The merging of our virtual and real worlds is not the stuff of science fiction anymore. Here at Robotics AI Labs we’re certainly at the forefront of that revolution. They’re seriously experimenting with ways to make NFTs corporeal robots. This new method of fractional property ownership has far-reaching effects on digital asset ownership, investment democratization and the future of decentralized finance (DeFi). Contact Robotics AI Labs disrupts the way people own and interact with digital assets by merging human-like AI with blockchain technology. This creative application opens the doors to a new age of technological integration into the investment process.

The Genesis of Machine NFTs

The idea behind Machine NFTs is even further proof into the amazing ways blockchain technology can be utilized to create real-world value. Hong Kong-based Hanson Robotics, known for the human-like Sophia robot, launched the initiative by releasing a series of NFT digital artworks. In fact, these artworks were generated by Sophia, a human-like robot driven by artificial intelligence (AI). This initiative highlighted the potential for machines to create and own digital assets, challenging traditional notions of ownership and creativity.

NFTs have the potential to really change the world for the better. By stripping away the separation between the digital and physical worlds, they provide people with an ownership of their environment. In a future where machines are interconnected and communicate within an "economy of things" (EoT), NFTs can benefit individuals and improve wider society. This synergy further orchestrates innovative collaboration between humans and machines, driving creativity and economic development.

What’s more, NFTs can be a tool in mitigating the effects of automation on jobs around the world. According to other estimates, as much as 36 percent of the entire U.S. workforce may be unemployed due to automation by 2030. NFTs have the potential to be important catalysts in redistributing wealth and creating entirely new economic opportunities. By tokenizing assets and enabling fractional ownership, NFTs can empower individuals to participate in the benefits of automation, mitigating potential negative impacts.

Web3, Ownership, and Streamlined Processes

The promise of Web 3.0 is giving individual ownership rights back to the people. This guiding principle seeks to uplift those who have been disproportionately impacted by the negative consequences of technological progress. And NFTs are central to making this ideal a reality. For one, they provide a trusted, verifiable public ledger of ownership and transfer. Because this change to decentralized ownership model puts control into the hands of creators and users, it creates a more democratic and equitable digital economy.

Moreover, distributed ledger technology (DLT) has the potential to revolutionize capital markets by streamlining and automating manual and time-consuming processes. With the help of blockchain technology, financial institutions can minimize operational expenses, boost efficiency levels, and enhance transparency. Through NFTs, anything and everything can be tokenized. This two-step process deepens investments’ accessibility to a more diverse range of investors and unlocks new avenues for expanded capital formation.

Accessibility and Direct Ownership

Tokenization expands retail investors’ access to alternative investments. This is an opinion supported by 55% of high-net-worth (HNW) investors who are seeking improved opportunities in this area. That’s because traditional alternative investments typically require significant minimum investment thresholds. Their convoluted regulatory frameworks are only available to institutional investors and the ultra-rich. NFTs are capable of fractionalizing these assets, enabling investors with smaller pockets to get involved and diversify their investment portfolios.

Investors like having direct access to individual assets. Unlike CalPERS, they want to own these assets directly rather than through an investment fund. Around a third of institutional investors strongly favour direct access, underscoring the need for more control and transparency. This consumer preference can be better served through NFTs, which ensure verifiable ownership and remove the need for third-party operators. A robust 63% of institutional investors are receptive to direct real estate investments that have reduced minimums. Even in the absence of voting rights, this is indicative of a strong consumer desire for fractional ownership via NFTs.

Specifically, 45% of high-net-worth (HNW) investors are excited to pay higher fees for direct access to real estate equity. A plurality (44% of them) are even prepared to pay up to another 0-50 basis points. This willingness underscores a great need for direct ownership, which is often invaluable. NFTs can change the traditional investment model by offering investors more control, transparency, and accessibility.

Use Cases: Gaming, Metaverse, and Beyond

NFT-Based Gaming

NFTs are poised to transform the virtual gaming industry by introducing a new paradigm for gamers to own and trade digital assets. Current gaming models usually limit player-owned assets, making it so players cannot buy, sell, or trade in-game items when they want to. NFTs address this issue by providing real, verifiable ownership of digital assets. Gamers are increasingly able to purchase, sell, and trade rare digital goods on open, third-party marketplaces.

NFT games, such as CryptoKitties, Blockchain Cuties and Axie Infinity are the most well-known examples of NFTs. Each one provides a unique glimpse into how blockchain technology can enhance the gaming experience. Axie Infinity became a household name worldwide due to the massively popular play-to-earn (P2E) model. Players have the potential to earn real, tradable cryptocurrencies and NFTs driving them to play, collect and compete. This innovative new model is opening up economic opportunities for gamers from all parts of the world. In developing countries, P2E games are becoming an important new income stream.

Virtual Real Estate

Demand for virtual real estate in the metaverse has exploded. Developers snapping up entire parcels of land for millions of dollars! In November 2021, a piece of virtual land in Decentraland sold for an eye-popping $2.4 million. This sale is just an indication of the rising perceived value of virtual property. Each piece of land is an NFT, providing provable ownership and scarcity.

Possibilities abound on virtual real estate, with new opportunities for developers, investors and creators. It’s already being used by many brands to create virtual storefronts, host events, design unique experiences and more. The metaverse may be new and complex, but opportunity abounds. As it matures, virtual real estate will increasingly become a highly lucrative asset, stimulating creativity and driving economic progress across the metaverse.

Play-to-Earn Gaming

Play-to-earn (P2E) games are changing the game for blockchain gaming. They let players unlock these rewards as specific cryptocurrencies or NFTs. This new model rewards attendance and engagement, making for a more enjoyable and captivating gaming experience. Axie Infinity and Near Lands are striking examples of P2E games that have exploded in popularity.

P2E games are primed to change the gaming industry. They will change the game from purely playing for fun to a new model where players can make a sustainable live doing what they enjoy. That’s what makes this paradigm shift to the future of work so incredibly disruptive. It also brings some critically important caveats, particularly as automation takes a deeper hold and the gig economy expands.

Metaverse Entertainment

The potential for the metaverse is creating these enriching, immersive experiences—experiences where you can create art, experience culture, hang out with friends, play games. Virtual concerts are taking off right now! That was before 2020, when almost 27 million of us tuned into music superstar Travis Scott’s epic virtual concert on Fortnite. As with millions of other digitally mediated gatherings before them, these virtual events show the metaverse’s capacity to foster new wave entertainment and connective social experience.

NFTs have the potential to supercharge these experiences. As predefined assets, they provide novel and collectible digital goods such as concert tickets, merchandise, and NFT art. These NFTs can be bought, sold, and traded on open marketplaces, creating new economic opportunities for artists, creators, and fans. The development of the metaverse is moving fast. NFTs will continue to be an important part of developing its economy and culture.

The Promise and Peril of Decentralization

The pace of growth and adoption of NFTs has been simply astounding. In just four years, the global market value increased from under $1 billion in 2019 to a booming $20.22 billion in 2023. Forecasts across the board project huge growth in the coming years. By 2031, the AI market is predicted to skyrocket to $398.77 billion, reaching an astounding compound annual growth rate of 43.36%. Such fast growth only highlights the game changing capabilities NFTs have in industries far and wide.

NFTs provide many benefits, such as greater accessibility, transparency, and security. Blockchain technology gives NFTs the ability to function without a central trusted third party. This breakthrough innovation drastically reduces the chances of hacks, censorship, and various security threats. This decentralization empowers creators and users, making for a more democratic and equitable digital ecosystem.

Because the NFT market is largely unregulated, this opens it up to serious risks. These dangers encompass market manipulation, fraud, and money laundering. We need to address these risks through common-sense regulation. Without robust industry self-regulation, no NFT market will be sustainable over the long term.

  • Pros of NFTs:
    • Increased accessibility.
    • Enhanced transparency.
    • Improved security.
    • Elimination of intermediaries.
  • Cons of NFTs:
    • Potential for market manipulation.
    • Risk of fraud.
    • Concerns about money laundering.
    • Lack of regulatory oversight.

Robotics AI Labs's exploration into transforming NFTs into functional robots exemplifies the innovative spirit driving the convergence of the digital and physical worlds. Stakeholders can realize the promise of NFTs if they appreciate their potential, while recognizing and mitigating related risks. It’s through this approach that we’ll achieve a more equitable, accessible, and innovative future.