The Rising Popularity of Non-Fungible Tokens (NFTS) With an AR Component
The augmented reality (AR) and virtual reality (VR) marketplace has experienced tremendous growth in recent years, with the technology becoming well-recognized by mainstream society. In fact, the market is forecasted to reach an estimated $766 billion globally by 2025, according to new reports from Market Research Future (MRFR).
From gamification to therapeutic interventions to manufacturing and industrial operations, there are a myriad of applications, as well as benefits, to leveraging the technology. Among the areas quickly rising in popularity are non-fungible tokens (NFTs) that utilize an AR component.
What Are Non-Fungible Tokens (NFTs)?
As Forbes defines it, “An NFT is a digital asset that represents real-world objects like art, music, in-game items and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.” Unlike a majority of virtual currencies, however, NFTs are completely unique and cannot be exchanged or replaced for something else. Think of NFTs in the same vein as a one-of-a-kind trading card or rare minted coin.
The NFT market exploded in 2020, growing from $41 million to roughly $338 million, according to The Wall Street Journal. The surge came at the height of the COVID-19 pandemic, as lockdown protocols and new remote work policies drove the masses online for both business and pleasure. NFTs are now revolutionizing the art scene. Kings of Leon generated $2 million in sales by releasing their new music album as an NFT, and basketball fanatics have spent nearly $230 million on official NBA-licensed video highlights.
What Are Augmented Reality NFTs?
Compared with a standard NFT, which represents pieces of art or videos, augmented reality NFTs incorporate AR components, like viewing a digital object on your body or in your environment. AR NFTs provide an immersive experience for the end-user, leveraging AR-enabled applications or devices to share the asset.
Renowned American digital artist, animator and graphic designer, Beeple, recently spotlighted the growing prevalence of AR NFTs. His digital art collection, “Everydays — The First 5000 Days,” was sold for a whopping $69 million as an NFT, proving the use of mixed reality in arts has vast potential.
The Advantages of Augmented Reality NFTs
From musicians and artists to commerce retailers and video-makers, numerous benefits can be realized from AR NFTS – the biggest being the ability to produce new revenue streams. And who wouldn’t want to realize additional value from the creative works or digital products they’ve created?
When it comes to the use of mixed reality in arts, there’s no shortage of opportunities for individuals and companies alike. Take Shawn Mendes, for example. The pop star leveraged NFT technology to launch a line of digital versions of his most iconic accessories, like his gold ring and Fender guitar.
Augmented reality NFTs also allow artists, creators and businesses to engage directly with their audience without the usual need for intermediaries. Additionally, unlike analog items, these digital objects are software-based, allowing creators to collect a royalty every time their NFT is resold.
As augmented reality NFTs continue to evolve over the coming years, so will their scope of applications and use cases. To learn more about how AR and VR technology can transform the future of your business, contact our specialists today.