The NFT (non-fungible token) is a decentralized market where any digital asset can be traded. In this article, we will look at the state of the NFT Marketplace, the most important challenges and trends in this industry, and what’s next for the NFT.
NFT is a term that came from the word “non-fungible tokens”, it’s a digital asset that can be easily differentiated from others in the same set. NFT can be considered a perfect substitute for in-game items in MMO games, virtual items in MMORPG games, or precious items in collectible card games. The concept of NFT was introduced to the world by OmiseGo. They plan to launch NFTs through their OmiseGo Ecosystem which will be launched soon.
A big challenge for NFT is to make them widely used by millions of gamers. So far, the NFT ecosystem is still limited to a small niche. But according to a survey, almost every person in the world has at least one game account. In 2018, the industry size of the gaming industry is more than 1.5 trillion dollars, and the volume of digital game assets is more than $27 trillion. Based on that, we can say that there is a very big potential for NFT.
NFT is also called digital collectibles, but there are still some differences between NFT and collectibles. NFT can be traded while collectibles are not, collectibles are bought once, while NFT can be traded. In addition, create a NFT is a new concept for gaming while collectibles are not. Because of these differences, there are many challenges in the NFT industry which will be discussed in the following paragraphs.
The NFT marketplace is a decentralized market for trading digital assets. There are a lot of solutions that are designed for NFT. We can call them NFT applications. On top of that, there is also a decentralized exchange (DEX) which has similar functionalities as centralized exchanges. We can name them decentralized exchanges.
The biggest problem for the NFT market is that there is no unified platform for all NFT solutions. All of them can be a good solution for their niche, but this doesn’t mean that we can integrate all of them into a single platform. Because of this, there is a big challenge for the NFT industry. The blockchain space is so vast that it will take a lot of time to integrate all of them. In the future, we will have to choose to use a centralized exchange for trading or a DEX.