NFT: What It Is And Why It's Important - The eBay of Blockchain

In this article, I am going to be discussing the concept of Non-Fungible Tokens (NFTs), what it is and how they will change the world.

So what exactly is an NFT, and how is it different from other cryptocurrencies? I've put together a handy guide for those who are new to the space, or for those who have been wondering how to invest in the "eBay of Blockchain". First of all, here's an intro to the concept:

NFTs were born to act as proxies for the real things they're representing. They can be a digital scrap of stock footage or even a plant you bought at a pottery shop. You can trade these (usually referred to as "binary assets" or "smart property") with other folks who might be interested in having the same thing. They aren't quite as powerful as the physical objects they represent, which aren't yet on the blockchain.

The future of NFTs

NFTs are the future. The modern economy is now based on digital currencies, and cryptocurrency is making the impossible possible. The fact that both cash and securities are increasingly digital means that there is less and less room for fiat currencies and our current system of legal tender.

Some of this was obvious to anyone who has done any transactional activity over the internet. For example, Digital currencies with small transaction fees are often more valuable to consumers than some of the world's most respected currencies, such as the dollar, euro, or yen. 

Similarly, the way companies are trading, buying, and selling goods and services online is becoming increasingly similar to the way consumers use their bank accounts.

What is the difference between an NFT and a cryptocurrency?

Crypto and NFTs are different because of the way they are exchanged. Cryptocurrencies are technically true electronic cash: you can transfer crypto from one person to another over the internet.

What this means is that a lot of startups and businesses are looking to harness the ability to create cryptos. This includes cryptocurrencies like Bitcoin and Ethereum, which are similar to regular money, but that is all they have in common. A non-fungible token, on the other hand, would allow you to transfer ownership of a unique article like a painting or a taco. There are a few types of NFTs, and you will often see, these in reference to;

• Art pieces:

NFTs are legal tender for art or collectibles.

• Music rights:

NFTs are like rights of ownership: only the person who owns them can use them.

My Verdict

Non-fungible tokens—also called asset-backed tokens—are decentralized forms of cryptocurrencies, meaning they do not require a central server for secure transactions and are not issued by any single authority. Such tokens represent the ownership of a good or service.

NFTs are primarily a tool for tokenized goods and are not intended for day-to-day spending on credit cards. Rather, they are a compelling tool for entities wishing to bring a "tokens as currencies" model to their market. ( yeah, okay this part may not make sense but it true, and "I've already written it")so 🤷‍♂️😊.

Images from Google images, Unsplash , New York Times & @scottcbusiness

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