Whether you like to think about it or not, blockchain-based NFTs are coming. Whether for digital assets, tangible assets, or something else entirely, shortly, NFTs will fundamentally change how we experience various aspects of our daily lives. Yacht Club member Jace Kay says 2022 marks the year NFT technology and related concepts will explode onto the global stage. There’s always a question about what is NFT crypto.
But Kay knows his stuff about non-fungible tokens (NFTs). Not only is he a member of Blockchain Association of Young Cryptographers, or BAYC for short (opens in new tab), one of the most successful NFT groups, but he also co-founded
social music streaming app Stationhead with Ryan Star (opens in new tab) and created a the famous Facebook lemon AR filter.
Still not convinced NFTs are worth bothering with? Bored Ape Kay has a great example to support his claims: “In 1996, I bought my first Apple computer, for like $3,200. […] But if I had just bought Apple stock instead, I would have never had to work a day in my life. In the new world [of NFTs], when you buy the ‘computer,’ you’re buying shares in Apple Inc. Hence, your ‘computer’ grows in value as well.”
01. NFT Avatar Casting
The advantage of Non-Fungible Tokens (NFTs) like Bored Ape Yacht Club and StereoheadZ over traditional Intellectual Property (IP) is that users can own a piece of a wider brand and make money off it. In addition, NFTs can be used to mint art and content for the group, which brings a new sense of creativity to the community!
In Jace Kay’s NFTs band, some personalities were sourced from fan contributions, and payments were returned to those artists. Of course, it helped that a well-known rock star was part of the StereoheadZ Music Club.
In 2022, we can see BAYC members sharing their talents more and more using what David Kay calls “Avatar Casting“. Members of the BAYC can put up their Bored Apes or StereoheadZ for use by other members of the community and get a piece of the profits. This ties into another trend that we see in 2022.
02. Community Owned Branding
“Giving IP control to a community to “take and spin into new directions that the parent brand would never have done in the past adds value,” says Kay. An open Blockchain and NFT offer primary and secondary resell rights for artists, ensuring an artist’s work is always paid for no matter how their product may be used in the future. Loosening control of an IP enables growth and creativity, enabling fans new creative avenues – all traceable through smart contracts. The only way for PROPS to succeed as a project is if our fans feel empowered at every stage of the creative process from start to finish.”
“Take Bored Ape Yacht Club as an example,” says Kay. “It was nothing before May [2021], and now it’s one of the biggest brands in the world – almost.”
Expanding on the previous example of an NFT community as a community-led marketing platform, if you find your label successful and make that Bored Ape appealing for people to check out during the holidays, Coke might just come calling and make you an offer for collaboration.
03. Ethereum 2.0 will Solve its Energy Problem
One of the biggest challenges that NFT-based collectibles like CryptoKitties face are that they require a lot of power to function. One transaction on the Ethereum blockchain uses as much power as the conventional household over a day and a half! However, all hope is not lost – Ethereum developers are working to create a new iteration called Ethereum 2.0 that will promote more environmentally friendly crypto-collectibles shortly with its blockchain systems.
Kay says the Ethereum “pipeline” is not currently big enough to accommodate the large number of people who want to use it because there is a risk of congestion, causing costs for people to use the network to go up. The advantages of Ethereum 2.0 will provide more capacity, bring down costs and enhance NFT value.
04. Tokenisation and Gaming
The future of nfts will be a huge growth area in the next few years. They will move from initial use cases promoting art and digital collectibles, through utility with gaming, into areas such as investments and financial services. Video games have already led the way here, with AAA publishers such as Ubisoft purchasing a blockchain startup so players can now buy, sell and trade virtual items that hold inherent value. Axie Infinity is a prime example of an earn-to-play game that has attracted backing (backing value currently over US$6bn), with users being able to play the game to earn rewards ($15/hour).
Kay says: “A lot of non-fungible token projects are focused on giving users more value and creating so much utility that their project tokens not only have practical, everyday uses but also have room to appreciate over time and be sold in an open marketplace. If you do it right, your project tokens can pave the way for massive profits.”
05. The Metaverse Starts with Apple
The metaverse is a world that can be accessed through virtual reality or any other digital device and will start in 2022. It has been argued that blockchain, cryptocurrencies, and NFTs will be at the heart of this vast experiment to create new ways for humans to communicate with one another. The advantages of such novel technologies are already being served inside the metaverse daily, instantly pushing aside outdated methods that have existed for many years now. However, for these newer technologies to take off in the metaverse, it could perhaps begin with Apple and its seamless approach to UX and UI – because that’s exactly what these new projects require to succeed!
Apple will reveal its VR device this September, and while we don’t know the price, it is predicted to be high-end in the AR/VR tech niche. The third-party device may be more affordable, but Apple has not mentioned features like a wireless option or onboard storage. This could potentially push Facebook’s Oculus VR into leadership if these features have been missed by Apple, as Tim Cook did not acknowledge any third-party hardware during his speech.
“I don’t think the Metaverse will be just one platform“, says Vitalik, who believes that many different platforms will someday exist in the digital/virtual realm.
06. Web 3.0 will Take Off
“NFTs are made for Web 3,” says Kay. While earlier iterations of the internet were primarily geared towards surfing the web, posting to social media platforms, and creating one’s own experiences, Web 3.0 is about bridging additional worlds and games, trying to bridge different digital assets with NFTs, such as in worlds like Decentraland or Fortnite.
07. Music NFTs will Takeover
In 2022, network music and universal NFTs will be a big deal as services like Napster continue to arise. Kay has formed a virtual band with fellow Bored Apes called The NFTs, which will surely gain notoriety in our world. In addition, Jack Dorsey is stepping down as Twitter CEO to run Block (formerly Square), the company he co-founded, with additional aims at getting streaming services such as Tidal to adopt music NFTs into their practices.
Kay’s other project, StereoheadZ NFT, is Station head – a music platform for both emerging and established artists. You can use it to broadcast live performances and make your music available through Apple Music, Spotify, and many more legal channels.
Platforms like Stationhead will be able to exist in and across the metaverse, thanks to decentralized or distributed servers that allow one to chat or share their music. In addition, non-fungible Tokens will reward listeners who follow a band for being active platform users. It’ll also give musicians royalty payouts for doing live concerts or broadcasts on the platform.
08. Real World Experiences
“Selling an NFT gives holders real-world experiences“, says Kay. For example, if you’re supporting an NFT project, you’re invested in a community, and one of the rewards will likely be regular events for holders.
The wait for The Bored Ape Yacht Club to stop being imaginary is almost over. NFT holders in NYC could enjoy an exclusive event recently at the Made in America festival, where they could see Beck, Chris Rock, and 2,000 other members of the crypto tribe who are now also members of this hip new club. “I think people will get more into these real-life experiences we’re creating.”
09. Digital Tagging and Ownership
Kay says, “There’s a lot of learning going on right now, and we [NFTx] want to support the artists and cultural….” Kay goes on to express how NFTs will change how people buy products in the future. For example, imagine if you could own a digital version of your food even though it may not have been made yet! That’s exactly what Kay proposes is possible with NFTs.
Imagine if Adele bought a sweater and then sold it, you’ll know that it was Adele’s sweater. The value of such a personal treasure would be incredibly valuable, wouldn’t it? It’s the kind of jewelry that no one else would want to wear. Now imagine if your digital tags applied to physical items and experiences similarly. That’s what Uulala is doing, so what we’re able to do is build tools that allow online communities or groups to share their items, experiences, or resources. It opens up many interesting possibilities for people who aren’t already connected.
10. The Rise of Personality NFTs
“I think in the next few years [2022], we will see a rise in the popularity of NFTs,” says Kay. He mentions that a new startup app on Snapchat lets users completely remove themselves from the picture and be replaced with a virtually generated Bored Ape. “It’s pretty amazing how realistic it looks,” he says.
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