Post
Topic
Board Altcoin Discussion
Re: The rise and fall of NFTs.
by
zeuner
on 01/06/2025, 15:42:34 UTC
Who knows. The thing is that almost no one even tried to explore possible benefits. The vast majority of art-related NFT efforts assumed that throwing NFT on some random piece of of art will magically create something like ownership, fully ignoring that, no matter whether you're talking about fungible or non-fungible, a blockchain won't solve your counterparty risks.
Some are already exploring the benefits though, through ownership and airdrop identification, most of the NFT that still has value also has underlying use, to access certain community and to be eligible into a project.
Almost all of NFT which value purely derived from the value of the "art" are already going to zero.

Yes, there are interesting mechanisms being explored. Just saying most art-related NFTs seem to forget that. To be interesting, NFT-based art should not only use the blockchain as a vehicle to try to capitalize art from other media, but should embrace the medium (blockchain / NFT) itself (see Reichert, 2021 for a more in-depth exploration of that matter).

On a more general note, many NFT-related efforts are based on PoS blockchains, posing an inherent centralization risk. In the worst case, there is no huge benefit compared to openly centralized tokens.