Non-fungible tokens (NFTs) are revolutionizing many industries by providing true ownership, scarcity and tradability. As more and more enthusiasts around the world embrace this trend, the same thing is happening in Canada.
Canadians are exploring what’s new in NFTs like never before and the country’s market is experiencing significant growth.
But how quickly can we expect the NFT market to grow? And will even more Canadians look to capitalize on the potential of NFTs? We will answer these and many other important questions in this article.
NFT in the gaming industry
The adoption of cryptocurrencies has changed the digital world like never before. Not only have they become one of the most popular investment options, but they have also opened up new ways to make profits online.
The emergence of crypto casinos has made it possible for anyone on the planet to participate in their favorite casino games, regardless of local laws and regulations. While 18.9 million people in Canada reported gambling in 2022, many of them did so using digital currencies. Canadian Crypto Casinos allowed them to do this while making near-instantaneous transactions and remaining anonymous no matter how much they played.
Now, NFTs have become the latest addition to the crypto gaming world. These are digital assets verified through blockchain technology that represent true ownership of a one-of-a-kind item. This could be anything from in-game weapons and skins to virtual real estate.
When a player wins one of these items in the game, they become real property of it. This means that in addition to using them in the game, they can also trade or sell them on online markets for real money. Sometimes they can even be ported across multiple games, creating an even bigger market for players.
This is exactly why gamers around the world, including Canada, are becoming more and more interested in this trend. Before, they collected these items only for personal satisfaction, but now there is an opportunity to make real profits from these items.
This aspect of NFTs also allows players to have more personalized experiences when playing. Being able to customize their characters or other assets with unique items gives them a greater sense of individuality and increases their connection to the game.
With so many potential rewards, we are now seeing more and more Canadians entering the world of NFTs and being on the hunt for these exclusive in-game assets.
The Challenges of NFTs in Gaming
NFTs have recently emerged, but like other emerging technologies, they come with their own challenges. It is important that Canadians – and indeed all other people – are aware of these barriers and ensure that they use these assets with a clear understanding of them.
Perhaps the biggest challenge with NFTs is the volatility of their prices. Just like cryptocurrencies, prices for NFTs can vary significantly depending on market demand. An item can be worth hundreds of dollars one day and then see its value drop overnight.
Additionally, although these assets are secured by blockchain, which provides a high level of security, they are not immune to risks. Players can still lose access to their digital wallets, which could also result in them losing ownership of all their items.
With the rise of NFTs, more and more cybercriminals have emerged who seek to profit by deceiving players when buying, selling, or trading NFTs.
Fortunately, there are things gamers in Canada can do to avoid falling victim to these internet criminals. Sticking to reputable platforms and wallets is usually more than enough to stay protected.
Players can further protect themselves by thinking twice before making a deal that seems too good to be true. As long as they make careful and informed decisions, they don’t have to worry much about their NFTs because they are protected by blockchain, one of the most secure technologies available today.
It is also important that they follow common security practices to protect against phishing attacks and other malicious activities to ensure that they never lose access to their digital wallets.
Canada also recently announced that it take more action against cryptocurrency cybercriminals. The country now makes it easier to seize and store digital assets and monitors the sector more than ever.
Other uses of NFTs
A growing number of players are now engaging in games that allow them to earn NFTs, but that is not their only use. Although still in their infancy, these objects are finding more and more use every day.
Beyond gaming, NFTs have made waves in the art world, opening new opportunities for creativity and income for artists. They can now tokenize their own art and sell it online as unique, verifiable assets.
The scale of the NFT market can be seen by the number of online galleries dedicated to showcasing and selling NFT art. Additionally, real-world galleries have begun displaying NFTs, bringing them closer to traditional art and allowing an even wider audience to engage with them.
Canada is also home to NFT galleries, with the 0x Society pioneering the trend. The goal of these galleries is, apart from exhibiting phenomenal works of art, to show what the future holds for digital creatives and what kind of impact assets like NFTs can have on the world.
This trend has also created even more opportunities for individuals to invest in unique NFT coins that have intrinsic value. Additionally, this ensures that the artists behind these pieces can still be traced and receive proper credit for their work, even after resale.
Some NFT collections have already reached astronomical prices and we can expect this trend to continue in the future.
The art community continues to adapt to this innovative medium, but there is no doubt that NFTs are transforming the way art is created, perceived and sold. And they will continue to do the same in the future.
We also see NFTs entering other markets, from music to real estate, where they are used to represent true ownership of assets and make ownership history easily traceable.
And it’s not just hobbyists using and profiting from NFTs. In 2021, Canadian Grimes put her digital works up for auction, make $6 million in sales. His best-selling work was a single video called “Death of the Old,” which sold for almost $389,000.
There is no doubt that NFTs have the potential to transform various industries and we are yet to see what is next that they have stored for all these sectors.
The future of NFTs
Just as has happened with cryptocurrencies, NFTs have risen and fallen in value and trading volume. Recently, there was a slowdownsome of them facing major difficulties.
However, despite these boom and bust cycles, the future looks bright for NFTs. The market is expected to double by 2027, when it will be projected at $3.2 billion.
Furthermore, we saw two-thirds of investors still bet on NFTsdespite the recent decline in the market. 66.5% of NFT holders said they plan to stay in the market, with the majority believing assets will increase due to positive market sentiment and increased adoption.
Many also believe in NFTs because of their inherent properties: true ownership and provenance. These aspects are crucial to creating a more transparent and accountable digital ecosystem, towards which digital communities are moving. Tokens allow artists to not only establish ownership of their work, but also create new revenue streams and engage their communities.
Additionally, we are seeing NFTs transition from purely digital assets to a combination of digital and real assets, which will further accelerate their growth. They facilitate investments, bridging the gap between traditional finance and the blockchain space.
For example, in real estateTokens are used to split one or more properties into parts. This allows smaller investors to purchase smaller shares of a property, making property investing more accessible to a wider audience.
Tokenization in this sector also improves liquidity in a traditionally illiquid market. And through the use of blockchain technology, it reduces the risks associated with fraud and disputes.
With so much usage, NFTs will continue to evolve even further beyond gaming, where they are currently reshaping the way players interact with games. As more industries continue to adopt them, we can expect to see even more innovative use cases emerge. This will create new opportunities for both businesses and customers and shape the future of various industries.
Canadians are embracing the NFT revolution, especially in the gaming sector. With more innovative uses emerging, we can expect to see even more jump on the trend and explore everything NFTs have to offer.
