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Cartoon Art NFTs May Be Over-Hyped, But That’s Only a Small Piece of What NFTs Can Do

Cartoon Art NFTs May Be Over-Hyped, But That’s Only a Small Piece of What NFTs Can Do

You may have heard of those fun little things called “NFTs” that have been absorbed into mainstream culture in recent years. If not, welcome from Mars; How was your journey? NFTs are everywhere, and few things seem so simple yet utterly bewildering. What is an NFT? The image of a monkey?

A pixelated person? A farce? How will it work, and why is it valuable? What makes an NFT unique? Regardless of whether you understand what it is, the NFT market has exploded.

News articles, price and demand data releases, and murmurs of a “bubble” all evoke similar trends. Beanie babies, dot-com domains, even as far back as the tulip mania of 1637. That uncertainty sheds new light on that multimillion-dollar 8-bit graph you may have invested in… On the other hand, we can then NFT craze compare just as well as other fads, bubbles or hypes. Even in hindsight, everyone seems to have a different opinion, with some claiming that NFTs are overpriced while others claim that the NFT market is still a big win for the creator industry.

Yet others would say that we are missing the point and that NFTs are much more complex than we think. Let’s examine this last argument to see why NFTs have a much deeper utility than the arts industry and their ability to transform industries. It is inevitable.

NFTs Are Technology

The key to unraveling the “hype versus utility” of NFTs is that NFTs are not just works of art. You are not just a receipt. And they shouldn’t be worth millions. An NFT is a technology that solves big problems across various industries.

While you may hear phrases like “added value” and “usefulness,” they don’t convey a complete picture of what an NFT can do when used correctly. First, we need to understand these unique attributes of NFTs, and then we can begin to discover the many forms of innovative value they can offer. 

Let’s start with the name: non-fungible token. This means a unique asset. Because the NFT is recorded on the blockchain, it is immutable and cannot be secretly changed.

This transparency and evidence are compelling. In addition, each NFT contains metadata that is also protected and immutable.

This means digital or physical artwork has an NFT representing ownership for typical uses. This is like a receipt or a car title. It differs from a ticket in that it is verifiable (whereas a permit can be forged), and it differs from a title in that it does not require an official government agency to manage the creation, distribution, and recognition of its authenticity. So far, so good? If we go one step further and look at some of the biggest challenges in decentralized finance, we face the challenge of authenticity and compliance of P2P transactions.

How can you prove that a transaction occurred within the set terms (and without having to write your smart contract)? How does a person comply with the required know-your-customer/anti-money laundering (KYC/AML) rules? by governments? These are essentially impediments to a fully decentralized P2P finance economy.

An Evolution of Utility

Let’s look at the critical attributes of NFTs. We can go far beyond the hype and create an ecosystem with much more sustainable potential than digitized animation (although, as art, there can always be a market for that too). However, this is probably just the beginning. 

As NFTs mature and Web3 continues to grow and evolve, we will find new use cases, opportunities, and industries that can leverage its essential properties. Arts-based NFTs are unlikely to go away. , and that’s great. The market can get cold and ebb and flow, but a robust and traditional art market still thrives today.

NFT is much larger than art (cartoons and visual arts alike). It’s a technology that has already started to change the world.

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