I will write about what we should ultimately aim for and how we should showcase the characteristics of NFTs.
In fact, the content I have written so far does not necessarily need to be about NFTs. It could be implemented centrally using a traditional database without any particular problem.
However, NFTs have an interesting property that allows them to transcend platform boundaries, and this can create a very strong network effect.
For example, some might use NFTs in collaborations between restaurants and IP. Imagine a restaurant where scanning a QR code changes the NFT you own. This mechanism serves as marketing for the restaurant and allows the IP side to sell digital items. Buyers can prove their participation in the event.
There might even be IPs that create games. Nowadays, games are made and promoted by paying influencers. But influencers don’t always want to do this because introducing an uninteresting game could decrease their fans’ goodwill.
Let’s think differently. Influencers could plan a game and outsource its development. They can sell NFTs for profit, which are then reflected in the game.
Are you familiar with Super Smash Bros.? It’s a fighting game by Japan’s Nintendo featuring their characters. They mainly use Nintendo characters, probably due to the difficulty of distributing profits for copyright reasons. However, if monetization points are set to NFT purchases, we might see a game like ‘Super Smash YouTubers’ where popular YouTubers battle it out. Each YouTuber profits from their character’s sales.
Cadence’s ability to create nested structures with NFTs is very useful for IP collaboration. If Mr. Beast were to sell NFTs on Flow, it would greatly increase awareness. Mr. Beast, who loves the Japanese manga NARUTO, could collaborate with NARUTO on Flow’s NFTs. He is currently developing a private chocolate brand. While YouTubers have been focusing on merchandise sales, digital items could be more profitable.
If the market is mature enough, big Japanese IPs like NARUTO might be interested. A challenge for Japanese entertainment is tapping into overseas markets, which is difficult due to the need to hold inventory globally. With NFT sales, this concern is eliminated.
If Mr. Beast collaborates, NARUTO might also join. At this scale, Flow could become a hub for all entertainment. Although there are many challenges to overcome, this is the future Flow should aim for.