As decentralized markets are gaining more traction and popularity, new technologies are springing up. This rapid increase has led to the investment of more than $6 billion in the development of blockchain solutions and the rise of new interesting innovations such as NFT (Non-fungible Token). Let’s look at what NFT is, the role it plays, and how it can be used in the real world.

 

Contents:

What Is NFT & How Does It Function?

Interesting Features of NFTs

Cannot be broken down in value

Cannot be destroyed

Maintained ownership

Applications of NFTs

Art

Patents

Real Estate

Online gaming

Final Thoughts

 

What Is NFT & How Does It Function?

NFTs are units of value or coins that represent a particular asset on a blockchain network. Each of these tokens is unique in what it stands for as well as what it’s worth. Therefore, it is virtually impossible to find any two coins that are the same. They are each designated with a special identifier which essentially separates them from the regular crypto coin.

 

NFTs have enabled many individuals to develop and trade one of their kind assets. They are well suited to represent high-value items that rely on rarity to increase their value. This way, the owner has the liberty of controlling who can have access to the asset without worrying about any sort of external influences. You can create as many NFT as you wish and each of them will be special in what it represents and its value.

 

The tokens created can be used to represent any asset. Thanks to this property, they have been adopted for a wide range of purposes ranging from art to gaming. At the current rate of growth, the potential for NFTs is unmeasurable.

 

Interesting Features of NFTs

We know that Non-fungible tokens represent a unique asset of a predetermined value. We also know that each one is unique. These are some of the features that you might understand at a surface level. However, there’s more. Here are a few properties that make NFTs truly remarkable as trading solutions:

 

Cannot be broken down in value

Each token is created to represent a certain asset. As such, the complete value cannot be divided into smaller denominations. Having a divisible token defeats the purpose entirely as it opens the portal to s system of multiple ownership. This is another core distinction with a crypto coin.

 

Cannot be destroyed

An NFT on a blockchain, once created cannot be destroyed. This token will continue to exist regardless of the actual state of the asset it represents. The only factor that might change this is the destruction of the blockchain network it operates on.

 

Maintained ownership

NFTs cannot be broken down into smaller sets, hence, the data they represent can only be owned by one individual. This unique property means that each coin can be traced by the first owner even taking into consideration the number of trades it has gone through.

 

The data represented by each token cannot be tampered with. This feature makes it useful for various fields which we will identify below.

 

Applications of NFTs

The first NFT was created in 2014, and since then it has been used in a variety of ways with the sole purpose of making difficult tasks more manageable or creating opportunities for trades that face a lot of restrictions of decentralized markets.

Art 

Non-fungible Tokens have created an opportunity for many digital artists to sell their work. By creating NFTs they can directly sell their art without going through any middlemen saving them a lot of time and money. Through blockchain platforms, they are able to keep their assets safe for as long as they want.

Patents

One of the best ways to make sure that a patent is not tampered with is by tokenizing it. NFTs provide the best option to do this as the owner is preserved and traceable.

 

Real Estate

Using NFTs to represent real word properties will play a huge role in reducing the amount of paperwork that keep’s this industry running. Tokens will highlight all the important information about a given property including ownership. This real-world application is still in its infancy but shows promising results so far.

 

Online gaming

The use of tokens in online gaming is getting more popular. With NFTs, games can trade various valuable items required for the various games they play without having to worry about security, overpaying or ownership of the product.

 

NFTs can also be useful in the insurance industry to represent different types of insurance policies, The solution can be used to represent various kinds of intellectual property, music and video files, etc.

 

Final Thoughts

NFTs are truly remarkable, especially considering what they can potentially bring to the table for so many industries. That being said, the technology is still in its infancy which could be the biggest obstacle it’s facing. Many individuals still don't understand what they are and how to use them but this will gradually change. Anyone can own an NFT and now seems to be the best time to explore it with the Finage services!

 

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