While non-fungible tokens (NFTs) have secured their place within the crypto space, several barriers continue to impede broader adoption, according to Web3 professionals. Key issues include the need for new narratives, the tarnished reputation of the broader Web3 space, and the complex user experience associated with NFTs.
Lack of Innovation and Fresh Narratives
Dave Catudal, co-founder of the social monetization platform Lyvely, identifies a lack of innovation and fresh narratives as major obstacles. “The main issue with reluctant adopters is the lack of innovation and fresh narrative in the space,” Catudal explained. He emphasized that the market does not suffer from a technological deficit but rather a public relations problem. “Bloated hype, scams, and the threat of bad actors almost snuffed out the industry the first time, and developers will need to reinvent NFTs for their original worth in creating trackable and tradeable digital assets.”
Tyler Adams, CEO and co-founder of Web3 company COZ, echoed this sentiment, suggesting that the negative reputation of the broader Web3 space spills over into the NFT sector. “The main barrier is the reputation of everything that involves the Web3 world. Unfortunately, the actions of a few end up affecting the image of the community as a whole,” Adams added.
Complicated and Intimidating for Non-Technical Users
James Toledano, COO at Web3 wallet Savl, pointed out the complicated nature of creating, buying, and managing NFTs as a significant barrier. “It is crucial that we simplify these processes,” Toledano emphasized. The complex and often intimidating procedures can deter non-technical users from engaging with NFTs.
Gabriele Giancola, co-founder and CEO of Qiibee, which assists businesses in tokenizing loyalty programs, agrees that NFTs bring technical complexities and hype-driven perceptions. Giancola believes the industry needs to highlight the tangible benefits of NFTs by focusing on their practical applications.
Reclaiming the Term NFT
Dr. Alun Evans, co-founder of the Polkadot parachain LAOS Network, emphasized the need to “reclaim the term NFT.” He noted that the term is primarily associated with digital collectibles, overshadowing its broader applications. “While that is one use case, there are many more, from tradable items in games and virtual worlds to tokenization of real-world assets, to ticketing, certification, and more,” Evans explained.
Justin Banon, founder of the decentralized infrastructure network Fermion Protocol, believes the industry is already making strides in overcoming barriers like demand, user experience, and market understanding. Banon suggested that the demand problem will resolve with the next bull cycle, while the user experience has significantly improved. He anticipates that as Web3 technology continues to mainstream, market comprehension of NFTs will naturally increase.
The insights from these Web3 professionals underscore the multifaceted challenges facing NFT adoption. Addressing issues such as innovation stagnation, public relations, user experience, and market education will be crucial for NFTs to gain broader acceptance and usage. By overcoming these barriers, the NFT space can better demonstrate its practical value and potential to a wider audience.
