Why is it critical to keep tabs on the latest NFT developments? Whether or not you agree with the concept of NFTs, some of the upcoming trends could alter the way we use the internet, brand products, purchase and sell art, and even create and experience music. The promise of Web 3.0 and NFTs will really take off in 2022, according to Bored Ape Yacht Club member Jace Kay, who is also a member.
See our explainer on what NFTs are (you're not the only one!) and our guide on how to make and sell an NFT if you're still unsure of what they are.
Kay, on the other hand, is an expert in NFTs, and we can attest to that. One of the most successful NFT groups and the co-founder and creator of the famous Facebook Lemon AR filter, he is also an active member of BAYC.
Still unsure if NFTs are worth your time and effort? To illustrate his point, Bored Ape Kay offers the following example: "My first Apple computer cost me around $3,200 back in 1996. […] Apple stock, on the other hand, would have saved me from having to work for a day in my life. When you buy a 'computer' in the new world of NFTs, you're actually taking ownership of the company. As a result, even if it goes up in smoke, you'll be able to obtain some of it."
With the release of their first song, 'I've got a cool cat, too,' Kay has formed virtual music group The NFTs and tapped into his own virtual music group StereoheadZ Music Club to cast its stars.
If you are a member of the digital art community, don't miss Vertex Week 2022. Disney artist Chris Petrocchi will talk about how to promote your NFT art, while Stereoheadz founder Jace Kay and Bored Ape Yacht Club founder Jace Kay will talk about NFTs, music, and the metaverse.
NFT Avatar Casting
With NFTs, you can own a piece of a larger brand and profit from it, which is an advantage over traditional IP creation. Artists, animators, and musicians have a new outlet for their creativity thanks to NFTs like Bored Ape Yacht Club and StereoheadZ, which let members mint their own art for the group.
NFTs band member Jace Kay used community-sourced Avatars and paid the artists who provided them. The StereoheadZ Music Club had an unnamed rock star as a member, which helped a lot.
It's safe to say that "Avatar Casting," as Kay refers to it, will be more popular by 2022. If you've got a spare Stereohead or Bored Ape, you're welcome to lend them out to the BAYC and get a cut of the profits. Another 2022 NFT trend is tied in with this.
Community owned branding
By handing over intellectual property (IP) control to a community, Kay says, "the parent brand would never have done in the past adds value." If an artist's work is used in the future, they will always be paid for it thanks to the blockchain and NFT. Artists are compensated for their contributions at every stage of the creative process when ownership of an IP is loosen.
Bored Ape Yacht Club, for example, was nothing before May, 2021 and now it's one of the famous brands in the world, almost.
Will Disney and other big brands open up their IP to NFT communities to share? Even in large corporations, NFT communities and groups will be used to promote new products through community-led marking and branding. Your art may be fronting a Coke ad next Christmas if you make a Bored Ape and put it up for avatar casting.
When it comes to the environmental impact of NFTs, there's a fact that a single Ethereum transaction that uses as much power as a typical home for a whole 24 hours. When you have your foot on the gas and your brakes applied, Ethereum is "burning energy," according to Kay. "That's not how it has to be. It's also evolving. Next year, Ethereum 2.0 will gradually roll out, and it will make a huge difference."
To go through the network, you have to pay a larger fee because Ethereum's present "pipe" can't handle the volume of transactions. Ethereum 2.0 will increase the pipe's capacity while decreasing its price. A decreased cost, more output, and increased value for NFTs issued on the Ethereum blockchain are some of the benefits of Ethereum 2.0.
Gaming and tokenization
It's a major deal. In the coming year, NFTs will move beyond their original purpose of promoting art and focus more on practical applications, such as gaming or gaining access to specialized groups. Video games like Ubisoft are already using blockchain technology to allow players to buy and unlock goods that have real worth. NFT prizes can earn gamers $15 an hour at Axie Infinity, a "$6 billion" company that has become a 'play-to-earn' pioneer.
For many NFT projects, tokenization is being used as a means of increasing the value of the product. Additionally, these tokens may be traded on the secondary market. There's a lot of power if you do it well.
Apple is the beginning of the metaverse
To put it another way, in 2022, the metaverse will begin to take shape, and NFTs will be at its core. NFTs and other blockchain technologies will be integrated into the metaverse, removing any need for intermediaries or jargon. Kay, on the other hand, believes that Apple's seamless approach to UX and UI is where it all begins.
The snag may be the high-end AR/VR technology's rumored $3000 price tag for the Apple VR headset. These two companies could end up taking the lead in virtual reality headsets: Meta/Facebook and Oculus. It's not so, according to Kay, a skeptic of Facebook.
Web 3.0 will take off
"NFTs are built for Web 3," says Kay. Instead of reading and writing, Web 3.0 emphasizes "ownership" and "rewarding" in virtual environments and games like Decentraland and Fortnite (social media and experiences). NFTs with the expansion of the internet work hand-in-hand, and it will truly take off in 2022.
In 2022, music and NFTs will be big, and Napster will be big. The NFTs, a virtual band Kay and her fellow Bored Apes have formed, will release new music soon. However, in the music industry, NFTs will be more widely used. Block (previously Square) was founded by Jack Dorsey, who stood down as Twitter CEO in order to convince streaming providers like Tidal to implement music NFTs.
Stationhead, a live music and broadcast platform, is Kay's second initiative in addition to StereoheadZ NFT, a decentralized music label and community. To stream music from Apple Music and Spotify using Stationhead is completely legal.
" Real world experiences," adds Kay, "are another thing that's starting to happen, but it's kind of exciting and tied into the kind of usefulness you get." One of the perks of being a supporter of an NFT project is that you'll get to participate in frequent events for holders.
A New York City celebration in 2021 saw 2,000 Bored Ape Yacht Club NFT holders converge to witness Beck, Chris Rock, and a resurrected The Strokes perform in a secret warehouse location.
Ownership and labeling in the digital age
"We're talking about NFTs right now because they give digital content owners a stake in it, but NFTs will be used in everything", according to Kay. In addition to art and music, "we're starting to talk about seeds, about buying food," Kay explains. Physical items and experiences are starting to receive digital tags. It allows for a lot more fascinating things to be built with openness.