Blockchain technology is rapidly integrating into various areas of our lives. There are so many developments that it is not always possible to keep abreast of the news. One of these developments that turned the world of the blockchain industry has become NFT. What is the essence of NFT?
Let’s start with a definition.
NFT – Non-fungible token, which translates as “Non-fungible token.”
Non-fungible means that which is excluded from the concept of equivalent exchange. An object exists in a single copy and cannot be replaced or faked. NFT started in 2012. The first collection was called Colored Coins and was released to provide more significant opportunities to secure buyer ownership and integrate a digital signature into each asset unit.
What is NFT in simple words?
NFT is a digital asset in which a unique signature is encrypted; it is a certificate of authenticity. Paintings, songs, game characters, collections of famous brands, artists, and more can be purchased at particular sites – “NFT markets.” Every day, the NFT trading turnover is growing, as is the number of collections. At the moment, these “tokens” have become real gold, and popular nft collections bring hundreds of millions of dollars.
What benefits does NFT bring to you?
A person who has bought his first NFT will undoubtedly ask, “What to do next?”.
Consider the benefits:
1. Depending on the collection, you contribute to the development of a particular project, whether protecting wild animals or fighting for the environment.
2. Among other things, thanks to your transactions, the blockchain network is developing, opening up more and more opportunities for implementing the most daring projects.
3. The third benefit of owning NFTs is the enormous profit potential. Buying a variety of collections: with images, collectible cards – an endless world, plunging into which you understand – the future is already here, and most importantly – you are directly involved in its onset
4. Having bought a game character as an NFT, you can use it in the game and buy virtual lands, thereby earning cryptocurrency. Then NFT can be sold several times more expensive and reinvested, increasing your capital.
The application potential is endless. Already, the technology is being used in making deals, acquiring natural art objects, and game characters.
For example, the Hermitage sold the painting “Madonna Litta” from its collection:
In the game “The Sandbox,” where the player can buy and generate characters, buy land, complete tasks and receive cryptocurrency for them:
Also, with the help of NFT, contracts will be concluded, membership in various service areas will be registered, and this is just the beginning!
