According to an insight provided by Douglas, Non-fungible token marketplaces are evolving steadily lately. This can be attributed to the increasing availability of digital art across the globe.
The use of cryptocurrencies as a medium of exchange for digital arts played a vital role in booming the NFT ecosystem. In the report by Douglas, the revenues realized by market players helped expand the industry. Grants from Sequoia Capital and Solana Ventures, among other substantial investments to Paradigm, contributed to the development of its NFT marketplace.
Paradigm intends to expand its digital goods and services with these funds.
A significant portion of NFT transactions accredits to gaming and digital arts. Users couldn’t transfer cryptocurrencies obtained from in-app free-to-play games to other platforms until recently. Thanks to Non-fungible tokens, owners can now control the in-game assets they purchase.
While NFTs offer alluring perks to holders, they expose users to certain risks. For now, there is no existing legal structure or framework for the NFT market. Hence, ownership is at stake, given the absence of legal copyright verifications.
Because of this, copycats can recreate other people’s work under different identities. It could be music, pictures, or videos. These duplicates are then shared online without the owners’ consent.
However, this defeats the intended purpose of creating the NFT ecosystem – providing artists a safe space to share their works without fear of being conned and enjoying the returns on their creations.
Author: Ifeanyi Egede
