It goes to show you have little understanding of the internet if you think the NFT frenzy will be a temporary trend.
A new mode of digital commoditization continues to penetrate all areas. From the eight-bit Nyan Cat animation to a screenshot of Jack Dorsey’s original tweet, people continue to pay high amounts to secure NFT’s as ‘authentic’ proof of ownership.
We have yet to figure out exactly why people obsess over these digital bragging rights.
As a concept, the NFTs are strange, but they perfectly represent the fast-paced and neurotic nature of the world wide web. Take my word for it, they’re not going anywhere anytime soon.
The emergence of NFTs have been expected by market experts in art and cryptocurrency before crazy transactions made headlines. However, it seems that NFTs will expand beyond cryptocurrency native marketplaces into conventional e-commerce sooner than expected, with eBay the first major auction site to join the party.
How does e-bay plans to roll it out?
The company has talked about letting go of its once-stanch policy, according to which all listings must include a physical item or service for sale, because it wants to get into the lucrative business of cryptocurrencies.
A senior EBay executive has been planning a strategic move to increase the company’s pool of buyers and sellers for months. This week, Sweetnam unveiled a section of the platform dedicated to digital assets.
eBay invested heavily in infrastructure to validate physical collectibles, such as trading cards and artwork. Now, with blockchain technology, the company believes it can rival native NFT marketplaces in terms of success.
The exact presentation of eBay’s new NFT strata remains to be seen, but given the recent spike in Ethereum’s value – a popular cryptocurrency – to record highs of $4,100 USD, you can bet this section will be prominently featured.
To make purchases, users will need to purchase digital tokens on eBay. Only approved sellers will be able to list NFTs on the platform.
What a massive e-commerce explosion means.
You can bet Amazon will certainly want to take a share out of the six figure transactions with virtually no legwork involved now that the world’s largest auction site has jumped on board.
If eBay succeeds in its transition to NFTs and cryptocurrency in general, it will offer a whole new level of profits for ecommerce companies. Whether or not other big players in ecommerce take notice will depend on whether consumer demand is large enough and worthy of taking on.
Yet, one important point we have yet to address and one that is frequently missed by cryptocurrency advocates is just how damaging digital transactions can be to our climate targets.
Although blockchain transactions are frequently used to conduct sales on a massive scale almost instantly, without requiring a third party, these complex processes are incredibly energy intensive – some estimates show blockchain energy deficits equaling entire countries annually.
In an environment where corporate social responsibility is in demand, and where marketing campaigns are scrutinized for evidence of “greenwashing,” it makes no sense to opt for profits over morality. The PR risk of leaping at this moment is too high.
We haven’t been able to substantiate these claims yet, in light of the current climate, so we’re not quite sure how soon the technology will be powered by renewable energy.
It’s now essential to watch how eBay does in its new venture, and depending on which side of the coin you are on, it is either worrying or exciting.