• According to Binance, NFTs are a technology in search of new applications

  • Helen Hai, Binance’s Head of NFT & Fan Tokens, told us at the Paris Blockchain Week Summit (PBWS) that NFTs are a “technology still in the application stage of development.” Art and music are presently the two key drivers of the NFT industry, but the world’s largest exchange by market capitalization feels there is much more to come.

    Although interest in NFTs has recently waned, Binance feels that the space is just getting started. This year has already seen corporations seek trademarks connected to NFTs, governments consider issuing their own NFTs, and live NFT events around the world. As Hai says, the current key use cases under emphasis include art and music. For artists, NFTs provide an opportunity for undiscovered talent to reach a completely new market without the requirement for galleries or art curators to approve their work. They provide musicians with financial independence from record labels and publishing companies, which keep the rights to the majority of their work in exchange for a moment in the spotlight.

    Other NFT-related applications

    Hai saw a fascinating application for NFTs in the real estate industry, not in the metaverse. When it comes to property and conveyancing, NFTs provide better “efficiency in terms of timing and accuracy,” which offers “a lot of value.” One technique to use NFTs with property is to convert every building into an NFT. If the property network ran on the blockchain, buying and selling houses, apartments, and land could be done in minutes rather than months. Furthermore, ownership authentication will be completely transparent as well as easily regulated. However, Hai sees a hurdle with achieving adoption in the property area in the form of a common crypto issue: regulation and traditional adoption. The major fear, according to Hai, is “what might happen to the traditional industry” if NFTs take over the property market.

    Traditional industries’ refusal to accept technology is not a novel concept. This is especially true in industries with a low proportion of youthful talent in decision-making positions. Only 12% of partners in UK law firms are under the age of 35. The desire to adopt technology is not the sole impediment. Regulation is one of the primary subjects of 2022, with multiple presentations on the subject held at PBWS last week. However, Hai feels that greater communication, rather than legislation, is the key to progress in the NFT and blockchain worlds. According to her,

    “Regulation is a one-way thing and it’s not what we need. What we need is better communication which is a 2-way thing. You set up a rule that you don’t understand and you start to regulate. If you don’t communicate that will never work.”

    The Issue of Mass Adoption

    Hai admits that the entrance to NFTs is still a barrier to mainstream adoption. Many people still don’t understand how to enter the crypto world, and they are concerned about the security of various platforms. Given the abundance of options, Hai observes that it is difficult for people new with cryptocurrency to know who to trust. As a result, she claims that Binance places a high value on education. They intend to assist people in making informed decisions on what should be “maintained and what should be deleted, not us.” “Our fundamental principle at Binance is how we can put the users first,” explains Hai. There are numerous opportunities to invest in the blockchain field; her concern is that people would become disillusioned by investing in enterprises that will fail within a few years. “Technology works for people,” Hai says, and “the human race should endeavor to better the way we govern.”

    The Issue of Mass Adoption

    Hai admits that the entrance to NFTs is still a barrier to mainstream adoption. Many people still don’t understand how to enter the crypto world, and they are concerned about the security of various platforms. Given the abundance of options, Hai observes that it is difficult for people new with cryptocurrency to know who to trust. As a result, she claims that Binance places a high value on education. They intend to assist people in making informed decisions on what should be “maintained and what should be deleted, not us.” “Our fundamental principle at Binance is how we can put the users first,” explains Hai. There are numerous opportunities to invest in the blockchain field; her concern is that people would become disillusioned by investing in enterprises that will fail within a few years. “Technology works for people,” Hai says, and “the human race should endeavor to better the way we govern.”

    Is it possible for NFTs to save the world?

    NFTs have seen some wonderful use cases in recent years, but the technology has the potential to be applied to many new facets of human life. Charitable initiatives are one way for NFTs to accomplish this. Hai also oversees Binance Charity, the company’s charitable arm, which donates 100 percent of all earnings to the ultimate beneficiary with no processing fees. Binance Charity has established a number of charitable projects that make use of NFTs, such as Tree Millions, which intends to grow 10 million trees using NFTs.

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