Understand NFTs, the hottest new thing in the world of Blockchain
An NFT or Non-Fungible Token is a digital asset that represents real-world objects which are unique and can’t be replaced with any currency or anything else. This is especially in the art and game industry where digital objects are frequently sold online, such as; art pieces, photos, music, in-game items, videos or digital files. I will share with you why NFTs are getting more hype these days and how the technology behind an NFT, which is Blockchain, plays a part in providing the owner with a proof of ownership that is separate from copyright.
It is undeniable to say that we are living in a world where technology can turn valuable or even invaluable and limited assets into something exchangeable on a certain platform. Through NFTs, someone can buy a creation and proudly showcase it in a virtual space with blockchain. Artists and talented creators can get a bigger cut of the payment and even portion out a residual profit from future sales, to create a recurring revenue stream. NFTs can be anything digital; such as drawings, art pieces, music, digital files or even a photo of LeBron James in a basketball match where fans can buy, sell and trade that perfect shot (or Top shot) worth 250,000 USD. The record-smashing NFT sale comes after months of increasingly valuable auctions of an artist named Beeple, who sold his first series of NFTs, "Everydays -The First 5000 Days" purely digital work of art ever offered, going for 69.3 million USD. It is somehow crazy to say that artists can make a living through NFTs. But keep in mind that an NFT’s value is based entirely on what people are willing to pay for it. Therefore, demand will drive the price rather than fundamental, technical or economic indicators.
NFTs exist on a blockchain, which is a distributed public ledger that records transactions. Unique data in blockchain makes it easy to verify their ownership and transfer tokens between owners. The owner or creator can also store specific information inside them.Through blockchain technology, an NFT can make itself a trusted means of conducting transactions as blockchain is a technology with great transparency that can enhance security, and improve traceability.
Now that we have seen, any cryptocurrencies such as the famous Bitcoin is not only a network that runs on a blockchain and secured by it, but in real life, anything that needs to keep records can be run by blockchain. It would make things more secure and transparent, as well as allowing people to have a complete tab on their data without getting hacked. For instance, blockchain can provide the best solution for anything that needs to be tracked down like in the supply chain, or other proof of ownership that needs to be recorded without any intermediaries to add transparency, accountability, and security to their operations or processes. Blockchain has started disrupting the real world we are living across the globe, no matter where we are, we can be connected if we have an internet network.
It is important to realize that technology is here to stay. In response to these rapid changes in those advanced technologies, we should learn to understand how to cope with and use it wisely. Because all the technologies are discovered and improved by humans, so humans like us will be living with it in many aspects and get along well with it in the future.