Quite simply: NFTs are crypto assets. This is not the same as cryptocurrency, which you can immediately withdraw and spend. This is some object that has passed verification, ended up in the blockchain and now belongs to you, which means it can be sold. Thus, any work of art or an X-ray of someone’s teeth can be turned into an asset.
Let’s spell out the abbreviation. NFT – non fungible token or unique cryptographic token. Let’s spell it – N: non fungible, irreplaceable, unique, that is, one that has no analogue. The letter “T” – token, indicates to us that this is an asset associated with the blockchain. Strictly speaking, it is simply a separate unit programmed into the blockchain code. NFT technically cannot be destroyed or replaced with another similar token. The owner of such a token becomes the owner of a unique object. And his property is reliably protected – after all, all transaction records are in a single, open blockchain system.
Skeptics do not believe in this uniqueness, predicting the imminent death of the concept of cryptocurrencies, but there are also blockchain development optimists who are in a hurry to bite off their piece of the pie in the new market and not miss the opportunity to participate in it. And if you are one of them and need modern solutions, then blockchain development services will help you.
NFT for collectibles
In the physical world, certified unique items are often referred to as “collectibles.” It is easy to see why both individuals and large corporations (especially in the entertainment industry) create NFTs from their products, the biggest and best example of this is the NBA, whose TopShot program allows fans to buy and “own” footage of a game.
Fragments of games cannot have physical form, but they can be recorded on the blockchain and sold to fans. The result is an endless collection that is constantly growing. It’s like collecting cards from American baseball teams, except in the case of NFT, it’s an endless circulation of such cards. In addition, the blockchain is not afraid of rain, fire and time, so the asset is under more reliable protection than a physical object.
NFT proves to us that it is not quality, but uniqueness that makes works of art or collectibles valuable.
Where to buy NFT
In fact, buying art in the real world is harder than you think. When was the last time you were at Sotheby’s? But NFT makes selling art more democratic. Now you can buy contemporary art everywhere. Anyone with an internet connection can do this. Popular sites include digital art exchanges such as Zora, Rarible, CryptoPunks, Opensea, and Foundation.
NFT asset developers like Dapper Labs will sell you Cryptokitty (digital cats you can collect) or NBA TopShot (* modern version of baseball cards that were once actively collected and sold in the US). If you are into gaming, Gods Unchained will sell you in-game assets as NFTs. If you need virtual real estate, the Decentraland project will help. Maybe you wanted to participate in the fast-growing NFT-based market, but you need a reliable and knowledgeable technology partner? Using NFT marketplace development services will be a good solution.
The future of NFT
As we just found out, NFT promises to change the structure and nature of the ownership of contemporary art or any other token, as well as the way people buy and sell. Following this, the income of those who benefit from trade will also change.
Billion dollar cat memes are fun, but many investors are already convinced that in fact, they are not the main thing.
With NFT, any asset can become “tokenized.” It is the ideal copyright protection system. This means that it cannot be copied or reproduced for free. The chain of ownership of an object has always existed, but never before, it could not be traced with such precision.
And in the future, this could mean that the power over art will be wrested from the hands of middlemen (banks, record companies, platforms) and transferred to creators (game developers, artists). Imagine a world in which all songs are labeled so that every artist gets paid for every use of their song without the need for Spotify. Imagine a world in which physical assets – real estate, luxury goods are also registered in the blockchain.