The development of technology that we feel today really has a significant impact on metropolitan human life, starting from the use of technology in every activity such as education, automotive and lifestyle.
One of the new trends that are quite attractive at this time of technology is buying and selling computerized assets, NFT is one of the advanced asset products that is currently being discussed a lot.
What does NFT mean? What is its function and what are its benefits? The following is a review of the meaning, function and benefits of NFT.
Understanding NFT
NFT stands for non-fungible token, as explained above that NFT is a computerized asset that represents objects in the real world. Examples of NFT itself are painting, music, things in games, to short videos.
According to Forbes, the systematic way of buying and selling NFT is on the web. Digital money or crypto currency is one of the currencies that can be used to make NFT purchases.
We can easily define NFT as an advanced asset that represents a valuable item with a value that cannot be replaced or exchanged. Each NFT has transaction record data in the blockchain. This information contains the creator, price, and ownership history.
NFT function
After knowing about the meaning of NFT, now we will discuss what the function of the NFT is.
Here are some functions of NFT that you need to know :
1. Art Industry
The first function of the NFT is for the arts industry. The characteristics and uniqueness of the NFT re-evaluate the advanced arts sector. NFT offers the security needed for works published online, where content can be distributed freely and can be claimed easily, causing harm to the creator.
2. Business
The property, asset, license and sports businesses are also inseparable from the business sectors that benefit from this NFT. It's easy because every transaction that occurs is recorded on the blockchain, so it can minimize theft, fraud and loss of assets.
3. Hobbies and Entertainment
Footage from NBA Top Shot, the virtual cat from CryptoKitties, and the unique symbols from CryptoPunks, CryptoKitties and Axie Infinity are some examples of how NFTs function in the entertainment and hobby sectors.
Benefits of NFT
As we know that NFT is currently being discussed all over the world, the popularity of NFT makes everyone want to try to own this asset.
Of course, this is done because NFT has benefits, one of the benefits of NFT that you need to know is that it makes it easier for artists and content makers to promote and sell their digital works.
They will most likely get a commission for every NFT asset they own is sold and changes ownership.
Disadvantages and Risks of NFT
However, there is one thing that you need to pay attention to when deciding whether to enter into this computerized asset transaction, like real art, NFT also has the potential to be lost. A small example is when he finds that an account has been hacked, what will happen is that he will lose all access, including NFT wallet access.
Thus is a review of the meaning, function and benefits of NFT. Hopefully it can provide new insights for all of you, especially for those of you who are starting to be interested in buying and selling computerized assets.