As digital artists onboard blockchain technologies in order to sell NFTs, we can expect to see a major shift in the video gaming industry as well.
Just four years ago, Jamie Dimon, the head of one of the world’s largest banks, JP Morgan, called bitcoin (BTC) a fraud. In the current year, JP Morgan’s top executives call for involvement in cryptocurrencies.
At the same time, their financial analysts project bitcoin to rise above $100,000 and supplant gold as a real asset hedging against inflation. Needless to say, the past year has been tremendous for bitcoin.
As the mainstreamer of blockchain technology reaching over one trillion market cap, bitcoin opened the entryway to the entire ecosystem. Meanwhile, ethereum’s (ETH) blockchain has one big advantage — programmability in the form of smart contracts.
These computational pieces of code auto-execute on the Ethereum blockchain, making it possible to create:
automated market makers (AMMs);
decentralized exchanges (DEXs);
yield farming — earning interest rates based on stakes in liquidity pools within AMMs.
Altogether, the decentralized finance sector currently holds over $40 billion locked-in assets. This accounts for two major forces popularizing blockchain technology — bitcoin and DeFi dApps.
A third major blockchain driver has also seen deep market penetration in the last year — non-fungible tokens (NFT). These are digital collectibles from a variety of sources, minted by smart contracts on NFT marketplaces as unique, incorruptible, and traceable.
22 million people tuned in for the final moments of @Beeple's historic sale this morning, which totaled $69.3 million. Relive it from the artist's POV in this link! #beeple #digitalart #digitalartist #artist #art #thefirst5000days #nft https://t.co/XaREV5Fdvu
In fact, NFTs might be more important to mainstream blockchain than DeFi protocols emulating banking products and services. The latter can be quite a boring subject, but when popular artists like Beeple sell a single NFT for $69 million, the power of such sensationalism cannot be overstated.
Just four years […]