We are observing and experiencing the dominance of NFTs on an art and gaming industry. For anyone who doesn’t know what the hell NFT is, lets quickly jump into it:
NFT (Non-Fungible-Token) is an ERC-721 token. It is a unique and non-interchangeable unit of data which is stored on a digital ledger and cannot be updated or modified without consensus. In simple words, one can copy your asset, but cannot own it.
Importance of NFT
It is clear that NFTs can have only one owner at a time. Its unique data makes it easy to verify ownership from block chain and transfer tokens between owners. It is the future of ownership.
All kinds of physical objects like property, event tickets to houses will eventually have their ownership status tokenized with unique data in this way and is not replaceable or removable from block chain.
Characteristics of NFT:
Assuring the uniqueness of an object wipes out the concept of plagiarism and which was not possible before its advent. It permanently ensure the uniqueness of a digital object via the underlying blockchain technology.
Directly linked to the blockchain guarantee tamper-proof nature of the NFT. This property is essential for safeguarding asset ownership and business relationships in the digital space.
Standardization is important in order to integrate any object into business processes and make it exchangeable between all stakeholders in an ecosystem. NFTs uses ERC721 standard to create digital ecosystems.
Programmability of business processes The main difference between the conventional and digital objects is the connection of NFTs with logic. It is possible by the underlying smart contracts. This is already used in today’s NFTs.
For artists or creators, NFTs has solve the problem of monetizing their digital artworks. Now they don’t need to pay hefty amount to middle man for their artwork.
Thus, NFT’s non-fungible data eventually makes the piece of art unique. Everyday, all the computers on the huge network continuously check that the piece of art stored on the block chain is the original and unique, not a copy, and that it hasn’t been altered.
That’s why NFTs are very important for buyers or consumers. They are sure that they’re buying the real thing.
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