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What is the future of NFTs?

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7 months ago

Non-Fungible Tokens or NFTs can be basically anything, and they do have value, but that is based on their unique properties. By having an NFT you are having ownership of unique objects and that ownership is secured in the blockchain. Some examples of NFT Development company are digital works of art, collectibles, but it could be houses or cars.Each token has a unique identifier, and is not exchangeable for other tokens 1 to 1. Each NFT has an owner and is easily verifiable. Likewise, the creator of an NFT defines the scarcity of that token.

What are the advantages it represents?

During his speech at the DeFi and NFT Summit 2021, Chopra highlighted some opportunities and advantages that NFTs provide. giving them the rarity that corresponds to offline assets. But digital assets are available today only within a certain platform, he said.

With this he gave an example that in today’s world, the digital usually happens to belong in some way to the platform on which you upload the content, but with blockchain-based NFTs this would not be the predominant case.

With NFTs “ artists can create their work on any platform and are not limited by that platform . If someone today wants to create something and upload it to Instagram, they upload it, but there are many countries where Instagram does not work. And that, that possibility, is given to them through the NFT system,” he said.

He also commented that with NFTs we always know who the original author is, because that is written in the blockchain . Therefore, in a certain way, problems related to intellectual property are avoided. No matter how many times the content is copied, you will always know where it originally came from . He also noted that with NFTs, creators determine the level of rarity or accessibility of this or that thing. “You can always create a unique NFT identifier. Ownership rights never pass to the platform, they always belong to the creator ,” added Chopra.

The video game industry is the one that benefits the most from NFTs
One of the industries in which the engineer considers that non-fungible tokens have more opportunity is in video games. He mentioned that NFTs can provide ownership records for items within a game, and boost internal game economies. You can sell items purchased in the game, but the items can also exceed the time of the game itself. That is, it does not matter if a game is no longer maintained by its developers, NFT Token Development Company of that game on the blockchain, this already transcends it.

With NFTs there are unique items that go beyond the world of collectibles, or art. «You can buy a virtual land, that there is a space for a digital conference. Then you can charge people to be able to visit this digital conference with limited space.” Interesting, right?

Do non-fungible tokens have a carbon footprint?

“As a developer engineer, I am always thinking about the carbon footprint of the technologies used by the code I am writing. Let’s see what happens with the ecology of NFTs. It is that there are many people who think that NFTs are harmful to the ecology and I would like to tell them that this is not the case, “said Chopra.

In that sense, he spoke of Ethereum and said that with the update in which mining is passed from proof of work (PoW) to proof of staking (PoS), the reduction in energy expenditure is considerable. And this is important for many NFTs, because they are based on the Ethereum blockchain.

Future of NFTs

For the expert, the future of NFTs is one that holds many opportunities that could be taken advantage of by a multitude of industries. One of the most interesting views is in which he relates NFTs to DeFi, or decentralized finance. DeFi allows you to borrow money using cryptocurrency collateral, and instead of cryptocurrency, NFTs could act as collateral. And considering that both DeFi and NFTs have a common infrastructure on Ethereum, it could make the process easier.

Additionally, he mentioned the opportunity this world provides for fractional ownership of NFTs. “We have apps that allow you to buy a piece of stock, for example Robin Hood. But we would like to make it possible also with NFTs, so that you can also buy a part or a fraction of NFTs; so that investors can own a small part of the entire object. For example, you may be the owner of a part of Picasso’s work.

Also, the idea of NFT can be applied to other assets, because today, for example, they use social networks, where you upload your photos, your videos and you can also convert them into NFT. This is how, for example, the CEO of Twitter managed to sell his first tweet for $2.9 million . Apparently, we have a rather unknown, but exciting future ahead of us when it comes to potential uses for NFTs.

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