- NFTs have been on a massive downward trend in the second half of 2022.
- Despite that, Cardano founder Charles Hoskinson believes NFTs have huge potential.
- He explained how Cardano would capitalize on the potential of NFTs.
Just as most are abandoning ship, Cardano is going all in on NFTs. Despite NFT floor prices at record lows, Charles Hoskinson, the founder of Cardano (ADA), believes there is great potential in the space. Cardano’s founder even said that NFTs could be bigger than crypto tokens.
In a Monday talk on Twitter Spaces, Hoskinson discussed his plans for Cardano’s ecosystem. The focus will be on the many potential use cases for NFTs.
According to Hoskinson, NFTs are useful for representing all assets that are beyond standardization. “So, for example, a deed of land, mineral rights, water rights, any notion of property rights,” Hoskinson said.
In the gaming industry, NFTs can represent a player’s character and progress within a game, as well as any special powers or rewards they may have earned. Hoskinson also mentioned the potential for using NFTs to represent experiences, achievements, and credentials, such as diplomas.
“Obviously, if you went to medical school and graduated, that’s specific to you. It’s not fungible – it’s specific,” he added. “So it’s actually a larger space than the fungible world,” Hoskinson said.
Cardano’s Plans for NFTs
Hoskinson went on to explain how Cardano aims to capitalize on the space. He said he wants to be involved personally in the NFT space to “see how things evolve.”
“What I want to do is just get involved with the high-level, you know, metaverse, GameFi, and something related to collectibles and then watch how those things evolve.”
He also said that he is not worried about making money from NFTs at this point.
“And then I’ll worry about things like governance, interoperability, and these types of things and sort of let the commercial people figure out different ways to make money,” he added.
He also noted NFTs could become assets that generate revenue streams. The team has already discussed how NFTs could represent intellectual property.
“A lot of what is at the end of the rainbow is going to be complex intellectual property negotiations—license deals. Like, we’ve had some discussions about how you represent a patent portfolio as an NFT. How you can sell the rights to the portfolio and then how that can turn into interest-earning future profits on that,” Hoskinson explained.
Charles Hoskinson founded Cardano (ADA) after he left the Ethereum project. His aim was for Cardano to be a next-generation blockchain platform with improved security and scalability.
Cardano also emphasizes a strong focus on research and development, with a team of academic and industry experts working full-time on the project.
On the Flipside
- NFTs have not been doing well, with transactions dropping to new lows. In August, NFT marketplace OpenSea processed just $5 million in transactions. That is approximately 99% lower than its record high in May 2022.
Why You Should Care
Hoskinson, Cardano founder and Ethereum co-founder, is an influential voice in crypto. Cardano is the ninth biggest cryptocurrency by market cap.