Can Blockchain NFTs Prevent The Counterfeiting of Collectibles?
The counterfeiting of collectible items has been rising in recent times.
It may have to do with an increased interest by collectors. There is also the fact that the collectibles market is an alternative investment component. New investors consider collectibles to be an alternative investment that is a suitable addition to any portfolio.
Just How Big is the Collectibles Market?
Recent statistics have placed the value of the collectibles at $412 Billion in 2020. We expect this figure to rise to $628 Billion worldwide by 2031. With the rise in different sporting and gaming events, it could be much more.
It presents two kinds of challenges. The first is how best to prevent collectibles from being counterfeited. The second is how to authenticate such collectibles besides physical examination.
Counterfeiters of collectibles such as gaming cards don’t care about the damage they cause to buyers. One emotion mutes the losses, the emotional trauma, and other effects of their illegal activities that investors face: greed.
It can be a problem when an investor or collector has put in so much time, effort, and financial resources to buy several collectibles only to discover that they are all fake.
It also destroys the element of trust that exists in the global collectible marketplaces.
All hope is not lost, however. It is where blockchain technology and Non-Fungible Tokens (NFTs) come to the rescue!
How Blockchain Technology And NFTs Help
NFTs on blockchains can help prevent the counterfeiting of collectibles in many ways. The first of these is the identification of collectibles by their unique NFT. After the creation of a collectible, its NFT can be minted and onboarded to a blockchain.
It allows for easy verification of authenticity without the physical movement of the collectible itself. It also means logistics and verification costs will crash significantly.
There is yet another angle to the role of Blockchain technology and NFTs in this market. Collectibles can become strictly digital. It saves the cost of creation, verification, logistics, and so on. When collectors trade collectibles, it is the NFTs that change hands securely and permissionless on the blockchain.
It is already happening in several instances, such as in OpenSea, Rarible, Cryptopunks, NBA Top Shot, and so on. They come with some drawbacks.
When first-generation NFT marketplaces came on the scene, they excited us all. We all KNEW that something new is here to bring back the excitement and interaction crypto kitties ignited within the cryptocurrency space.
Not everything went as planned. A lot of the experiences have become static. Lack of authentic NFTs, too much geek-speak, and little engagement have all affected the NFT marketplaces. Then there is the big problem where gamification of NFTs hasn’t occurred on the scale most of us thought it would.
The New Kids on the Block have changed what the other marketplaces couldn’t. Enter the new guys who have created new paradigms within the NFT space.
How New NFT Marketplaces Change Things
New NFT marketplaces come with a different perspective to the NFT space. The teams behind these new marketplaces have studied what’s not working and have created mechanisms to solve the concerns.
Starly, for instance, has created in-house engagement processes to keep both collectors and artists interacting with each other. From start to finish, Starly’s processes create a social environment where there is continuous interaction.
Others like Heroes TD focuses on creating a totally gamified experience for users using the play-to-earn model that is quite popular within NFT gaming circles.
Metaverse-focused TCG World aims to keep everyone within its NFT metaverse as the world shifts towards metaverses and the wonderful experiences that users can have there. On the whole, these new NFT marketplaces are creating an edge for themselves, with each one having a different focus.
Zero-fee NFT minting is all the rage now among these new NFT platforms. High gas fees discouraged a lot of creators from minting their NFTs. However, the newer platforms have solved this issue and offer fee-free minting to creators.
Selling NFTs Can be Problematic
It’s not enough to mint these NFTs. They have to be sold for creators to derive the satisfaction of compensation. It is also why the best-selling artists are either the ones who have been on the art scene and are recognizable or those who have a large social media following. In most cases, both factors are decisive in determining who sells NFTs faster.
For instance, Starly has a minimal social media following requirement after other verification processes that creators must meet before onboarding onto the platform occurs.
Then there is the feature that allows creators to sell their NFTs as collections. Thus, creating a foundational basis for digital collectibles.
And as the fans open the virtual collectibles, they are tracked with unique features and a serial number. It is besides the fact that they are NFTs.
It creates a zero chance of counterfeiting collectibles.
Gamification of NFTs is Now a Reality
New NFT platforms now allow NFT collectibles to be gamified. Apart from enhancing the user experience, it also creates a new paradigm where video game creators with a social media following sell their collectibles virtually.
Everything occurs within a blockchain-based environment, so security is top-notch. Starly offers this gamified experience for its creators. It gives the creators a chance to take their collectibles to the next level.
Older NFT marketplaces would have to alter their codebase from the ground up to achieve this.
Gamification also creates a new kind of interaction within the NFT marketplaces. If anyone can play a video game and still have collectibles by the side as a plus, interactivity will surpass buying the physical collectible after playing the game.
It is quite possible to see Pokemon-like games and their corresponding NFT collectibles within the new NFT marketplaces.
They eliminate the intellectual property problems that trail the older marketplaces because gaming fans are specific to their games.
Players know when they are playing a counterfeit version of their game. The economic model of counterfeiting falls flat on its face when confronted with such blockchain-driven models. So, as a market-driven alternative, new NFT marketplaces continue to drive innovation to the next level.
We are going to see further innovation within these marketplaces. The reason for this has more to do with the open-ended structure that these marketplaces operate.
The older guys come to the table with a fixed mindset. The new guys are flexible and willing to experiment.
Who knows? The next big thing after Satoshi might just come from there!
