Only a few months ago, the expression NFT was explodingall over the internet. Now to the latest trend, the skyrocketing costs fordigital prowess sold as NFTs- The Christie’s auction fordigital artist, Beeple, coming to a close a few moments ago, the final dictation, $69 million. $69 million. I think it probably signifies digital craftsmen here to stay. Anybody in this sector has to admit that they were offended by the size and the inhumanity andspeed that the industry evolved so quickly. The number of walletsthat were purchase NFTs skyrocketed the numberof transactions of NFTs, across the board skyrocketed. And the prices for manyNFT masters also went up, but that came here to highly, very fast. Once red hot NFTs arenow chill off a bit.The secondary busines for the majority of Beeple’s illustrations today is down 90 -9 5% from the heyday, as is most NFT art. But even more recently, NFTs had been on the rise once again. And even with significant ethic volatility in NFT artwork, NFTcollectibles like NBA top shot and NFT-based video gameslike “Axie infinity” have surged in popularity. The correction that kinda happened with the NFT art side is healthy. And what we’re gonnasee come out of that now are projects that actually have practicality, that will be able to affect amuch wider amount of beings. I think that’s where the feeling is. And many companies are speculation that NFTs will penetrate thevideo game world in a big way, which if successful, could open NFTs to a massive brand-new public, and forever modify the waywe quality digital objects.We are in the process of an exodus from the physical worldto these digital worlds that have been createdover the last 20 years. And that continue to be created and where people arespending an increasing amount of their intentional day. You may have heard by now that NFTs stands for non-fungible token. But justifying exactly whatthat signifies can get complicated. So for our purposes, what you need to know is thatthrough blockchain technology, digital objects, like a JPEGfile or a virtual sneaker, or even a meme that you’dnormally think about as being infinitely reproduciblecan now be made scarce. So for example, if you’re clever, the video you’re watching right now could be downloaded from YouTube, and you could copy and pasteit as much as you’d like. In theory, it is infinitely reproducible. Tokenizing or minting is theprocess you can go through via blockchain, where you cancreate a record of scarcity.In the blockchain, you can enter into a ledger that there are only 1,000 versions of this video or 100, or even exactly one. Taking something that wasinfinitely replicatable and rendering it artificial scarcity. And if you’re rushing out to try and download this video now, thinking you’ll make a quick buck, that’s not exactly how it labor. Only the holder of the NFT and what are known as digital wallets can actually own its consideration of this agenda item. And they can choose to resell them in exchange for cryptocurrencies. But while we have seensome high-pitched sales price, are buying these NFTsactually a good investment? I would hesitate to callNFTs an asset class, they are an asset.In the same way that Iwould hesitate to call art an asset class, prowes is an asset. But for it to achieve an asset class, it certainly needs to be something that you can buy andsell, and buy and sell. This is Bloomberg’s artreporter, James Tarmy. So all you have to do when youthink about the artwork grocery, and you think about theprices that are paid for these $10 million illustrations ,$ 20 million make-ups, $30 million covers, is thinking about what kind of liquidity you need to have to spend $30 million on something that youcannot resell anytime soon. Sold! There is not a line of beings is looking forward to invest $30 million on the depict that you just bought. There might be one other person or maybe two other people, but that’s no guaranteethat those two other people wanna buy that illustration whenyou wanna sell that depicting. And this is similar in the NFT space. The number of beings be allowed to waste large sums of cryptocurrency on NFTs is relatively small.And a lot of people became very interested in climbing on the bandwagon. There was a world that was opened up to a general public thatthey didn’t know about. And that seems like a worldof infinite prospects. And so firms suddenlystarted liberating NFTs. Charmin toilet paper secreted an NFT. I just got an email aboutCampbell’s soups first NFT. And this isn’t just about artworks. This is also about the various NFTs that are connected togames and virtual lives, and so on. People are connecting houses to NFTs, they’re connectingphysical artworks to NFTs, they’re join portionsof an entire soccer team in a Mexican soccer league to NFTs.And then something weirdstarted to happen, right? More parties were makingNFTs than buying NFTs. So you had a lot of peopletrying to jump on a bandwagon that might not really haveexisted in the first place. And while the initial spurt of interest did drive more beings to participate in the NFT marketplace than before, those lists are still relatively small. According to a 2021 report by nonfungible.com, weekly active purses, in theory, the number ofpeople who bought and sold NFTs in a dedicated week peaked at exclusively 40,000. And if NFTs are going tobecome the resource class of the digital future, the number of buyers and sellers in the market must increase by a lot. There’s still a tremendousamount of friction. To get a Metamask wallet, to understand the ideaof harbouring private keys, to engage with this world, it’s a process.This is Sam Englebardt. He’s the general partnerat a venture business called Galaxy Interactive. They currently finagle a $500 million money investing in technology and material aimed towards the futureof digital natures. I devote a lot of time these days, first, was just trying to just definewhat the metaverse is. And then make sure we’re alltalking about the same thing, because I think we’restill quite a lanes away from an immersive worldlike “Ready Player One, ” being something that we all inhabit. Except for eating, sleeping, and bathroom interrupts, whatever parties wanna do, they do it in the Oasis. I think we are very, very close, and watching every day though, the exodus from a exclusively physical world to an increasingly immersivesynthetic digital life that doesn’t look likeone region we all go to, but it’s actually just the amalgamation of the different digital worlds that we experience on our various designs. And a good deal of participates are investing in thisfuture digital world. A recent Bloomberg intelligence report being of the opinion that the marketopportunity for the metaverse “couldve been” $ 800 billion by 2024. And for Galaxy Interactive, one of their biggestinvestments has been in gaming. I don’t believe long-term that simply by making something an NFT, it’s gonna be interesting enough to be all that meaningful unless you construct some sort of a game or metagame into the process of collecting itself. Merging NFTs with recreations has already seen some great success. One of the earliest breakoutNFTs was “CryptoKitties, ” cartoon felines that users canbuy, sell, and even engendered. The NFT became so favourite at one point that it blockage the entireEthereum network back in 2017. And it continues to havean active community today.And one of the drivers ofincreased digital purses post the NFT boom in early 2021 has been a game called “Axie Infinity.” These pokemon-like creaturesare all unique NFTs that a customer can buy into and rank up by playing in a brand-new business pattern known as play-to-earn. What could be better than a free recreation? Well, how about a gamethat bribes you to play it. So far, it’s allowed beings for the development of economies likethe Philippines and Vietnam to earn real money through playing. And now a unit of veteranvideo game makes at Mythical Games are working on their first NFT basedgame, “Blankos Block Party.” With real toys in real world, the way to keep their value is you articulated them in a casket, you framed them on a shelf, you leave them there, but with “Blankos, ” as you play with them, they get better. Most recreations, if you boughtSpider-Man character or you bought a “League of Legends” skin, they’re virtual entries. They stay within that ecosystem. Once you buy them, you bought them, right? There’s nothing else youcould really do with them at that point.And what we’re doing in a kind of experimentation with Blankos is participates own them. They can sell these resources, they can level them up, and paste them up to createnew ones and all that. So it actually grants theplayers a good deal of impunity to build, continue, and make. This is Mythical Games CEO, John Linden. He encounters plays as a greatmeans to introduce more parties into the NFT and crypto world.So one of the goals inMythical was we really wanted to bring this concept ofblockchain and NFT resources to the mainstream gamer, right? So maybe someone that doesn’tfully understand crypto and is not an investor in Ethereum, we really wanted to make sure that they could partake in this economy. And his success in this space isn’t definitely abouthaving big headline grabbing single asset sales, but rather having a muchlarger volume of marketings overall. We’re not thinking aboutit in areas of a $10 item is worth$ 1 million the next day. We’re thinking aboutit words of a $10 entry that becomes usefulnes $25. And a $25 item that becomes value $40. And a $40 item that becomes merit $75. And those are still, if you think about it, those are amazing. They don’t sound naughty, but they’re amazing returns on investments, right? So we’re emphatically thinking about it in terms of something that’s obtainable. Something that the average consumer can actually partake in.Latest trades, $55, $20. Not kind of a new fine art to were only a very few select people can actually be understood that familiarity because the numbers are just so ridiculous that you can’t can’t participate. But developing world markets for NFTs currently can come atsome quite large expenditures. Each transaction requires a ton of energy from computers all around the world, potentially developing inincreased carbon emissions. And although the Ethereumnetwork is hard at work to reduce this overall energy consumption, it does remain to this day, too high to support a scaled copy of this prototype. What we’re starting tosee technologically now is the need to advance the underlying tech so that you can have a business around the purchase, andsale, and trading of objectives that are$ 1,$ 5, $20, $50. That’s partly why Mythological Games is using their own blockchain technology within their Mythical fiscal engine. But it’s also because they believe that creating and sellingan NFT game engine will help create moreNFT competitions in the future. What we set out to doat the very beginning was to build this economic locomotive to where we could ultimately have a lot of the top sports in the world be able to access this type of technology, have the regulatory place comprised, have access to marketplace tech.Things that regular tournament studios wouldn’t be house themselves. We think that this type of economy will really permeatethrough every competition character. And frankly, I can seealmost every game out there could have some form of this. But building the technology is only the first step to building value. Gaming also offers another important step in this process, community. Blockchain doesn’t make a game better. We kinda joke now that if your competition sucks without blockchain, it’s gonnasuck with blockchain, right? What constructs this technologypowerful and interesting is the ability to ignite a community.And if you construct the claim society, then the things you own, digital objectives in a lot of cases, will be valuable within that community and people are gonna wanna own them, and they’re gonna wanna tradethem amongst each other. We encounter an stunning communityformed around Blankos. And even before the game came out, we’ve had about$ 1 million of Blankos sold because participates received that value, and they collaborated with each other. And were excited by theoutcome of where that can go. For someone outside ofthe Blankos community, It might seem outrageous to expend $5,000 on a virtual doll. Time like for many, it’s outrageous to devote $69 million on this Beeple’s part. Or for spend $120,000 on abanana duct taped to a wall. Value for things that have no use ethic is only the result of perception. A Picasso is just oil paint on canvas. It’s worth nothing, it does nothing. It is valuable because we as a society have decided that it’s valuable. Could NFTs become a brief, weird fragment of history? Utterly. Could they be an integral part of the route that we engage with each other and companies online? Absolutely.