Key takeaways
The future of NFTs will depend on integrating existing technology with other systems and extending its usefulness to other sectors.
The security of NFTs and associated services will need to be strengthened, and users will also need to better inform themselves of the best practices to follow to protect themselves.
The NFT use cases we've seen develop over the past few years offer us a glimpse of what the technology will be capable of in the future, but no one can really predict what form the next major use case will take. .
The world of NFTs has already taken gigantic steps forward in a very short time, but the adventure is far from over; for the moment, we have only scratched the surface of the potential of this asset class.
A new phase of development has begun for NFTs
NFTs undoubtedly represent a new way of perceiving and appreciating digital uniqueness. Bitcoin was born 14 years ago: the concept of tokenized non-fungible assets protected by cryptography was then just a dream.
In some ways, we're already living in the future: the pace of development of non-fungible tokens is breakneck, and it's easy to forget that they're still in their infancy. NFTs still promise us a multitude of innovations and use cases.
In the eyes of the general public, NFTs are currently closely linked to several very specific sectors of the crypto universe, namely gaming, art, fashion and other creative spheres. However, it would be misguided to think that their technology will stop there.
As more and more Web2 companies look to apply NFT technology to their own business niches and industries, it is only a matter of time before new integrations emerge. Not all of them will necessarily be successful, but attempts will nevertheless multiply and NFTs will then enter a pivotal period for their adoption by the general public.
“By experimenting with new NFT integrations, we will make major breakthroughs in a relatively short period of time, and that excites me deeply. »
What will drive the future success of NFTs? Their infrastructure, the security standards and user protection we provide, the education of people and the creation of innovative use cases. There is no secret ingredient: we all know how to do it, and we can achieve all of this through the joint efforts of Web3 companies and digital asset exchanges, users and developers. creators.
How did we get there ?
Before we get stuck into the future, let’s take stock of the current situation. NFT technology is roughly 10 years old, 15 if you count the Bitcoin-based proto-NFT project Colored Coins.
Issued in 2014, Quantum from the Netcoin blockchain is likely the first NFT considered fully functional, and its creators Anil Dash and Kevin McCoy defined it as a “monetized illustration.” Indeed, the acronym “NFT” did not yet exist at the time: it was not until the end of 2017, or even the beginning of 2018, that it entered common parlance with the arrival of CryptoKitties and the publication of the standard ERC-721 on Ethereum.
We all know very well what happened next. As for Binance, its NFT journey began with the launch of the Binance NFT Marketplace in June 2021. We have since expanded it to transform it into a multi-chain hub welcoming NFT creators and collectors as well as brands. Here are our main strengths:
Nos collaborations : CR7, Franck Muller, Jimmy Choo, Mike Tyson, Alan Walker, etc.
Our features: liquidity aggregation, integration with marketplaces such as OpenSea and others in the future, and NFTFi staking.
Our multi-chain functionality: BNB Smart Chain, Ethereum and Polygon.
Now let's talk about our future, first of all our infrastructure and its exploitation to ensure a bright future for our NFTs.
Our priorities for the future
We believe that seamless, integrated experiences are the key to the future success of NFTs. Users will have a lot to gain if we manage to combine several facets of the NFT ecosystem into an easy-to-use platform offering competitive fees. For example, we can look at existing blockchains, markets and services to see how they adapt to each other optimally.
For Binance NFT, we want to design a future-ready NFT infrastructure, which involves several benefits for users that we have already implemented and continue to improve:
A seamless one-click experience.
Easy token conversions that make NFT transactions faster and simpler.
Low and affordable fees (e.g. our platform charges 1% service fee for NFT trading).
Better liquidity for NFT buyers, sellers and services.
Access to NFT analysis services.
Easily accessible fiat gateways.
Highly secure products and services that users trust.
All of these benefits and enhancements are essential to the future success of NFTs, but how they will be realized depends on the advancement of NFT technology. Multi-chain capabilities and liquidity aggregation are the two newest methods we are currently implementing: both are extremely promising for the development of the NFT universe in the future.
Multi-chain possibilities
One of the best ways to encourage the interconnection of the world of NFTs is to give users the means to evolve on multiple blockchains: in fact, each network has its own unique community and its own collections of Popular NFTs.
“To this end, we have already implemented multi-chain functionality on the Binance NFT Marketplace. »
The multi-chain functionality eliminates the need to manually switch between blockchains, a necessary process in the case of a decentralized solution. Users no longer need to carefully copy RPC nodes or purchase native tokens to pay their gas fees.
NFT Bitcoin support is a perfect example of a multi-chain implementation. The Binance NFT Marketplace will soon support the trading of Bitcoin Ordinals (NFTs), expanding the platform’s ecosystem.
Bitcoin Ordinals enable the creation of unique, immutable NFTs using Taproot and SegWit upgrades. Each satoshi comprising a BTC may be identified and exchanged along with additional data, which may include images, text, videos or other content added to each satoshi by registration.
Bitcoin NFTs allow us to offer users:
Unrivaled ease of buying and trading directly from a Binance account, eliminating the need for a separate Ordinals wallet.
Protecting Binance’s exceptional security and stability.
Marketplace aggregation
Beyond multi-chain capability, several popular NFT marketplaces are widely ready for integration, which will benefit users. Binance NFT allows you, for example, to access OpenSea from your Binance account, and this integration offers significant advantages to Internet users:
One-stop access to NFTs listed on Binance NFT (Ethereum and BNB Smart Chain) and OpenSea (Ethereum) with low fees applied to cross-platform purchases.
Improved metrics and data visualization for NFT collections and individual NFT pages to improve price analyses.
The inclusion of data from the OpenSea marketplace in the rankings displayed on the Binance NFT statistics page.
Such integrations give our users access to more varied collections, precise information, and low fees, since this is the direction we believe the world of NFTs should evolve.
The future of NFTs: safer with better pedagogy
Keeping user assets “SAFU” (safe) is not just Binance’s priority; it is also that of the ecosystem, users and developers who wish to increase the adoption and utility of digital assets across different sectors. The crypto world is still young, but many fungible token enthusiasts are already familiar with the security practices to follow. NFTs, on the other hand, have led to the emergence of a new wave of users who are less aware of the security measures to be applied.
“For the NFT ecosystem to thrive, we must make security a priority when we plan to enter new areas and integrate with other platforms. »
To strengthen this key aspect of our operations, we are constantly working to improve security measures and policies, always with the aim of protecting the interests of users above all else. Here are the guidelines of any reliable NFT platform:
Develop effective security practices.
Protect novice users.
Keep criminals off the platform.
Protect customer deposits.
Binance NFT operates as part of a centralized exchange to remove the most obvious security threats that are of particular concern to beginners. The following measures have been put in place:
No mnemonic phrases are used, and no complex portfolio management practices are in effect on the platform.
It is impossible to connect to DApps that may drain wallets.
We participate in verifying reported listings to prevent users from falling victim to a scam.
Product-related security features are accessible, such as account throttling, sending anti-phishing codes, and facial verification for NFT withdrawal and 2FA.
We are proud to announce that Binance's $1 billion SAFU fund also covers NFTs deposited on the Binance NFT Marketplace in the event of a loss due to hacking to provide additional peace of mind for NFT owners trading in our ecosystem.
“In the future, more internet users may benefit from a more accessible entry point into the NFT universe through centralized exchanges such as Binance. »
Generally speaking, the infrastructure used to access NFTs and other Web3 services will likely become more intuitive; In any case, this is an aspect to which the Binance NFT team devotes significant resources. It seems that this trend is general across the entire crypto universe, since the user experience has already vastly improved over time.
Putting education in tune
Now let's move on to an aspect that is not technical, but remains essential to user safety: education. Before exploring the world of secure NFTs, you need to understand a lot, such as knowing all the ins and outs of portfolio management, knowing how to spot scams without hesitation and developing many other Web3-related skills. There are many facets of the decentralized blockchain ecosystem that make it fascinating, and we encourage people to explore it; but before diving into it, it is better to learn to master it. What’s better, then, than a highly secure, centralized NFT platform to upskill?
To ensure the future is secure, we need to make learning opportunities more accessible within the NFT universe. Resources such as Binance Academy and a wealth of free content from independent sources already exist, but we are still far from the amount of support available in the fungibles sector.
What does the future of NFT education look like?
Widespread learning opportunities focused on NFT technology.
Increased assimilation and participation in resources already available.
The progression of a more mature opinion on NFTs to combat the still very widespread idea according to which they are only JPEGs used to make money quickly.
Learning opportunities for businesses, developers and Web2 leaders that could improve the implementation of NFTs.
This list is far from exhaustive, but these four points point the direction for the NFT sector.
Our vision for the future of NFTs
Today, we know almost all of the characteristic “creative” use cases of NFTs: in video games, as collectibles and digital art, as virtual lands… What else what could the future hold for us? The best way to find out is to look at emerging use cases and their potential.
The entertainment, staking, ticketing and DeFi sectors are already seeing great achievements, and the concept of personal NFTs representing digital identity looks promising. Let's take a look at a small sample of what is possible now and what will be possible soon.
La NFTFi
For a while, the usefulness of NFTs was limited: you could trade them, use them in games, or leave them in a wallet, where they gathered dust waiting to be sold.
However, new financial use cases have recently emerged; NFT staking is already possible on Binance at competitive costs and interest rates, and NFT lending will soon be open to the public. The potential of NFT finance (NFTFi) is gigantic and varied, and it is an extremely interesting area that does not fit into a single box in the NFT universe.
Le staking de NFT
Let's start by defining what this activity consists of:
“NFT staking allows holders or collectors to earn additional rewards from the NFTs held in their wallet. By entrusting their NFTs to a service provider or a smart contract, the owner can receive new tokens, services, or other benefits. »
The Binance NFT Marketplace offers various services in this area.
Since December 2022, Binance has offered its Ape staking product to owners of NFTs from the very popular Bored Ape Yacht Club collection. Anyone who owns an NFT from the Bored Ape Yacht Club (BAYC) or Mutant Ape Yacht Club (MAYC) collection can stake it on Binance to earn daily ApeCoin (APE) rewards. This is a simple mechanism, but which has the merit of increasing the usefulness of these NFTs at the time of their launch.
“The principle is to add additional utility to NFTs. In this specific case, it is a DAO which implemented this functionality, but nothing prevents an external project or even an exchange from being at the origin of a program of this kind. »
The Ape staking model created by Binance deviates slightly from the original ApeDAO product and offers unique and very interesting advantages such as:
Its user-friendliness: it is possible to stake directly from a Binance account and request help from customer service whenever necessary. One click is enough to start the staking process.
Its absence of gas fees: staking or withdrawing staking of assets held in a Binance wallet is completely free.
Its flexibility: the duration of staking is not fixed, and it is not obligatory to have APEs to take part.
Its distribution of competitive rewards that increase every day.
Binance also offers NFT The Sandbox staking, and is the only third-party platform to do so. LAND NFTs can be staked on the Polygon network to receive daily rewards. The Sandbox NFT staking program offers flexible term subscriptions, and holding SAND tokens is not required for NFT LAND staking. This is again an area where the staking possibilities are proven, and which we are now making available to our ecosystem of users.
It is not very difficult to envision the potential of NFT staking, and staking tokens as collateral is a practice that could become more widespread; perhaps it would be possible to earn the right to participate in a new airdrop, benefit from a new sale or join a new service. These are just a few examples; Let’s wait and see what the future holds in this regard.
NFT loans
Crypto loans are already common enough in the industry. This system of providing crypto collateral to obtain a loan provides access to the liquidity of relatively illiquid staked assets. NFT loans are also particularly interesting and well received in the world of digital finance.
Binance NFT plans to offer NFT loans to its customers very soon. We plan to take advantage of current offerings to provide a new experience with familiar benefits, including:
An easily accessible loan obtaining experience.
Instant collateralized NFT loans to immediately provide liquidity to blue-chip NFT owners.
A service that takes advantage of Binance's overall security.
No gas fees.
Low interest rates.
The DeFi space is already experimenting with NFT lending, and we hope that by offering this product on a centralized exchange it will become even more widespread. Centralized platforms enjoy a unique posture that allows them to run a peer-to-pool model which generally lowers fees compared to the peer-to-peer model. The CEX model also comes with the benefits mentioned above regarding our NFT loans.
In most cases, Internet users' first contact with new digital asset services is on a CEX: this is why NFTFi on this type of platform will be an integral part of the future of the world of NFTs.
NFTs in the entertainment sector
It seems very likely that NFTs will continue to be the subject of new use cases in the fields of entertainment and fashion. Famous personalities are already using NFTs to connect with their fans, and these non-fungible tokens have also been associated with exclusive content like songs, branded merchandise and autographed photos, for example:
In the music industry: The “Alan Walker Origins” NFT collection consists of three highly crafted music videos from the artist’s “Origins” album.
Among luxury brands: owners of “Mystery by Franck Muller” NFTs have access to exclusive utilities such as physical watches signed Franck Muller, dials for Apple Watch, NFT watches to wear in the Metaverses and invitations to private events organized by Franck Muller in Dubai, Miami and Singapore.
In the world of sport: Cristiano Ronaldo's CR7 NFTs offer their holders exclusive utilities such as virtual meetings with the legendary footballer himself, automatic whitelisting for all future collections created by CR7, a free CR7 Mystery box, and other rewards.
These are the areas where NFTs have already established themselves well, and which will undoubtedly be the centers of additional innovation: who knows, NFTs will perhaps be used to verify the authenticity of designer accessories sold in the real world.
“Hopefully, NFTs will become more common in these circles as these tokens are no longer seen as just gimmicks. »
Billeterie NFT
NFT ticketing is another increasingly popular use case. Conventional systems are notorious for being slow, expensive and often unfair to fans: NFTs offer a digital solution for easy authentication and control to combat the secondary market of high-priced ticket resales.
This application of NFTs is not yet really known to the general public, but it is being prepared:
NFT tickets were sold on Binance for The Weeknd's After Hours Til Dawn tour in collaboration with our company, a digital and timeless option that replaces the paper ticket.
POAP (Protocol on Certificate of Attendance) NFTs were distributed to festival-goers attending Primavera Sound 2022 to enrich their experience by offering them on-site benefits and the possibility of obtaining free entries for the next edition of the event .
NFT tickets for S.S. Lazio matches have been put on sale to offer exclusive access to the Stadio Olimpico for home competitions in the 2022/2023 season in addition to discounts of all kinds.
Complete NFT ticketing solutions will inevitably emerge eventually; it will then no longer be just memories, but real tickets on the blockchain. The supposed complexity of the technology may deter some: creating a seamless user experience is paramount.
The keys to an innovative future for NFTs are obvious
The movement towards the future begins today, and considering the emerging use cases and efforts, the general development trends of the NFT universe are as follows:
Integrate infrastructure to bring together creators and services.
Design more secure applications and advance best practices to protect users.
Inform all citizens about NFTs and promote their reputation worldwide.
Develop new innovative use cases that provide concrete utility to users.
No one can predict with certainty what the next major application of NFTs will be, but we do know how to prepare the ground to accommodate it and its successors. Seeing that Binance's work on NFTs is following the roadmap above fills me with pride, but we're not the only ones making such efforts: a sprawling NFT community is working toward the same goal, and they're not alone. expects more than you.
NOTE: This is a general announcement. Products and services mentioned in this announcement may not be available in your region.
For more information
NFT Authentication: Fighting Fake NFTs and Scams
Common NFT Scams and Some Safety Tips (2022)
NFT Security: Protect Your Digital Collectibles
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