Here’s How NFTs Fit in the Centralization Debate

By Grit Daily Staff Grit Daily Staff has been verified by Muck Rack's editorial team
Published on May 4, 2022

In the most basic sense, non-fungible tokens (NFTs) are often misunderstood to hold only their intrinsic value. Like other markets, they can be traded at values that vary wildly. But in a way that sets them apart from conventional commodities, NFTs benefit from blockchain technology, allowing users to retain ownership of a unique online property. Some may still be created for their own sake, but the next generation of tokens could boast significant advantages over its forerunners. 

Many NFT creators look to add value to their proposition by providing collectors with access to tangible benefits upon purchase, with additional value gained by retaining the property. Some, such as Phillip Roberts, the founder of CryptoCreatures, believe NFTs have a place in the centralization debate. Many NFTs are no longer self-subsidizing artworks but narrative devices that convey a broader message in the Web3 world.

As a key facet of blockchain technology, NFTs can be used to advocate against traditional centralized finance. Beyond the simple benefit of a narrative feature, NFTs can evoke a profound visualization of the perceived risks of hyper-centralization in the following ways:

Educating people in crypto

The rapidly increasing number of people engaging in cryptocurrency is pleasing to project leaders, but community members still have room to learn the ins and outs of the present debate.

“The best starting point is to listen to cryptocurrency podcasts and audiobooks,” Roberts explained. “If you can understand market cycles and different investment strategies, you are more likely to have real success in the space.”

That’s what many of the latest tokens are offering. They are still NFTs at their core, but they are also art-based narrative devices as exist elsewhere in online media. By differentiating themselves in the way they attempt to educate the metaverse population, they could support the use of blockchain technology and different communities within crypto. 

Making the case against centralization

Many understand why the argument for decentralized finance can be so compelling. What sets some projects apart in the space is how they look to implement that stance into tokens, making for an innovative variation on conventional NFTs.

“Consumers can better understand the pros and cons of hyper-centralization in society by engaging with NFTs and their associated media,” the founder said. “Creators have the ability to send a message to the NFT and crypto community at large. That makes it easier for users to engage with the arguments around centralization and freedom.”

Bringing positivity to the community

Critically, some see a need to instill positive energy into a community that inherently finds itself within an ongoing discourse. While, ultimately, creators are putting forward viewpoints through NFT-based narratives, tokens can use storytelling colorfully and refreshingly to grow the community. Gaining attention is essential to make a compelling argument on either side of the centralization conversation.

By using uniqueness and individuality, creators can endeavor to make the NFT space a welcoming and representative environment for users. The ultimate aim of narrative-based tokens is to connect with the audience and evoke a positive emotion that they can associate with decentralized finance. Leaders in the space are going about this objective in an array of distinct and creative ways.

Engaging with Web3-related projects has the effect of growing the community of Metaverse advocates. Individuals are altering the discussion around finance’s future by investing in blockchain assets. Many of the latest NFT launches are now centered around spreading awareness of the centralization debate.

By Grit Daily Staff Grit Daily Staff has been verified by Muck Rack's editorial team

Journalist verified by Muck Rack verified

Grit Daily News is the premier startup news hub. It is the top news source on Millennial and Gen Z startups — from fashion, tech, influencers, entrepreneurship, and funding. Based in New York, our team is global and brings with it over 400 years of combined reporting experience.

Read more

More GD News