Augmented reality is bringing NFTs into the real world, and the benefits will be long-term

Non-Fungible tokens (NFTs) have exploded in popularity in recent months. The newest crypto trend has taken off and is changing the face of the art, fashion, and gaming industries, just to name a few. But as digital and mixed realities increasingly merge, what’s next for the crypto trend? And who is going to reap the benefits?

By now, many of us have seen the eye-watering sums of money spent on NFTs, such as the first ever tweet, which sold for just under $3 million, or digital artist Beeple’s collection Everydays - the first 5000 days, which sold for $69 million at Christie’s in March - the third-most expensive piece of art created by a living artist, behind only Jeff Koons and David Hockney.

NFT technology is becoming more popular every day, highlighted by the fact that various celebrities are jumping on the bandwagon while they still can. Seven-time Super Bowl champion and NFL legend Tom Brady announced recently that he is launching an NFT company by the name of Autograph, and he is just the latest in a long line of household names to get involved.

NFTs are targeted towards those with a ‘collector’s mentality’. Of course anyone can see Beeple’s art online, but only one person can have the original. This is similar to the lucrative sports trading card industry, which saw records broken in April when a 1979 rookie Diego Maradona card was sold for $555,960 - the most expensive football trading card to date.

As NFTs like these continue to gain mainstream traction, many are wondering how augmented reality (AR) can help this crypto craze evolve. 

AR NFTs include augmented reality visual cues that allow the owner to place digital items in their environment or on their own body, whereas 3D NFTs can be visualised within a fully digitalised 3D world, using AR or similar technology. AR NFTs allow for users to interact with their very own unique 3D fashion items, artwork or even real estate in an augmented reality setting.

The rising popularity in AR NFTs will hugely benefit artists and creators, creating new revenue streams for them that were not previously possible. As NFTs are software and not analogue items, it means the creator can receive a royalty every time an NFT is resold. 

One example of this comes from singer Shawn Mendes, who launched a line of NFTs in the form of digital versions of some of his most famous accessories, such as his gold ring, earrings, the vest he wore on stage in Mexico City, and his iconic Fender guitar. These items became accessible to fans to use on their digital avatars, and allowed Mendes to engage directly with his fans, reducing the need for any intermediaries.

The gaming industry is a space in which AR NFTs have already begun to boom. Former CEO of Machine Zone Gabe Leydon, who pioneered the ‘in-app purchases’ model of mobile gaming, making billions of dollars in the process, has said that NFTs will be the next thing to change the gaming industry.

He said: “I think NFTs are going to be the first real breakaway crypto that are not necessarily tied to the success of Bitcoin.

“In a few years, if Bitcoin totally failed and went to zero, I don’t think it would have any effect on it. NFTs are going to absolutely explode.

“This is going to be really, really big, in my opinion. It’s going to end up being bigger than crypto just because it’s going to affect all software.”

A famous example of AR gaming is Pokemon Go. If they were to introduce NFT technology into the game, users could hunt for truly unique, one of a kind pokemon and show them off to their friends. 

Some games have already begun doing this. Metaverseme, an AR game powered by Enjin software, allows users to take selfies and generate hyper realistic in-game avatars. They can also purchase fashion items as NFTs that they can interact with and get their avatars to wear. Users can then show off their avatars’ unique items by sharing videos on social media.

It’s not just gaming that will benefit from AR NFTs. The art world has already seen creators push the boundaries of what we thought was possible just a few years ago. As artists look to make their mark in the NFT space and capitalise on the benefits, using augmented reality technology in their NFT creations is the next step. Artists have already started experimenting with the technology, often using world effects.

With a world effect, users can interact with pieces of digital art by placing them in their own environment, whether that’s their living room or even a fully digital art gallery, all through the power of AR. Artists are also using AR to create face filter NFTs. Melbourne-based artist Marc-O-Matic is someone who creates artwork which combines art, 3D animation, augmented reality and crypto technology, and sells his art as NFTs.

He said: “Augmented Reality allows you to create an intersection between art and digital.

“I fuse traditional skills with AR to present art in different engaging ways by repurposing illustrative work and augmenting it to become an experiential and engaging way to view art.”

The digital world has steadily been bridging the gap with reality in recent years, and it is certain that augmented reality technology has arrived and is here to stay. Indeed, the same can be said for NFTs. As these two industries continue to grow, you can also expect to see them continue to converge, making AR NFTs a regular fixture of the world as we see it in the near future.