NFT platforms: delivering unique content beyond marketplaces
Why do artists need NTFs, and what can you do with such tokens besides buy and sell? Here’s the future of NFTs and blockchain.The beginning of 2021 was marked by unprecedentedly high interest in non-fungible token or NFT technology in various fields, peaking in March. Nowadays, news about art deals with NFTs appear every day. What’s even more interesting is that NFTs are becoming fashionable among people who previously had no idea about crypto.
Recently, NFTs came into the spotlight largely due to the exploding market for collectibles or digital collectibles. These are often digital works of art that are represented on the blockchain by an NFT. This allows investors and collectors to actually own digital art objects, as they would a physical painting in your living room.
While digital artwork is being shipped from wallet to wallet for millions of dollars, NFTs offer a variety of other uses. For example, think of football pictures that can be issued on the blockchain so you can collect them on your phone and trade them with others. Even festival tickets can be issued as NFTs, so you never have to stand outside a festival again to find out you have a fake ticket.
Many NFT enthusiasts are also looking to the gaming world. While you may be miles away from a unique digital weapon now, that item has no real monetary value in the game. Also, your weapon is just a digital file within the game that can basically be copied. NFTs in this situation make it possible to actually make that weapon unique without being able to copy it. You can then sell the weapon outside of the game to someone else for money! One of the projects that deals specifically with NFTs and games is discussed in the next section.
There are two approaches to tokenization: (1) blockchain technology (with its advantages, weaknesses, and shortcomings), and (2) cryptocurrency (with its advantages and disadvantages). On one side, the blockchain has the possibility to implement fully autonomous tokenization, while on the other side, cryptocurrencies have their shortcomings: They are difficult to use (if you’re a non-techy person, you won’t understand how cryptocurrencies work). You can’t manage them as you can with coins. They’re often highly volatile, with both equity and commodity tokens. You can’t use them on mainstream industries, since most legal services and other business models are not based on cryptocurrencies.
Perhaps the main reason for such widespread adoption of the concept is the benefits of the NFT asset class and its protocol. In fact, the value of each token is now about a third of the market cap of all publicly traded assets. A currency can hold a large amount of economic activity for a specific industry, like the US$100 trillion market for the global derivatives market. NFTs offer a more transparent and credible platform to manage the issue, trading, and token distribution of creative works. Furthermore, artists can create tokens as a medium for raising funds for their creative works. The tokens will be held and traded on a public blockchain to ensure high levels of privacy.
NFTs provide tools and mechanisms to address inefficiencies in the market. There’s no better way to learn about non-fungible tokens than through buying one. NFTs are very versatile. They are widely used in a variety of areas that differ in how they facilitate or improve market interactions. Although NFTs are currently a niche product in the art world, they will not remain a niche market for long.
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