When the cryptocurrency made its first appearance in 2009, it was nothing short of a revolution and it flabbergasted a lot of tourists who believed in traditional financial systems. A currency that could exist without a physical representation and outside any centralization was unimaginable for them. Today, the bitcoin being valued at close to $60,000 is a resounding testimony to the power, reliability, and awesomeness of blockchain technology and cryptocurrency.
Blockchain technology, although it started with cryptocurrency, has manifested itself into various forms and utilities. Most of them, however, had to do something with monetary transactions. Although people had explored a few arenas of application like identity theft curbing, none of them had created an impact as powerful as non-fungible tokens, commonly abbreviated NFT.
NFTs have been created keeping in mind the fact that owning something in itself is a sign of power that could possibly translate into profit.
Ownership As A Currency
non-fungible tokens represent ownership on the blockchain. Ownership might not mean anything… Until it pertains to something unique. An NFT is precisely expected to address this issue by making ownership of unique assets and creations transparent, easily transferable, and at the same time, extremely secure.
All these attributes can be credited to the default properties of the blockchain technology on which NFTs run.
To understand what non-fungible tokens are, you will need to understand the concept of fungibility. An asset can be considered fungible if it can easily be exchanged for another similar as it without any deterioration in its value.
Probably one of the best examples of a fungible asset is the dollar bill. If you take a $10 bill, it is identical to any other $10 bill in its value. Although it is unique in terms of its serial number, the uniqueness does not distinguish a particular dollar bill in any way than any other $10 bill in terms of its value.
You can easily exchange any $10 bill for another $10 bill and even 10 one-dollar bills. There are asset classes that can be considered similar to the dollar bill and that implies that they are fungible.
non-fungible tokens, on the other hand, have certain properties that make them a stark contrast to fungible assets and tokens.
Uses Of Non-Fungible Tokens
NFTs have a wide variety of applications and it came to light only after the recent NFT boom. NFTs have been endorsed by celebrities like Lindsay Lohan and there have been instances of people making million-dollar sales of ownership of virtual items, art pieces, digital creations, music videos, and collectibles.
NFTs Find Extensive Applications In The Following Fields:
Gaming – gaming is one of the most engaging hobbies and there are a lot of virtual items present within the gaming world. They are unique not only in their form but also sometimes in their functionality. People in the gaming world can trade ownership of these assets on the blockchain by using non-fungible tokens.
Music and art – Music and art but always centered around music labels, recording companies, and articulation companies. However, with NFTs being introduced, it becomes easy for music and art creators to sell their work, defining the rights of ownership to a particular person/patron who wants to hold the license.
It is to be remembered that while NFTs do not sell the product, they bestow The rights of ownership to the person who has the non-fungible token. Artists can choose to create a single token or multiple NFTs.
How Do NFTs Work?
non-fungible tokens, instead of representing the product itself, represent ownership of creation. It is comparable to a patent but with its own set of advantages and limitations. Transferability, transparency, and security can be considered advantageous. The NFT can only hold true4 creations And virtual items as of now.
It is quite possible that non-fungible tokens can have their utility extended into the world of digital identity management and identity security.
Why Are NFTs Important?
NFTs not only extend the goodness of blockchain technology for digital creators. They also play an important role in breaking the monopoly that big media companies like Google and Facebook have over creations. To this day, Google and Facebook have advertising programs that enable content creators to advertise over their network but give a percentage of commissions to these platform providers. However, with non-fungible tokens, the creator directly gets to control the commercials of the creation.
This is expected to be a massive transformation and rather a revolution when it comes to making a profit from creative digital assets.
Time For A Decentralized Creator-Oriented Economy
It wouldn’t be an exaggeration to say that blockchain technology is spearheading the decentralization revolution. This comes in at the right time when there are a lot of independent artists and digital creators who have increased visibility because of the Internet.
While on one side, there are celebrities like Lindsay Lohan who have sold their creations as non-fungible tokens, there are even meme creators who are able to capitalize on NFTs. For example, the burning house girl meme was auctioned as an NFT for $500,000. This might not have been possible if not for NFTs.
NFTs are en vogue, especially in the past few months. There are increasing instances of digital art creators and musicians putting up their work for sale on NFT market places like Rarible. It would not be surprising to see a blockchain-oriented network for the creation and management of music, videos, art, and anything creative using non-fungible tokens.
If you are an expiring blockchain entrepreneur who would like to capitalize on the next big wave, non-fungible tokens are one of the best areas you can invest in. All you need to do is get in touch with a company that specializes in NFT platform development. They will take care to understand your requirement, analyze the business dimension of what you need, and present you with a perfect solution that will help you launch yourself into the lucrative world of blockchain technology and non-fungible tokens.