If you haven’t heard about NFTs still now then you will. NFT is a mind-blowing and revolutionary technology that is powered by blockchain technology. In today’s world, the NFT community is growing very fast than ever before and everyone is going with this hype.
So, what this NFT actually is, and how it is changing the world?
Let’s find the answer.
What NFT actually is?
NFT is one of the most powerful and impactful concepts in blockchain technology that stands for Non-Fungible Token, which is a database record on the blockchain that refers to a unique specific digital asset or a file that generates a unique signature. NFTs are unique and non-replaceable items, like bitcoin, Ethereum, etc.
NFTs are decentralized digital asset that has the potential to change the world of the web. Most of the NFT tokens are built on the Ethereum blockchain. NFTs are tokens that may grant access to exclusive content, future products, events, prizes, and so on.
What Makes NFTs Unique & Popular?
There are several characteristics of NFTs that makes them unique and popular;
1. Unique and Scarce
NFTs are unique and this is the reason it holds value. It is common sense that, if the number of things is limited it will have a high value. Similarly, NFTs are also rare and this is because it’s another reason for being high value of NFTs.
2. Unbreakable and Impenetrable
NFTs are impossible to break into smaller units and cannot transfer even a tiny segment of NFTs to anyone. Blockchain makes this easier by allowing us to trace the original owner/proof of origin of the NFT.
3. Incorruptible
NFTs are securely stored on the blockchain and are well-organized. They are highly secure because of this. An NFT’s data cannot be altered, modified, or replicated.
4. Un-Interoperability
NFT data cannot be traded or used in any way. They are unique. You cannot exchange a plane ticket. Each one is unique and includes your name, seat number, and other information that no one else has.
How NFT is changing the world?
- NFTs eliminate the middleman.
- NFTs can be sold directly by you, without the need to distribute tickets to your community or audience.
- Entrepreneurs and business owners will be the ones who can take benefit from this blockchain technology.
- NFTs will also allow content creators to connect to the community, sell tokens for exclusive material and create a one-of-a-kind art piece from that content creator.
- These artworks cannot be copied or duplicated. These artworks were created originally to protect the work of copyright artists.
- This means that only one person can own the original or a small number of rare pieces from that content creator or artist.
- The way we communicate and share information is changing with NFTs.
- It can be a great way for consumers to keep something personal and unique from their favorite content creators.
Conclusion
Although NFTs were established in 2014, they are now gaining popularity as a popular method to sell and buy digital artwork. Since November 2017, $174 million has been invested in Non-Fungible Tokens.
NFTs are essentially creating digital scarcity. This contrasts starkly with the vast majority of digital creations which almost always have an infinite supply. The theory is that reducing supply will increase the asset’s value, provided it is in high demand.
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