Humans have always been pushing the boundaries of what is possible with new technologies. The rapid advancements of the last few years can make it feel like this is a new phenomenon, but that is far from the case. While modern technology has made life much more convenient with easier ways to send money around the world, faster communication, and automation of mundane tasks, innovations like the printing press and the telegraph also had major impacts on our lives.
One of the most talked-about technologies of recent years has been blockchain technology. It became mainstream in 2017 when interest in Bitcoin suddenly exploded, driving its price upwards. This excitement spilt over into other “alt-coins”, some of which have fared very well, while others have proven to be less successful.
However, blockchain is much more than just digital currencies. Those involved in the industry have speculated about the many ways that this new technology could be applied to different areas of our lives and, in 2021, we began to see some of this begin to happen.
The concept of non-fungible tokens (NFTs) reached a critical mass in early 2021, with people buying artwork, Tweets, and video clips for hundreds of thousands or even millions of dollars and using these NFTs as a digital deed to prove their ownership. This information is stored on the blockchain, making it possible to ensure security.
In 2021, a degree of mania has developed around these NFTs similar to the dot-com bubble seen in the 2000s or even the tulip mania of the 17th century, though it is beginning to settle down somewhat now.
In place of this wild speculation, it seems that mainstream adoption of blockchain technology in other areas could be right around the corner.
Gaming
Gaming companies have been quick to spot the opportunities offered up by NFTs. In early November, Electronic Arts announced that it sees technology as “an important part of the future” for gaming. The company’s chief executive added that he believed FIFA players would like NFTs to be added to the video game franchise.
Just over a month later, its rival, Ubisoft, went a step further by announcing Quartz, an NFT system for cosmetic items in video games. Each item, known as a Digit, will have a unique serial number that will be engraved into the in-game object, while the history of its owner will be tracked on the blockchain.
This could create a secondary market for in-game items that could create new business opportunities for developers, publishers, and players.
It is clear that this is now the direction of the industry, so most other publishers will follow Ubisoft and EA. However, we could see NFTs used in other areas of gaming, such as hardware and iGaming.
Online casinos have always been at the forefront of new technologies, developing new ways to play and innovative games. For example, rather than offering just a couple of different slot games, iGaming companies have developed hundreds that offer different RTP rates, features, themes, and promotions, allowing them to cater to a wide variety of different audiences.
As an industry that embraces innovation, we could see iGaming also adopt NFTs and blockchain technologies. Although they’re not currently included in online casino games, they could be used to provide proof of ownership of special prizes or confirm that payouts were made in accordance with the terms.
This could also apply to hardware. Special edition consoles and peripherals could be assigned serial numbers that are tracked with NFTs in the same way that Ubisoft’s Digits will be.
VR and the Metaverse
Virtual reality and the metaverse are technologies that are likely to make big steps forward in 2022. Several major tech firms are pushing forward in these areas with billion-dollar investments.
Meta is expected to release its Quest 3 early in 2022 and has slashed the price of its current-gen Quest 2 in preparation for it. There is also a lot of talk about how the company’s metaverse plans could revolutionise the way we interact with the world.
For example, the ability to use NFT digital clothing to cut down on the environmental impact of fast fashion has been mooted by those involved in the industry. Similarly, these tokens could be used to track who owns digital properties within the metaverse.
While some of this may not be ready for mainstream adoption in 2022, we are already seeing the early stages of these applications and they’ll continue to grow throughout next year.
Other Realistic Applications
There are other possible applications for NFTs too, many of which are already in use and will likely be expanded throughout 2022. Ethereum.org already uses them to prove that someone has contributed to its project and this same model could be rolled out to provide digital certificates and degrees in the education sector.
Similarly, distributed domain name systems that use NFTs to prove ownership of a particular internet address could make the internet more open and reliable. This technology already exists and will be expanded into 2022.