NFTs are the newest trend in cryptocurrency. They are also called Non Fungible Tokens, and they’re basically a way to create a completely unique and digitally signed file or image. The most popular use of NFTs is to represent digital ownership of goods in the blockchain.
Some examples are crypto-collectibles, like CryptoKitties, CryptoPunks, or Stayers Quality Canned Goods, but there are many other uses as well such as property deeds on the blockchain, certificates of authenticity for artwork, multimedia content contributors being paid with their creations through an ICO managed by NFTs – just about any time something that has value can be represented digitally could also use an NFT.
Some NFTs have recently sold to the public for real-world money, most notably CryptoKitties which raised $12.3 million in 2017. But here are 5 reasons why NFTs will become more widespread and how you could benefit from them in the future:
- They are fast and secure
NFTs can be represented digitally on the blockchain without any middlemen, such as a bank or a lawyer. There are no financial fees to have an NFT registered with a third-party certifier, or to transfer it between individuals. The blockchain ensures that nobody can falsify or tamper with an NFT because they are registered on this decentralized ledger.
- You can prove authenticity
With the way NFTs are digitally stored on a public blockchain, they can be verified by anyone. This includes an image of a fine art print, a digital photo of your face, or even your DNA profile. Digital certificates of authenticity for any kind of file or asset become easily traceable and revocable using this technology which negates paper certificates that can be faked inexpensively.
- They can be traded easily
NFTs are not limited to a single centralized service or company. They are freely tradeable on any peer-to-peer network, and can be bought and sold with cryptocurrency like Bitcoin. This opens up a whole new world of online commerce for digital assets which have been traditionally hard to buy and sell, especially for small amounts of money if you don’t have your own website or marketplace.
- You can change ownership quickly
Just like any other cryptocurrency, NFTs in a wallet on your smartphone can be transferred to another person almost instantly using only the free Bitcoin or Ethereum blockchain. This makes NFTs ideal for transferring digital goods such as tickets, vouchers, or loyalty points between big companies and customers in seconds.
- They’re cheaper and more efficient than getting a lawyer involved
When you want to transfer an item of value from one person to another, the easiest way to do that is by exchanging it for money and then using that money to buy what you bought. But this doesn’t have to be done on the blockchain.
Looks like NFTs are here to stay and they have the power to change the world. Figured you guys would like some insight on this new technology. Maybe it’s still a bit early for you to jump in and start developing your own NFTs, but if you’re thinking about selling any of your digital assets like art prints, music albums and digital files, or buying anything on the blockchain, this might be the time to do it!