What is NFT Non-Fungible Token?
The word Fungible means something that can be substituted or something that holds the same value when substituted. Non-Fungible Tokens (NFT) mean digital art, collectables or something that can’t be substituted or interchanged, therefore an NFT is a cryptographic token that represents something unique and has an individual characteristic that sets it apart. Owning an NFT is like owning a rare piece of art but in this case, it is digital that, very uncommon and unique this helps them generate massive value.
The uniqueness of NFT lies in the fact that it can never be interchanged with another NFT as each one is more like a piece of art quite distinct from another NFT. Read more
Some may ask, are NFTs transferrable? How is it a digital asset if it’s a piece of art?…. Well NFTs are transferrable just like any other cryptocurrency but it’s unique in the way it is transferred on the blockchain, it’s common knowledge to have a ledger entry made on the blockchain when digital assets like Bitcoin is transferred and the same applies to NFTs however in that entry, there is also an address to the file, which establishes the ownership of that NFT which is time-stamped as well as the code which makes it easy to identify the owner of the NFT on the blockchain
NFT non-fungible Tokens Euphoria:
The Cryptocurrency space has witnessed several trends which have triggered bullish sentiments in some specific aspects of the market, the latest of this trend is the NFT craze which has seen exponential growth in the value of these digital arts. A lot of cryptocurrency enthusiasts are yet to grasp the whole essence of NFTs and it’s use cases while some others are busy making tons of money out of this newfound crypto goldmine, for example, are the digital collectables of games played by the teams of US-based National Basketball Association have garnered more than $200 million in sales so far.
The real question is, what is actually the real-world use case of NFTs? ….Is it worth the hype?… Will it stand the test of time?… These questions and many more have been asked by experts and newbies alike as we try to grasp this current trend.
People may wonder why NFTs are so expensive, well a piece of art in most cases is as valuable as the person who created it, take for example the painting of Mona Lisa will obviously fetch good money given that people hold her in high esteem as well as value her paintings.
Let’s liken this to having different versions of a particular piece of art in the real word of an artist like Leonardo Da Vinci or Mona Lisa, we all know there can only be one unique and original painting from these artists but we also know other artists have tried to recreate such images, similarly in the digital world there can be many copies of art but the ownership lies with the person who owns that token (NFT).
We believe the use cases of NFT is not yet fully unveiled as it will go beyond just protecting intellectual property rights, ownership rights of digital assets to even a much more conventional use case for the common man.
Protecting the intellectual property rights of several artists could be one of the most important use cases of NFTs as artists across the world continue to key into this new innovation to tokenize their creations and have them protected. Other use cases of NFT that will yet experience explosion are digital art, virtual land, gaming, collectables, finance etc. The hype around NFTs will surely stand the test of time no doubt.
Let’s ride the waves.