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The NFT era has now advanced to a whole new level in the form of NFT 2.0. Several NFT 2.0 projects have already started their fight over the global spotlight. If you are new to the NFT industry and having a hard time adapting to this advancement in NFTs, then this blog is for you. Here you can have a detailed understanding of what improvements NFT 2.0 brings into the crypto sphere.
NFT 2.0 is an upgraded version of NFT 1.0. Several NFT enthusiasts and crypto entrepreneurs are expecting this NFT 2.0 to be an improved form of Non-Fungible token technology in many different manners. When it comes to the NFT 1.0 projects, the non-fungible tokens are nothing more than a pixel representation of multimedia using blockchain technology. In this new version, the NFTs can possibly do everything that cannot be done in the previous version of Non-Fungible token technology. NFT 2.0 will allow users to interact and play around with the digital asset they've purchased or earned. Here, the digital asset could be anything. Think about it like this. We had 'phones' which were 'dumb' talking machines. Now, almost everyone has a 'smartphone because the phone is able to use data in a meaningful way. NFT 2.0 is about making 'smart' and realistic NFTs.
The current iteration of NFTs is not designed for mainstream consumption. The onboarding system isn't smooth for consumers; the volatility is damaging to true fans, and it skews the artist-fan relationship. There is too much dissonance between the sticker price of an NFT and the value it is able to provide consumers, and many collections are seeing rough demand shocks as they fail to execute on their road maps.
The core NFT buyer is becoming savvier to rug pulls and scams, which means they are less likely to mint new collections. And though it's easy to look at declining volumes and see doom, the reality is that NFTs need a sizable washout in order to knock out those looking to get rich quickly and more properly incentivize true builders in the space. As the vaporware gets wiped out during a bear cycle, the antifragile companies that can weather the storm when shifting from Web2 to Web3 will thrive. Agencies and platforms, if timed incorrectly, will be wiped out, but those prepared for an email-Esque shift will maximize high-margin, high-touch projects while capturing long-tail revenue streams.
Despite some uncertainties that have been shared about NFTs over the past couple of years, one thing remains absolutely certain, NFTs are here to stay and they will be a huge part of the future of the art world. The art market has already transformed a lot in recent years and the results of the pandemic on the art market have caused an even bigger shift away from the traditional modus operandi. Moving away from the age of invention, experimentation, and the big explosion, there are endless opportunities and unlimited potential for the future of NFTs now that they exist within the mainstream space.
