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The digital world is evolving at an unprecedented rate, and one of its newest innovations is NFTs. These Non-Fungible Tokens are used in crafting original digital goods that would otherwise never exist through the use of blockchain technology to authenticate them with added value for collectors everywhere. We are just beginning to see the use cases for NFTs take off so let’s jump right in.
This post will give you an introduction to this emerging field so that you too can see how these tokens are generating real-world value!
NFTs are taking the world of blockchain by storm. These new and exciting virtual tokens can be used as a way to represent digital assets such as collectibles, artwork, or other unique items. Additionally, they can be used as a representation of ownership of a non-digital good, like a gold bar or luxury item held safely at a warehouse.
But what makes an NFT different from a regular online image? The answer is in the blockchain. While it would take many articles to truly get into the specifics of blockchain we will give a brief overview. A blockchain is a distributed database that is shared across many different computers and cannot be manually changed, unlike a centralized database that is stored on a specific server and can be modified by the owner. As a database, the blockchain stores and validates information which creates a trustless system for tracking assets without the need for a third party.
NFTs come in all different shapes and sizes. They can be a piece of artwork, an avatar, or even a visual representation of a physical good, like a diamond. What makes NFTs so exciting is how many different real-world use cases. With the ability to take any form and issue, NFTs are boundless. From Crypto Kitties that have become a staple in many people's lives - to paintings on a blockchain which can be sold without relying on expensive galleries or auction houses - the list goes on!
The development and implementation of this technology will continue to grow exponentially with each passing year as more people realize its potential benefits over traditional forms of property rights.
The world is shifting towards all things being in a digital format. Prior to NFTs, digital art was essentially a hobby for artists while they made a living doing other work. NFTs and blockchains have enabled a global distribution and payment network for the artist allowing them to reach collectors far and wide, while providing an incorruptible proof of ownership for the collector and an easy and fast way to buy.
For many people, the value of an item is directly related to its tangibility, and that's no different with NFTs. Ownership can be verified through the blockchain and certain NFTs also convey ownership to real-world objects or membership to specific communities which creates a higher form of collectibility for those who want something more tangible than just metadata on files stored in cyberspace. While these are just some uses of NFTs, we are still in the early stages of development and it remains to be seen all the creative ways people will come up with to push the boundaries of this technology.