Are NFTs Entering a ‘Golden Age’? Expert Roundtable

Are NFTs Entering a ‘Golden Age’? Expert Roundtable

While the initial hype that surrounded non-fungible tokens (NFTs) in 2021 may have died down in the last couple of years, a number of people in the space continue to make bullish bets on the industry’s future.

Of course, the U.S. Securities and Exchange Commission’s (SEC) recent statement on potentially classifying NFTs as securities has stirred some speculation and volatility in the market, but it has also drawn attention back to it.

In more recent years, NFTs have moved beyond their speculative origins, expanding into use-case applications like gaming, real estate, the luxury industry, museums, ticketing, and intellectual property.

Fad or valuable (and potentially profitable?) products in their own right? Let’s revisit the world of NFTs.

Key Takeaways

  • Initially driven by speculation, NFTs are evolving into tools with practical applications in gaming, real estate, and more.
  • NFTs provide artists with irrefutable proof of ownership and authenticity, protecting their work from unauthorized reproduction and forgery.
  • The value of NFTs could be compared to that of traditional art – emphasizing long-term ownership and appreciation.
  • And then there are NFTs increasingly used for tokenizing real-world assets like property, adding tangible benefits and liquidity.
  • The future of NFTs lies in their practical applications rather than speculative excitement.

The NFT Space Is Going Through a Metamorphosis

The life cycle of NFTs thus far could be compared to that of a butterfly. Born as caterpillars, they started out as something different from their future form, undergoing a transformative cocooning process before reaching that final butterfly stage.

It seems that the current stage in the life cycle of NFTs could be compared to that cocooning stage — appearing dormant but quietly undergoing transformation, preparing to emerge in a new and evolved form.

A recent study conducted by NFT Evening made a loud statement: 96% of NFTs are considered “dead” based on three factors: zero trading volumeminimal seven-day sales, and inactivity on Twitter.

The study further emphasized that the average lifespan of an NFT is also notably shorter than the average span of more traditional crypto projects.

“The average lifespan of an NFT is notably short. The average lifespan of an NFT is now 1.14 years, which is 2.5 times shorter than the average lifespan of traditional crypto projects. This short lifespan reflects the intense speculative nature of NFTs, where rapid price fluctuations and the novelty of digital assets fail to sustain long-term value.”

However, such findings could also be argued.

NFTs, unlike cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH), are not meant to be traded constantly. While BTC and ETH function as digital currencies and stores of value with high liquidity, NFTs represent unique digital assets, often more akin to owning traditional art or collectibles.

Just as you would not trade a Monet or a Picasso every day, NFTs hold an intrinsic value that is less about constant market activity and more about long-term ownership and appreciation.

Speaking with Techopedia, Anndy Lian, an inter-governmental blockchain advisor and author of NFT: From Zero to Herohighlighted that the NFT space is currently undergoing that exact “metamorphosis” process.

“We are actually seeing a shift happening right now, moving away from pure speculation and towards more concrete use cases.  For example, digital artists are using NFTs to prove ownership and authenticity of their work, and the gaming industry is exploring NFTs for in-game items and unique experiences.”

Needless to say, NFTs continue to be novelty-driven and playful; however, their focus is undoubtedly starting to shift gradually toward utility and long-term value.

NFTs Continue to Open Doors for Artists

For years, one of the most prominent issues in the arts industry was proof of ownership. Artists often struggled with unauthorized reproductions, forgeries, and disputes over who truly owned a piece, especially in the digital era where copying and sharing artwork online became effortless.

NFTs provide undeniable proof of ownership for artists’ digital creations, arguably a silver bullet for those who have struggled with copyright infringement in the digital age.

Glam Beckett, the creative director of Sad Girls Bar, an NFT collection recognizable for its monochrome, hand-drawn female profile pictures, added that NFTs are an additional revenue stream and a way for many artists to attract new audiences and collectors.

In addition, NFTs help artists unleash more of their creativity, allowing them to experiment with animation, artificial intelligence (AI), and music.

Rhiannon Fletcher, an up-and-coming NFT artist was also bullish on the possibilities the technology gives new creators. 

“The NFT movement is the most significant artistic revolution we have seen since the invention of the photograph. Artificial Intelligence is breaking down barriers, and the blockchain, with its provenance and smart contracts, is providing the tools that artists need to be fully independent.

“The global community forming around the NFT art scene should also not be dismissed. Online communities are on the rise, allowing people to connect in real-time from anywhere.”

Beyond that, the technology powering NFTs also serves as a direct line to collectors, cutting out traditional gatekeepers like galleries.

“This means artists can build closer relationships with their audience and potentially earn a more significant share of the profits from their work.

“The ability to program royalties into NFTs is also revolutionary, allowing artists to earn a percentage every time their work is resold,” Lian said.

NFTs Are Moving into RWA — It’s a Positive Change

While some people may not be such big fans of the initial NFT phase of profile pictures with collections such as Bored Apes Yacht Club and CryptoPunks emerging at the top, they do understand that they have played a crucial role in helping the industry develop into what it is today.

“I often equate PFP [profile picture] NFTs … to a bar selling coasters or matchbooks with their logos. PFPs served their purpose by driving the first sales cycle and drawing attention and eyeballs to the technology.

“Without this initial buy-in and hype, NFT projects would not have gotten the funding to work on the underlying tech,” Fletcher explained.

Fletcher added that NFT ticketing and real-world assets (RWAs), on the other hand, add more positive momentum to the industry as people start interacting with the technology in real-world situations.

“I have friends on Facebook who have attended concerts with NFT tickets, even though they are vocally against crypto.”

Lian added that RWA tokenization through NFTs has also the potential to streamline transactions and unlock liquidity in traditionally illiquid markets.

2021 NFT Craze Fueled By FOMO

There is no doubt that the 2021 levels of mainstream NFT frenzy were fueled by speculation and fear of missing out (FOMO), seeing how collections would sell for an unthinkable amount of money.

Despite that, saying people are no longer interested in the “OG” NFT movers would also not be entirely true, as headlines emerged on September 9, 2024, that a CryptoPunk was bought for 550ETH ($1,265,786.46 at the time of purchase).

Lian is also bullish on the future of NFTs, highlighting that the assets can totally achieve mainstream appeal again, but in a different way — rooted in their utility and tangible benefits.

“Think about it: most people do not care about the technicalities of blockchain. They care about what it can do for them.  If NFTs can seamlessly integrate into our digital lives — enhancing gaming experiences, streamlining ticketing, revolutionizing digital art — then mainstream adoption will follow naturally.”

Fletcher compared the initial NFT boom to BTC, noting that BTC was also “pure speculation in its beginnings,” with first news cases grounded in casinos and poker games.

“Non-speculative NFT projects will ultimately become integrated into everyday life. In 20 years, we will wonder how we ever got along without them, much like many people can’t imagine a world before the Internet.”

The Bottom Line

With an overwhelming amount of discussions within the crypto communities that this could be the end of NFTs, it surely does feel refreshing to be met with such positive remarks.

I have always been fascinated with NFTs. I truly enjoy how a groundbreaking technology such as decentralized finance (DeFi) can integrate so easily with the cultural industry, opening doors for artists, creators, and musicians.

So, with all of this in mind, I leave it to you: could we really be entering the “golden age” of NFTs?

 

Source: https://www.techopedia.com/are-nfts-entering-a-golden-age-expert-roundtable

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Data security and analytics in the age of AI and Blockchain: A Cryptocurrency case study

Data security and analytics in the age of AI and Blockchain: A Cryptocurrency case study

In today’s rapidly evolving digital landscape, data security and analytics have become paramount concerns, especially with the advent of artificial intelligence (AI) and blockchain technology. These innovations promise to revolutionise various sectors, including finance, healthcare, and supply chain management, by enhancing efficiency, transparency, and security. However, they also introduce new challenges and vulnerabilities that must be addressed to fully realise their potential. I will share the intricacies of data security and analytics in the context of AI and blockchain, using cryptocurrency as a case study to illustrate the opportunities and risks involved.

The rise of AI and Blockchain

Artificial intelligence and blockchain are two of the most transformative technologies of the 21st century. AI, with its ability to process vast amounts of data and generate insights, is reshaping industries by automating tasks, improving decision-making, and enabling new business models. I remember reading a report by McKinsey, AI could potentially deliver an additional $13 trillion to the global economy by 2030.

Blockchain, on the other hand, offers a decentralised and immutable ledger system that ensures transparency and security in transactions. Originally developed as the underlying technology for Bitcoin, blockchain has found applications in various fields, from supply chain management, education to healthcare systems. A study by PwC estimates that blockchain could boost global GDP by $1.76 trillion by 2030 through increased transparency, efficiency, and trust. To be honest, given how the regulators are approving cryptocurrencies, that amount could be 10 times more than what was estimated.

Cryptocurrency: A Case Study

Cryptocurrency, a digital or virtual form of currency that uses cryptography for security, is perhaps the most well-known application of blockchain technology. Bitcoin, the first and most prominent cryptocurrency, was introduced in 2009 by an anonymous entity known as Satoshi Nakamoto. Since then, thousands of cryptocurrencies have emerged, with a total market capitalisation exceeding $2 trillion as of 2023.

Cryptocurrencies operate on decentralised networks, typically using blockchain technology to record transactions. This decentralisation offers several advantages, including reduced transaction costs, increased transparency, and resistance to censorship. However, it also presents significant challenges in terms of data security and analytics.

Data security in Cryptocurrency

One of the primary concerns with cryptocurrencies is the security of digital assets. Unlike traditional financial systems, where transactions are mediated by banks and other financial institutions, cryptocurrency transactions occur directly between users. This peer-to-peer nature of transactions, while offering greater autonomy, also makes cryptocurrencies a target for cybercriminals.

Just last year alone, the industry saw a record of 286 crypto thefts incidents which added up to be around $2.3 million. If you total all the crypto hacks from 2011, there are more than $19 billion. High-profile incidents, such as the Mt. Gox hack in 2014, where approximately 850,000 Bitcoins were stolen, highlight the vulnerabilities in the cryptocurrency ecosystem. These security breaches often result from weaknesses in the underlying technology, such as software bugs, as well as human factors, such as poor password management and phishing attacks.

Blockchain technology itself is inherently secure due to its decentralised and immutable nature. Each block in the blockchain contains a cryptographic hash of the previous block, a timestamp, and transaction data, making it extremely difficult to alter past transactions without altering subsequent blocks. However, the security of the overall system depends on the implementation and the security practices of the users.

The role of AI in enhancing security

Artificial intelligence can play a crucial role in enhancing the security of cryptocurrency systems. AI algorithms can analyse vast amounts of data to detect patterns and anomalies that may indicate fraudulent activities. For instance, machine learning models can be trained to identify unusual transaction patterns that deviate from a user’s typical behavior, flagging potential security threats in real-time.

AI can also be used to improve the security of cryptocurrency exchanges, which are often targeted by hackers. By analysing network traffic and user behavior, AI systems can detect and mitigate distributed denial-of-service (DDoS) attacks, phishing attempts, and other cyber threats. Additionally, AI-powered identity verification systems can enhance the security of user accounts by using biometric data, such as facial recognition and fingerprint scanning, to prevent unauthorised access.

Data analytics in Cryptocurrency

Data analytics is another critical aspect of the cryptocurrency ecosystem. The decentralised nature of blockchain technology generates a vast amount of data, which can be analysed to gain insights into market trends, user behavior, and network performance. This data can be invaluable for investors, developers, and regulators.

For investors, data analytics can provide insights into market trends and help identify investment opportunities. By analysing historical price data, trading volumes, and social media sentiment, investors can make more informed decisions and develop strategies to maximise their returns. Here’s a report by Singapore Management University on predicting Bitcoin and Ethereum pricing using Tweet data and Google Trends.

For developers, data analytics can help optimise the performance of blockchain networks. By analysing transaction data, developers can identify bottlenecks and inefficiencies in the network, enabling them to make improvements and enhance scalability. For example, Ethereum, the second-largest cryptocurrency by market capitalisation, has undergone several upgrades to improve its transaction throughput and reduce fees, driven by insights gained from data analytics.

For regulators, data analytics can provide valuable insights into the cryptocurrency market and help detect illegal activities, such as money laundering and tax evasion. By analysing transaction data and identifying patterns associated with illicit activities, regulators can develop more effective policies and enforcement strategies.

The intersection of AI, Blockchain, and data security

The intersection of AI, blockchain, and data security presents both opportunities and challenges. On one hand, AI can enhance the security and efficiency of blockchain networks by detecting and mitigating threats, optimizing performance, and providing valuable insights. On the other hand, the integration of AI and blockchain also introduces new risks and complexities.

One of the key challenges is the potential for AI algorithms to be manipulated or biased. AI systems rely on large datasets to train their models, and if these datasets are biased or manipulated, the resulting models may produce inaccurate or unfair outcomes. For instance, if an AI system used to detect fraudulent transactions is trained on biased data, it may disproportionately flag transactions from certain regions or demographics, leading to unfair treatment of users.

Another challenge is the scalability of AI and blockchain systems. Both AI and blockchain require significant computational resources, and integrating the two technologies can exacerbate scalability issues. Training AI models on blockchain data can be computationally intensive, and the decentralised nature of blockchain networks can make it difficult to achieve the necessary computational power. Solutions such as off-chain computation and layer-2 scaling solutions are being explored to address these challenges.

The future of data security and analytics in Cryptocurrency

The future of data security and analytics in the cryptocurrency ecosystem will likely be shaped by ongoing advancements in AI and blockchain technology. As these technologies continue to evolve, they will offer new opportunities to enhance security, efficiency, and transparency in the cryptocurrency market.

One promising development is the use of zero-knowledge proofs (ZKPs) in blockchain networks. ZKPs are cryptographic techniques that allow one party to prove to another that a statement is true without revealing any additional information. This can enhance the privacy and security of blockchain transactions by allowing users to verify transactions without exposing sensitive data. For instance, Zcash, a privacy-focused cryptocurrency, uses ZKPs to enable confidential transactions. Another example would be Silentswap, a decentralised, private, non-custodial protocol that allows users to swap crypto tokens while safeguarding their privacy.

Another development is the integration of AI and blockchain in decentralised finance (DeFi) platforms. DeFi platforms use blockchain technology to offer financial services, such as lending, borrowing, and trading, without intermediaries. By integrating AI, these platforms can offer more sophisticated financial products and services, such as algorithmic trading and automated portfolio management. Bybit’s TradeGPT is one good example. This AI powered tool empowers users with enhanced understanding and formulation of trading strategies within the exchange platform. If you are platform agnostic, COPX used AI to co-pilot, scrutinising real-time market data alongside personal preferences to create customised trading strategies. However, this also introduces new security risks, as AI algorithms can be exploited by malicious actors. Higher security measures must be implemented.

Bottom Line

In conclusion, data security and analytics are critical components of the cryptocurrency ecosystem, especially in the age of AI and blockchain. While these technologies offer significant benefits in terms of efficiency, transparency, and security, they also introduce new challenges and vulnerabilities.

By leveraging AI to enhance security and using data analytics to gain insights, the cryptocurrency market can continue to grow and evolve. However, it is essential to address the potential risks and ensure that these technologies are implemented in a fair and secure manner. As the digital landscape continues to evolve, the intersection of AI, blockchain, and data security will play a crucial role in shaping the future of finance and beyond.

 

 

 

Source: https://ciosea.economictimes.indiatimes.com/blog/data-security-and-analytics-in-the-age-of-ai-and-blockchain-a-cryptocurrency-case-study/111916894

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j

NFT 2023 SEOUL – The Future of Art in the Digital Age

NFT 2023 SEOUL – The Future of Art in the Digital Age

NFT 2023 SEOUL is a dynamic and forward-thinking event that dives deep into the convergence of art and technology in the digital age. With a lineup of expert speakers covering a wide range of topics, the event explores how NFTs, generative AI, blockchain, and decentralized technologies are reshaping the art landscape.

From discussions on the transformative power of AI-generated art to insights into decentralized curation and the fusion of physical and digital art forms, attendees will gain a comprehensive understanding of the evolving art world. The event also highlights the role of NFTs in media and other industries, showcasing their influence beyond traditional art realms.

Thoughts on the Evolution of Art in the Age of Generative AI, NFT, and other Digital Technologies – 차인혁: Explore the transformative impact of generative AI, NFTs, and digital technologies on the world of art.

The following are the key speakers for Part 2:

ART & TECHNOLOGY & Community – Mariko Nishimura: Delve into the dynamic relationship between art, technology, and the influential role of communities in shaping the art landscape.

Creative collaboration, co-creation, and decentralized curation – Aleksandra: Discover how decentralized curation and collaborative approaches are redefining the art world in the context of NFTs.

Decentralized Dreams: The Journey of NFTs in the Age of AI and Web3 – Anndy Lian: Trace the exciting journey of NFTs within the realms of AI and Web3, exploring their potential and impact.

Blockchain as a new medium for ART + Coding ART – Nori: Dive into the technical aspects of utilizing blockchain as an artistic medium, where coding meets artistry to create innovative works.

Legitimate / Physital- NFT 기술 실제적 융합 – Calvin: Explore the practical integration of NFT technology in art, addressing authenticity concerns and the fusion of physical and digital art forms.

Web3 Art NFT Platform – 2r2.io – 정창희: Showcase the capabilities of the 2r2.io NFT platform within the Web3 ecosystem, shedding light on tools available for artists and collectors.

NFT NOW: Future of media and beyond – Alejandro Navia: Gain insights into how NFTs are shaping the future of media and extending their influence across diverse industries beyond traditional art.

This event promises a comprehensive exploration of NFTs, generative AI, blockchain, and their profound impact on the evolving world of art and digital expression.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j