In January 2022 it became clear that the stablecoin Diem and the Diem association would fail. But since the company behind Diem has a strong view on the Metaverse it comes to no surprise that Marc Zuckerberg announced that Instagram is going to adopt NFTs.
Why is this so bullish? And which blockchain will be adopted by Meta?
NFTs are about to become a new standard
Ownership of data is a complex topic because it can be easily copied. Despite the fact that critics often claim that right-click saving entitles them the same way to own a picture or any other digital item, the ownership of a non-fungible token might be the solution to a problem that exists only in the virtual world.
Who owns digital land plots in the Metaverse? And who owns rare items in MMOs? Attributing ownership through NFTs is not only creating a new market for digital goods but also offering opportunities for users to own the content that they love. Up until this day most contracts between service and software providers and their customers handle things differently. The content is usually owned by the company that is offering the game or any other digital item.
Instagram is adopting NFTs
It comes to no surprise that a platform that basically consists of pictures that are taken by its users is looking into NFTs. It remains open if users will have the option to own and trade all of the pictures but they will be able to mint their own tokens. NFTs will play an important role in digital collectibles on Instagram in the near future.
That being said, it still remains unknown when the feature will be shipped. What also remains in the dark is the blockchain that will become the home of Instagram NFTs. One possibility is that customers will have to use Novi wallet which was originally meant for transacting with Diem.
When Novi was released last year Diem was already dead but Meta managed to establish a partnership with Paxos. For now, the wallet is a pilot that allows sending the stablecoin Pax Dollar (USDP) in the US and Guatemala for selected customers. Since the stablecoin is a token on the Ethereum blockchain it is not unlikely that it will become also the home of Instagram NFTs. But there are also rumours that the Aptos blockchain might become the next big thing. It was founded by an ex-Meta employee and it was just yesterday when it became known that the new layer-1 blockchain project received $200 million in funding.