Home Business Sustainable Blockchain, Buzzword of Physical Object NFTs for Consumers and Crypto Developers

Sustainable Blockchain, Buzzword of Physical Object NFTs for Consumers and Crypto Developers

Sustainable Blockchain, Buzzword of Physical Object NFTs for Consumers and Crypto Developers

The main reason behind the creation non-fungible tokens (NFT) was intended to represent digital goods, but now there is increased potential to use them in the future to also represent physical goods and experiences, according to a new report from Ripple (XRP).

The report, titled “New Trends in Valuable Cryptography in Business and Beyond-2022,” notes that, as with all human activities, there is also an environmental cost associated with NFTand now consumers and developers are thinking more about operating them at sustainable, energy-efficient sites. Block chains.

That said, not all Blockchains are as environmentally damaging as some others, according to the report.

The report also noted a common line of thought that most people associate with NFTs.

He said most people think of NFTs as tokens representing “ownership of something digital, like a graphic, photo, or video clip. But, in fact, NFTs can represent ownership of something physical, like a case of wine, a pair of sneakers, or a plot of land.

The report surveyed more than 800 people in 22 countries in Asia-Pacific (APAC), Latin America (LATAM), North America, Europe, Middle East and Africa (MEA).

The results revealed that 75% of consumers worldwide prefer sustainable NFTs.

He said that, as with all human activities, there is also an environmental cost associated with NFTs. “This is especially true for NFTs that are minted on a proof-of-work blockchain, such as Ethereum (until its upcoming transition to proof-of-stake), where the majority of NFTs are currently minted.”

More than a quarter of respondents strongly preferred to buy durable NFTs, and while a fifth of people said they would only buy a durable NFT.

Regarding Blockchain developers, Ripple recorded that two-thirds of all developers consider their organization more likely to choose a sustainable Blockchain for NFT projects, adding that their customers also want them to select a more sustainable Blockchain. .

Additionally, a fifth of developers said they would select sustainability as one of the top five attributes of a cryptocurrency they would use in their Blockchain application.

The report also shed light on the amount of energy required to manufacture NFTs on Ethereum. It was estimated that minting a single NFT on the “Ethereum blockchain uses 231.31 kWh of energy, which is more than the average US household consumes in a week,” the report said.

“But not all NFTs generate huge carbon emissions. The carbon footprint is related to the type of consensus mechanism that drives validation on the Blockchain on which the NFT is minted and traded. There are other Blockchains with much, much lower power consumption like Solana, Flow and the XRP Ledger,” the report adds.

What type of NFT do consumers want?

The report recorded consumer responses and asked whether they would prefer digital, physical or experimental NFTs. He found that 25% of consumers preferred all three types of NFTs.

“Response rates were similar across regions, with slightly less interest in NFTs representing experiences than those representing digital or physical assets, although in Europe they were comparatively more interested by experiences than by digital and physical assets,” the report said.

The report further adds that there is a huge opportunity in NFTs in the future, as the vast majority of things in the world are non-fungible. He illustrated the concept with an example.

“An NFT can also represent something experiential, like front row seats at a concert or voting rights in a community. Or, it may even represent a combination of digital, physical, and experiential assets,” the report states.

Future demand for NFT

According to the report, NFTs representing digital goods are now the area of ​​focus, but going forward, NFTs representing physical goods and experiences will have good upside potential as “people move more and more fluidly through the physical world and the metaverse”.

“But, NFTs for digital goods will continue to be important – especially those that combine aspects of community, access and accreditation,” the report adds.

Future scope of consumer NFTs

According to the report, the current complex and confusing knowledge of NFTs will be replaced by greater simplicity and understanding. It will also pave the way for more people to more directly feel the emotional value of NFTs, according to the report.

According to the report, as more creators join the trend of hitting NFTs, and as NFTs are used in more innovative ways by well-known creators, “the NFT trend will solidify and grow in the long term. for consumers to engage with their passions, and for creators and consumers alike to realize and manage the economic value of those engagements.

“Consumers themselves are about evenly split when asked if NFTs are a temporary fad, a medium-term trend, or will last a long time. We believe that over the next two years, the number of those who say they will be there for a long time will increase dramatically,” the report said.


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