The sixth largest cryptocurrency's entry into NFTs was always going to be big news, but Ripple brings a whole host of advantages that will massively disrupt the current NFT landscape.
No smart contracts
Smart contracts are synonymous with NFTs but they aren't perfect. They’re slow, prone to congestion and vulnerable to exploits. XLS-20 is the standard for XRP NFTs. It’s lightning-fast, incredibly cheap (minting costs fractions of pennies) and super secure. A recent survey conducted by Ripple highlighted ease of use and access as key barriers to NFT adoption: XLS-20 solves both of these. We are early. What seems like the NFT standard today could quickly be replaced.
A big creator fund
XRP NFTs are backed by a gigantic $250 million creator fund. It’s designed to encourage innovation and bring creators into the NFT space. Everyone from filmmakers to musicians and fitness instructors is encouraged to apply. Few would bet against this fund growing much, much bigger. Crucially (and proof of Ripple’s commitment to mainstream adoption), people can apply with no technical knowledge.
Focus on real-world assets
In a recent interview, David Schwartz (chief technology officer for Ripple Labs) suggested that XRP NFTs would focus on links to physical assets like real estate. An article on Ripple Lab’s website talks about art as an “early use case” for NFTs, but only a small part of their potential. As Schwartz says: “anything that you can own all or some of that is unique, that can be represented by an NFT.” Ripple will create a tangible link between physical-world and digital ownership, accelerating mass adoption.
The debate over royalties has left a sour taste in many a creator’s mouth. XLS-20 facilitates built-in, fully customizable royalty structures that ensure continued revenue for creators. This functionality will also be important for managing rights associated with real-world assets. The current space’s movement away from royalties is a clear opportunity for XRP.
Backed by big financial institutions
XRP is trusted by some of the biggest financial entities in the world. This is one of the blockchain’s unique selling points and it gives investors confidence. It also opens up a range of possibilities for NFTs in the financial sector where XRP is already integrated. Real estate, digital financial assets and NGO implementation are much more likely on XRP than other, less trusted blockchains.
Thus, XRP's NFTs may not be typified by pfp projects, but they have the potential to make a major impact on web3 and the world.