Since 2021, NFTs are considered one of the most valuable discoveries of blockchain technology: creating tokens to store Non-Fungible info. One of applications of NFT that has reached users is GameFi when NFT is used as a unique asset in games, while also providing voting rights in governance. With NFT, gamers not only play games but also make money from playing games when earning and selling NFTs, participating and supporting game development through governance mechanisms
[1].
In addition, some other application cases of NFT are starting to be thought of such as storing educational qualifications, product origin, medical records... but currently NFT is only used to place as avatars on social network. And that is no longer true today.
In 2022, Meta tested a feature that allowed users to use NFTs as avatars on Facebook and Instagram, then Meta discontinued this feature in early 2023
[2]. Similarly, Twitter also allowed Premium users to use NFTs as avatars in early 2022, but at now new X users can no longer experience this feature
[3]. We don't have any explanation on this matter.
Clearly, as Metaverse trend ended, NFTs have not retained their appeal and businesses need to make changes to attract users. Currently, Inscription trend is creating thousands of modern NFTs, where data is engraved directly into each token unit and stored on-chain. Thousands of tokens BRC-20, LTC-20, DRC-20, ASC-20... are attracting the attention and cash flow from investors so they have good growth, ORDI is an example. Meanwhile, traditional NFTs with data stored in IPFS are no longer the top choice. Flow is a leading blockchain in NFT space, the FLOW token price chart may represent the stagnation of traditional NFTs.
I understand the immutable on-chain value of modern NFT-Inscription, and I'm really worried about the future of traditional NFTs. NFT trading volume on Bitcoin is overwhelming NFT trading volume on the remaining chains
[4] – an anomaly that makes me more worried about chains's state, operational efficiency and existence of blockchain's original mission. In my opinion, up to now, blockchains do not have enough capacity to support NFT-Inscription effectively: the speed is still slow and transaction fees are still high. Traditional NFT on IPFS can be an optimal and better choice than NFT-Inscription.
Do you support traditional NFTs? Have you used traditional NFTs as avatars on social networks? Would you rather own a traditional NFT or an NFT-Inscription? Do you think traditional NFTs will soon be replaced by NFT-Inscriptions?
[1]
A deep dive into GameFi: How NFTs are shaping the future of gaming[2]
Meta winds down support for NFTs on Instagram and Facebook[3]
X removes support for NFT profile pictures [4]
NFT sales on Bitcoin hit record in December 2023