NFTs and what to know about upcoming trends in Crypto Market
NFT or Non-fungible Token has been one of the most discussed word in the Crypto world. Although there are many NFT projects back in 2017, the rise of NFT till this day is very noticeable.
An introduction to NFT
Non-fungible Token or NFT can be described as a cryptographic token that represents an asset in the crypto world. The word “fungible” stands for the property of assets that are interchangeable and indistinguishable from each other. To make it simple, Bitcoin is fungible. 1 bitcoin is equal to 1 bitcoin. You can divide the value of 1 Bitcoin into many ways, such as 10 times of 0.1 bitcoin can be equal to 1 bitcoin or 5 times of 0.2 bitcoin is equal to 1 bitcoin.
However, non-fungible represent unique assets that cannot be replaceable. Each asset has its own unique characteristics because there is only just one unit of it. For example, a Mona Lisa picture can be considered to be non-fungible. Due to its rarity and unique in arts, it cannot be replaced by any form of other assets. Beside arts, non-fungible tokens can be seen in land property, rare collection of cards, etc.
NFTs are non-fungible digital assets. Each NFT does not have any characteristics in common although they are built on the same blockchain system.
NFTs unique attributes
Uniqueness
Due to its nature is not interchangeable, there are no NFTs that are the same. Each NFT has an unalterable metadata, the coding process is much different from each other and this has create values for NFTs.
Scarcity
One factor that thrive NFTs so valuable is that they are very scarce. In a collection of cards, there will be cards having a large quantity with no rarity or several cards with tremendous rarity and value but come with only 1 or 2 cards.
Indivisibility
When it comes to utility, NFTS are indivisibility. As mentioned above, a unit of 1 bitcoin can be divided into many ways. However, an NFT token or assets cannot be divided. Same thing can go for buying paintings, plane tickets.
Applications of NFTs
What can NFTs do ?
Back in 2017, there was a game called Crypto Kitties that allowed players to collect, breed and exchange virtual cats. With each cat having a different set of eyes, hair colors or even cosmetics, they have different values. Crypto Kitties then cannot be interchanged and divided into different parts, making it as one of the most valuable NFTs.
For each player playing Crytokitties, we can see that NFTs bring us a more powerful form of ownership. Ownership rights in digital age can be very troublesome due to the fact that many existing centralized and digital properties are not totally owned by users. Building on a blockchain system, you have total control over your digital assets such as NFTs.
In addition, convenience in transactions attracts a majority of people to start investing in NFTs. There are certain regulations and strict laws related to the transactions and trading of normal assets. Making transactions across the borders may take days or even months but for NFTs, all you have to do is click.
Transparency is the best feature NFTs can give. Building on the Blockchain system, NFTs can prevent fraud when each asset has its own unique line of code generated using Blockchain, making every digital product unique. The transparency it offers makes NFTs one step closer to the tokenization of products.
NFTs applications
Physical and digital assets
Having said that transparency is what NFTs will offer, most products and assets in the future will be tokenized. In current time, artists and content creators are having lots of trouble in copyrights and ownerships. From arts, music to cinematic, copyright infringement is a very troublesome problem for the many. With NFTs, people can tokenize a product, put it on a blockchain network, validate their ownership of that product and receive profits through transparent transactions.
Gaming
Becoming the most popular application of NFTs, NFTs gaming is widely known for its users absolute ownership in their in-game currencies and items. Building on a decentralized network, no one will have total control over your in-game items more than you do. You can sell, trade, making transactions any time you want.
Identifications and certifications
Specific or important information can be programmed into a product or asset using NFT. This enables users to trace back to the source of products to ensure the authenticity of products. From this feature of NFTs, it can be seen the involvement of NFTs in such major fields like: Medical (medical records), agriculture (origin of product), education (digital certificates), etc.
Non-fungible token (NFTs) in the future
Looking at the features as well as its real-life applications, NFTs is a promising technology that packs full potential in changing the way we live. However, NFT market cap is still considered to be small with just a total of over $300 millions in capital.
Most noticeable application of NFTs are now Blockchain games. However, the creation of Sorare with the corporation from many European soccer teams has enabled a platform where people can build a collection of sport cards, becoming the managers and use their cards to compete with others weekly for rewards and prizes. This paves way for a brighter future of NFTs when its involvement in big industries is not just a fantasy or theory anymore.
Without Defi, NFTs will surely perish due to Defi being the main source of foreign funds. With NFTs, users can now easily access the crypto with nearly zero or very few knowledge of Blockchain or trading, making NFTs and cryptocurrencies widely known to the many.
