessary step to legitimize the space and encourage more widespread adoption.
Creating a Sustainable NFT Environment
Bertram also mentioned the importance of fostering a sustainable environment for NFTs. She pointed out that the high energy consumption of NFTs, especially those based on the Ethereum network, have raised environmental concerns. Solutions such as layer two networks and proof-of-stake blockchain networks could potentially address this issue.
The Future of NFTs
The Rari Foundation executive sees a bright future for NFTs despite claims of their demise. She predicts that the NFT community will continue to grow, innovate and present more sophisticated applications and use-cases of the technology.
In conclusion, while there’s been a shift in the hype surrounding NFTs, their actual use and value are far from over. As digital tokens evolve, so too will their applications and opportunities for utilization in the digital asset space, and perhaps, the physical world.
