"Royalty-Embedded Blockchains: A Game Changer for the NFT Market and its Impact on Artists and Investors"

Systemic Changes in the Cryptocurrency Market: The Future of NFTs and What it Means for Artists and Investors

Byline: Expert Financial Analyst

In the riveting universe of blockchain technology and NonFungible Tokens (NFTs), the focus this year is turning toward royalty-embedded blockchains. According to leaders in the Web3 space, such blockchains could be a game changer for creators and investors alike.

Among the significant issues that plagued the NFT scene in 2023, creators losing out on royalties ranked high. As marketplaces toyed with the optional royalties model, creators missed out on a potential windfall from their NFT collections. Data from blockchain analytics firm Nansen revealed that royalties on Ethereum-based NFTs hit a two-year low on July 16. With this backdrop, the progression toward blockchains with built-in royalty enforcement tools becomes profoundly relevant.

In June 2023, Enjin, an NFT-focused blockchain platform, took an innovative leap by releasing a blockchain mainnet with royalty enforcement embedded in its foundational code. Likewise, the RARI Foundation moved to address this issue, unveiling a testnet for an Ethereum Virtual Machine (EVM)-compatible chain with royalties embedded into its node.

Jana Bertram, Head of Strategy at the RARI Foundation, advises that incorporating royalties within the blockchain presents the “highest-level guarantee” that a creator’s royalties will be respected. She outlines the permanence of node-level royalties in contrast to the app-level enforcement, which can be more precarious.

Bertram advocates this transformation as a sustainable model for a Web3 creator economy. She contends that creators may secure a revenue stream each time their NFTs are traded. Bertrams argument highlights the need for a robust system that guarantees enduring value for creators and establishes new business models and sustainability.

Nadaine Tongco-Edades, Vice President of Finance at Atlas Development, echoes these thoughts. She suggests that such a change can induce a resurgence of NFTs. If royalties prove to be a reliable revenue stream, new business models within the NFT space could substantially sustain various NFT projects experimenting with the technology.

In essence, the development of royalty-embedded blockchains could revolutionize the landscape of the NFT market, making it more equitable, sustainable and potentially lucrative for artists. Investors, on the other hand, may find an ecosystem where their investments are more secure and potentially more rewarding.

The recent developments also highlight the potential for market growth and innovation within the space, leading to diverse investment opportunities. If NFT platforms continue to incorporate royalties at the node level, the entire cryptocurrency market could see significant changes with investments shifting toward these more artist-friendly platforms.

As blockchain technology evolves to become more creator-focused and sustainable, artists, investors, and the broader audience will likely witness a new era in NFT commerce. As such, market participants will need to understand these changes, appreciate their implications, and adapt investment strategies accordingly. Only time will document how these strides shape the emerging creative NFT landscape, whether theyll invite more artists into the space or foster increased investor confidence and participation.