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NFT Makes Changes: New Digital Economic Era

The market needs digital financial instruments for transparency and sustainability. Tokenization can become a new stage in the development of the digital economy, changing investment, trading and financial reporting.
New Digital Economic Era
New Digital Economic Era
NFT create new market for off-chain assets
NFT create new market for off-chain assets
Tokenization and blockchain bring transparency
Tokenization and blockchain bring transparency
Digital tools create new rules for determining value
Digital tools create new rules for determining value
While the global economy is subject to geopolitical factors and is unstable, full of barriers and lacks transparent infrastructure and exchange tools, now it is time to move further in the digital economy toolbox.

The digitization of the economy is much deeper than simple cost-cutting. New funding streams, new blockchain-based exchange and traceability tools create a favorable socio-economic climate.

Tokenization is becoming a serious financial instrument and a new era of global investment.

A token is a smart contract hosted on the blockchain. Such a contract contains several conditions - an obligation, ownership, or a bond. Stablecoins and security tokens can be used for tokenization, but the latest solution was the NFT technology - a non-fungible token.

Most of the NFTs were issued in the first months of 2021. According to Nonfungible, the volume of the NFT market now, when the hype wave has subsided, is $ 16 million. NFT has shown that with the proper infrastructure and tools, even a seemingly insignificant offer, can find its demand.
What NFT technology brings
NFT technology engages diverse implications in the financial market and beyond the cryptocurrency industry. Tokenization keeps costs to a minimum. Blockchain technology itself is designed to eliminate intermediaries from certain processes. Numerous checks complicate the work, so the blockchain is located in the infrastructure layer of this process. It offers the opportunity to create a certain single reliable database for conducting all checks in an automated manner. This significantly increases efficiency, speeds up the processes.

NFTs are creating new tokenized markets for off-chain assets, bringing new people to the industry through the digitization of art, collectibles, and other things, acting as the legal support for dealing with tokenized assets. With the help of NFT, sellers can tokenize not only works of art and virtual collections, but also any other intangible objects - tickets to events, artifacts from video games, virtual reality, and even real objects. Blockchain allows sellers to create value and validate authenticity. It brings an investment or collection attractiveness for tokenized items.

NFT opens up new economic opportunities. Its value lies in three main features:

Creating liquidity for digital assets. Digital assets are now unlinked from platforms and can be sold not only there.

Sharing purchase. Tokenized assets can have various owners. One asset can be divided into several tokens belonging to different owners.

Uniqueness and traceability. All purchases and movements within the NFT market are transparent, and the owner will always have the tool to prove the ownership of the asset.

NFT create new market for off-chain assets
NFT create new market for off-chain assets
Tokenization and blockchain bring transparency
Tokenization and blockchain bring transparency
Digital tools create new rules for determining value
Digital tools create new rules for determining value
Market Needs Experiments
The increase in the number of use cases of NFT technology is not so fast. The excitement around NFT will gradually disappear and give way to normal and stable market development. The technology can no longer surprise the world, but NFTs can find new solid uses.

Distributed ledger technology and an economy based on it can lead to a new format of economic relations. Blockchain provides transparency and honesty and increases the role of the client, the ability to individualize and customize financial tools. Thus, DLT can be the ideal new market.

The NFT market is still at an early stage of its development and needs to expand infrastructure for tokenization and exchange, develop and implement tools for assessing and integrating the value of NFTs. The infrastructure should include not only exchanges and registries but also organizations that can provide tokenization. Unified instruments can have an essential value for the NFT economy.

A more complex requirement is a different attitude of society towards the crypto industry and its adequate legislation. If people start looking at the crypto industry and its elements from a broader perspective, they will find new breaking solutions, leading the market and society to the next level.
NFT, DLT, and New Rules
Transparency and accessibility are the greatest values ​​of blockchain use, and in the decade since the technology's inception, they have not faded. Moreover, these values ​​can be provided both with open and decentralized blockchain networks and with the help of private networks. Including NFT, financial solutions based on distributed ledgers are developing the most actively. The concept of decentralized finance (DeFi) and Central Bank digital currencies (CBDCs) were the latest trends. More than 80% of central banks are either studying digital currencies or have already piloted them.

Digital currencies and other instruments of the crypto industry can create new rules for determining value in the economy. Potentially, this means creating an economy that is independent of external economic and political processes and risks. The number of use cases for distributed ledger technology is almost unlimited.

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