- NFT 2.0 will be the successor of NFT 1.0 (BAYC, CoolCats, CryptoPunks).
- INFT 2.0 comes with advanced features and use cases.
NFTs are blockchain-based digital assets that are unique and prove ownership of their owner. They differ from cryptocurrencies like Bitcoins and Ether in the sense that they carry unique identification metadata, which makes them non-fungible. Two bitcoins are indistinguishable, however, the millions of NFTs existing now are all unique. The NFT culture started with the launch of Crypto Punks. It slowly developed to gain celebrity status, when celebrities, big brands, and investors started purchasing the BAYC collection.
NFTs became popular because of FOMO and speculated belief that they were only for profit purposes and had little to no contribution to the development of the ecosystem. The early marketplaces for NFTs also generalized the notion that NFTs are only for commercializing tokenized assets.
These NFTs were just static images of some popular apes or memes which were sitting on blockchains. They could be bought, owned as an asset, showed off but not interacted with. These NFTs did not interact among themselves or with their owners and were just dynamic. With technology evolving in all directions, NFTs that were interactive, sophisticated, multifunctional, programmable, and flexible with multiple levels of agility were much needed.
NFT 2.0
To begin, NFT 2.0 is not entirely different from the earlier version and they can’t be operated independently from NFT 1.0. They create a new marketplace and more user cases for their holders like in-game assets, music, collectibles, gate tickets, coupons, and lastly the renowned digital art. NFT 2.0 are distinguished from its predecessor phase by some unique capabilities such as:
- Interactivity:
NFTs can be made intelligent using smart contracts. They can prompt user input and modify themselves to adapt best for future needs or purposes. Through smart contracts, they can interlink with other NFTs and impose user-requested customization, which can include day and time. For instance, if an NFT of a landscape is bought, then it may change itself based on daytime, night time or even seasons, making it intelligent and more personalized.
- Multiple Ownership and DAO:
NFTs can be bought by multiple people through co-ownership, each one with some percentage rights. This especially is beneficial for those who want to invest in NFT but because of its high price can’t afford to purchase one. They can now invest in small amounts. The various owners can then be given a token, native to the NFT, based on their investment size and they can decide through voting its fate. E.g. Multiple donors can come together to buy an NFT for a noble cause and donate it to an orphanage, which becomes an interesting take on charity. Another amusing case of a chain of ownership can also be built where an NFT owns other NFTs.
- Loaded with Various Resources
NFTs don’t have to be a single JPEG image for the rest of their lives. There can be multiple resources like video, audio, and images embedded into a single one. Users can interact with them and choose the one they would like to enjoy. For e.g NFT of a movie can have the movie (video), the poster (image), description and cast details (text), and its album (audio), all in a single file.
- Lending
Although NFTs come with the concept of ownership, the owner can lend their NFTs and use them as a source of passive income rather than just keeping them.
Final Thoughts
NFT 2.0 will present itself with more unimaginable user cases and thrill their owners. They may give rise to the possibility of merging the physical and digital worlds. NFTs with functionalities of Talking Tom can be made which can interact with us and remember our birthdays, anniversaries, and other important events. NFTs-based brand or celebrity loyalty cards can be made, with points updated after every purchase or attending concerts.