Popular non-fungible tokens (NFTs) have a falling baseline price. Everywhere we look, we hear accounts of enormous sums of money vanishing, and nobody is immune. Everyone is monitoring the cryptocurrency industry to see where innovation will lead us. Nevertheless, it often seems as though the news focuses on trivial market fluctuations caused primarily by arbitrary eruptions of activity in trading and issuing NFTs.

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The future is evident: we must abandon the common perception that NFTs are limited to the purchase and sale of pixels.

The time has come for industry leaders to concentrate on the possibilities. As we advance toward the new frontier where the digital and physical worlds converge, it is time to concentrate our synergy on developing actual use cases for NFTs.

In recent years, there have been countless variations of anecdotes about the value of wildly popular (and for a time, liquid) NFTs and their subsequent precipitous price decline. Without intrinsic value beyond what the market determines their value to be, how valuable can these pixels be?

Digital ownership ensured that an artist's work remained in the artist's portfolio or the buyer's possession, effectively combating the larceny and unauthorized use of digital art, according to early discussions surrounding NFTs. This opened a new avenue for the technology and propelled some artists into the stratosphere (and rightly so for many): Beeple broke records with "Everydays – The First 5000 Days," which sold for $69.3 million, until Pak's series of NFTs "The Merge" brought in an astounding $91.8 million.

The revolutionary technology underlying NFTs has obvious applications in both the art and collectibles industries. However, the technology has been increasingly exploited and used primarily as a novelty. Market`places have witnessed the sale of basic jpegs for tens of thousands of dollars, despite the lack of any real intrinsic value. The primary value proposition of these NFTs is that purchasers can resell the images for a profit.

Time has repeatedly demonstrated that the overwhelming majority of ETFs are exorbitantly overvalued.

It is time for the industry to contemplate on what intrinsic value may look like for non-financial securities (NFTS). A new horizon is approaching. This represents the digital universe that can be physically touched and interacted with for COZ. In other terms, the NFI has been delivered.

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In practice, an NFI involves providing a tangible asset, such as a ring, with a software development kit. Theoretically, these items cannot be taken because all assets that use NFI technology are unique, allowing ownership to be established. On a more technical level, the technology reveals a censored, counterfeit-resistant payload that is cryptographically bound to the item and the blockchain. It entails equipping any tangible object (such as a ring, a painting, a T-shirt, or a purse) with an interaction-capable software development kit.

Companies are taking note. Independent Non-Fungible Security (INFS) is a trading platform that combines blockchain with real-world guarantees in the form of one-of-a-kind gold tokens encrusted with diamonds and other precious stones. Crurated, a wine community, utilizes blockchain technology and non-fungible tokens for each bottle of wine that enters its facility. Each bottle is allocated a non-fungible token (NFT), which is recorded on the blockchain, to verify authenticity and provide crucial information, which is then updated as the wine is sold.

Despite being an emerging technology, NFIs exhibit enormous potential in the areas of traceability (as each physical asset is cryptographically unique and its information is stored on the blockchain), providing proof-of-ownership (as blockchains are essential for managing and asserting ownership in a decentralized manner), and attaching loyalty rewards to distinct physical assets.

These examples, which represent the beginning of what is conceivable, illustrate the key defining characteristic that is so frequently absent from the discussion: intrinsic value.

The increasing use of NFTs in real estate, the preservation of cultural and pertinent political information, and even the facilitation of fundraising for the world's disenfranchised will inevitably have a positive impact on the future of innovation.

Regarding the future, we must concentrate on these concrete and, most significantly, practical use cases. They have far too much potential to be disregarded in favor of newsworthy events.

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Observing the rise and decline of prices on NFT marketplaces, it is simple to conclude that the cycle will continue indefinitely. However, when we take a step back, the potential of NFTs becomes abundantly obvious.

We are just beginning to comprehend what is possible. Opportunities exist at the intersection of the digital and corporeal realms.

Timothy Adams

Tyler Adams, a pioneer of the Neo ecosystem, was instrumental in promoting Neo's accessibility with a set of Python tools that paved the way for a new generation of developers to join the community. Tyler is a co-founder of COZ and a primary contributor to the Neo community, having lead initiatives such as a multi-product wallet platform with over one million cumulative downloads and PROPS, the general smart contract framework for N3. Tyler, a recognized thought leader in decentralized computing, has presented to the European Parliament on blockchain's impact on identity and personally identifiable information, as well as blockchain's impact on the global workforce, in an effort to enhance forward-looking regulatory decision-making.