NFT's are most famous for their association with the Art World; however, advocates of smart contract technology have painted a rich and colourful future for its application to most asset classes, and even more besides.
In the years to come, predictions see Gen-Z’s and Alpha’s moving increasingly to digital and virtual assets. For Trustees it is a little daunting to think that one day we could be looking after classes of assets which are not even imagined today. How does one manage virtual real estate in a game world, or insure an augmented reality diamond necklace?
We may console ourselves that these worries are far in the future, but change is now. Items not traditionally considered as assets, such as tweets and memes, are fast making their way into the portfolios of an emerging generation of digitally native investors. This was not the case even a few years ago.
In addition, blockchain ventures such as Avalanche (https://www.avalabs.org/), which aims to ‘Digitise All the Worlds Assets’, indicate that the race to transform proof of ownership of traditional assets is already very much on.
In the future, Trustees will need to be as adept in dealing with tokens and smart contracts as with trusty old contracts, titles, deeds and bills of sale. Aside from these day-to-day practicalities, there is certain to be many other challenges requiring innovative tools and changes to internal processes and policies. Long term, Trustees will need to be flexible, proactive and embracing of change to meet the requirements of a digital asset base.
Independent developers, artists and entrepreneurs now have access to a vast, burgeoning market for a dynamic range of digital assets — as the sale of everything from tweets and essays to artwork and video clips demonstrates, there’s no limit to the creative and commercial applications of NFTs. As the markets expand, we’ll see the creation and sale of innovative assets that we can’t even imagine today.
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