the insider

NFTs adoption: hopes and aspirations

Drofa Comms attended Binance Blockchain Week 2022 based in Dubai from March 28 to March 30. It`s well known that Dubai has always been a magnet for global finance and investment, which has created a congenial climate for holding such events under the sunny skies of the United Arab Emirates. Speakers and representatives of fintech companies like Galaxy Digital Holdings, Binance, Tether and WAX gathered together to discuss the future of NFTs and their mass adoption.

Experts stressed that the attitude of regulators to NFTs at the moment is still controversial. For example, Richard Teng, CEO of Binance Singapore, stated that regulators treat fiat and traditional finance better than NFT and cryptocurrencies in general. This sphere continues to develop, proving its stability and profitability in many directions. However, this problem is not new. Misunderstanding of the principles of working with NFTs and a large number of frauds increase the level of distrust in this area. The speakers highlighted the importance of such events, as they convey the voice of the industry, contributing to increasing transparency and trust of such a complex phenomenon as NFTs for a wide audience.

The participants of the discussion demonstrated the special role of the younger generation in popularising the NFTs and FinTech as a whole. “More and more teenagers are interested in crypto and NFT. They want to make full use of their creative power, be free, and not depend on traditional financial systems and instruments. NFTs and cryptocurrencies are what can become a strong lever on the way to this goal” – said Tim Grant from Galaxy Digital Holdings. This opinion was shared by the majority of the panel discussion participants.

Some participants paid attention to another aspect of the NFTs` popularity in the modern world. For instance, William Quigley, co-founder and CEO of Tether and WAX, told about a thick blanket of hype and speculation around NFTs: “It seems to me now that all NFTs are quite simple, they are not focused on technology, but on speculation and hype. Businesses want to use NFTs, especially gaming companies. But at the same time, video game manufacturers do NOT want to use and create their own NFT. But they have to”. Such a vision of the NFT industry is quite understandable. Now we can observe a lot of centralised systems, for example, Ubisoft. Companies like the mentioned one have always been like that. Many similar corporations now just want to make money, so they prefer centralisation since it is not anonymous unlike a decentralised system. Besides, people trust it more. But as a whole, the interest of gaming companies in NFTs will only grow, which will lead to its mass adoption. The video gaming sphere can become another potential driver of popularising NFTs around the globe. First, the entertainment industry pays attention to them, and then representatives of traditional spheres, such as banks, industrial enterprises and state machinery, will also be involved in this trend.

Summarising all the views on the future of the NFT sphere, it is worth mentioning that the current position of people on NFTs is part of a global pattern. Experts expressed strong confidence that centralised companies will begin to benefit from decentralisation. This is the future. Decentralisation will work better with NFTs and, in general, companies need to move away from total centralisation.