What are NFT’s?
NFT stands for Non-Fungible Token. Non-Fungible meaning that they are unique and one of a kind. To be Fungible, means something can be exchanged or replaced, like a $10 bill could be traded for another $10 bill, or even for smaller denominations that equal $10. NFT’s on the other hand are rare and not mutually interchangeable.
NFT’s are created on the Blockchain using programmable Smart Contracts. The same properties which make cryptocurrencies valuable, can be applied to NFT’s. As we progress from the physical World, NFT’s exist digitally. They are programmed with a unique signature, and the history is stored on the ledger of the Blockchain. You can prove the authenticity of an NFT and any other transaction details.
Use cases with NFT’s are limitless. Within an NFT contract, you could set parameters and they will be carried out automatically. For example, any time an NFT is sold to the next owner, a royalty can automatically be sent to the creator of the NFT. Imagine if an art piece made by Picasso was an NFT. Every time the art piece is sold, Picasso would receive a perpetual royalty.
Today, NFT’s have been adopted and used for Digital Art. They have grown popular with large communities supporting NFT creators. NFT’s are gaining more traction and growing in popularity within gaming, where you can now start to own in-game assets. As the ecosystem develops, the hope is that you will be able to use those assets and bring them into other games or spaces in the Digital World.
In the future, NFT’s could become more popular in our daily lives with use cases that span into the Financial and Legal areas. We could see them used for mortgages, real estate ownership or any contractual scenarios where the terms can be set and carried out independently.
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