Non-fungible tokens (NFT) are the latest sensation fuelling the cryptocurrency evolution. They are nothing but digital assets used to represent real-life objects such as art, music, games, and even videos. They accrue value as people can buy and sell them, as is the case with any other cryptocurrency.
However, there is a great difference between cryptocurrencies and NFTs, even though both leverage the underlying blockchain technology. The main difference stems from the fact that cryptocurrencies are fungible, which means one crypto can be exchanged for another or even physical money.
In contrast, NFTs are unique as they represent real-world objects thus cannot be exchanged. A digital signature that NFTs come with also makes it difficult to trade one for another.
NFTs’ growing popularity stems from their ability to allow people to own an original item in digital form. A built-in authentication system that serves as proof of ownership is another attribute that has always made them stand out.
The high-quality features of non-fungible tokens have seen them find great to use around different business fields.
NFTs in real estate
NFTs have gained a strong interest in the real estate sector, given that the underlying blockchain technology allows data and ownership to be recorded and stored securely. The underlying ledger technology averts the risk of data replication or manipulation when it comes to real estate dealings.
The use of blockchain technology, in this case, gets rid of intermediaries as transactions are carried between a buyer and a seller of real estate only. Likewise, high commission fees are done away with while ensuring direct transfer of ownership.
Curbing piracy in artworks
Piracy has always been a big challenge when it comes to digital artworks. Claims of people losing ownership of their digital works on posting online, let alone the same being replicated, have always been a big problem. Allegations of people assuming ownership of some artwork and selling without the owner’s permission are rampant.
Fast forward, non-fungible tokens are providing an ultimate answer pertaining to the ownership and distribution of digital artworks. In this case, NFTs introduce a ledger whereby ownership of any digital artwork is stored securely.
The digital ledger, in this case, averts the risk of unscrupulous people plagiarizing, stealing, or even assuming ownership of a given artwork once it is implanted into a ledger. The fact that NFTs distribute proof of ownership all the time makes it impossible for people to engage in copyright infringement.
In addition, NFTs are helping in the fight against counterfeits in the fashion industry. Over the years, the industry has struggled with cases of numerous sales of counterfeit products sold to customers. With NFTs, the problem is slowly being brought under control.
NFTs have made it possible for people to verify ownership and authenticity of products. Integration of NFTs in such items makes it possible to gather details about the place where the item was manufactured and details of the previous owners.
Non-fungible tokens have also given rise to the unique marketplace where various items are sold with ease. For instance, sports leagues and companies are increasingly leveraging NFTs features and developing a marketplace for multiple items.
The NBA Top Shot is an example of an NFT marketplace that digitizes breathtaking moments into a digital collectible. In return, the digitized moments are sold on the NFT marketplace. The NBA has successfully generated a significant amount of revenue by digitizing unique moments of the league and creating collectibles that are sold to people.
Nike is another company that is making great use of NFTs by introducing Cryptokicks. In this case, shoe enthusiasts can purchase shoes and also stand a chance to gain NFT from the shoes. With the NFT form, the shoe owners can edit and customize the shoe into a real-life shoe product.
NFTs acceptance and development have also paved the way for the development of decentralized exchanges where trading of non-fungible tokens takes place.
NFTs in the gaming world
Non-fungible tokens are poised to be a big hit in the gaming world as the need to trade and purchase digital assets continue to grow. For the longest time, it’s been impossible for people to monetize in-game items.
NFTs are increasingly changing this by allowing gamers to monetize in-build purchased digital items. In return, they can be able to sell the item. In NFT-based online gaming platforms, all in-build gaming items are represented in NFTs. Upon purchasing these items, gamers can also trade them for a profit in selling in any NFT marketplace.
The ability to sell in-built gaming items is one of the features that attract many people to NFT based online gaming platforms. NFTs are scarce, making gamers more motivated to pursue such items.
Use in memes
Memes are some of the most popular items known to deliver a message in the shortest way possible. Their growth in the social media domain has given rise to the need to try and profit from them as people use them.
Conversely, memes are increasingly being converted into NFTs and offered for sale in the NFT marketplace. Such platforms have made it possible for meme creators to monetize their entertainment work and stand a chance to generate some value from it.
In addition, given that the memes are minted into NFTs and cannot be manipulated. The underlying technology verifies ownership.
Non-fungible tokens adoption is still in the early days but poised to be a game-changer to many industries in the years to come. Blockchain innovation is helping many businesses claim the monetary benefits of their underlying assets.
However, it’s the technology’s ability to verify ownership and secure assets that are proving to be a game-changer. Conversely, NFTs are expected to help bridge the gap between the digital and the real world of business.