The beNeFiTs of NFT’s
There’s a New Fresh Thing that you’ve probably heard of… but what really is it and why is it so popular?
An NFT or a non-fungible token is a unique digital code that represents some kind of digital item. NFTs, such as digital art or music, are secured and stored on a public blockchain, which can’t be copied or stolen. Non-fungible means something can’t be changed for another or further divided because it is unique. For example, your house and a Broadway ticket are non-fungible. You can’t just switch the “Mona Lisa” with “The Last Supper” because they are both unique in various aspects.
Photo by [Realm 10]
It’s important to note that NFTs aren’t just a virtual art gallery. NFTs’ allow for increased security and have created improvements in many industries. For example, many music artists have started copyrighting their music as NFTs. You can even use them to buy or sell domains through the NFT marketplace.
Even though NFTs have been around since 2014, NFTs are becoming increasingly popular now due to the increase in buying and selling in the market of digital artwork. But on a deeper level, these NFTs are made with unique identifying codes that create a one-of-a-kind, verifiable digital asset that can be traded across the NFT market. By cutting off the supply of the item, the value of the unique asset will rise if it’s in demand. Every NFT comes with its specific virtual signature which confirms both the ownership and legitimacy of the NFTs. The highly secure and encrypted blockchain makes sure that the NFT can’t be duplicated and reduces the fraud of artwork.
Cryptocurrency vs. NFTs
You may wonder how this is different from cryptocurrency, which also uses blockchain technology. However, NFTs are seen as only a piece of the cryptocurrency world because cryptocurrency is used to buy and sell NFTs. Furthermore, cryptocurrency is a currency, so like every other currency, it is fungible or has a set economic price. On the other hand, NFTs are non-fungible and don’t have a set economic value. If the NFT does not already have a real-world value then the value of the NFT is based upon the income generated. Or in other words, the value depends on the supply and demand of that NFT.
Ultimately, the NFT market is an amazing opportunity for anyone interested in digital art and has created a major buzz throughout the social media, business, and art worlds.
