Exciting & Enthralling Facts about NFTs

Ever since bitcoin was introduced in 2009, the entire journey of cryptocurrency, the blockchain technology, and all its manifestations has been the least exciting! There have been a lot of ups and downs, and there have been instances when the technology was  sometimes as a game-changer and sometimes as an abode of scams. However, it cannot be denied that the roller coaster ride that cryptocurrency is has now culminated in non-fungible tokens or NFTs as they are commonly abbreviated.

NFTs have taken the world by storm, and it is healed as the next big thing not only in the world of blockchain and not only in the world of art but also in the world of investments. It has opened up opportunities for small artists to create their own crypto masterpieces and sell them as an NFT.

Understanding fungibility

To understand what these non-fungible tokens are, it is important to understand the concept of fungibility. When an asset is considered fungible, it basically means that you can replace that asset with another similar equivalent without suffering any losses in value. The currency note that we use can be considered one of the best examples of a fungible asset.

If you were to replace a $100 bill with another $100 bill, there is not going to be any change in the value. Although there is an element of uniqueness associated with every $100 bill, it does not make any difference to its value.

At the polar opposite end of fungibility life non-fungibility. Non-fungible asset is something that is unique and it cannot be broken down into smaller equivalents like how you would break your fiat or cryptocurrency.

A non-fungible token opens up opportunities for creating digital equivalents of A lot of unique properties. It has literally opened the floodgates with respect to digital creations, unique digital entities in the open world of the internet, sports moment, and of course, collectible art and trophy real estate.

NFT marketplaces have revolutionized the way people transact NFT. It has opened opportunities even for individual creators to have their creation listed as an NFT. Some NFTs even have facilities to guide beginners, so you can create your own NFT without any hassle, sell it for some crypto money, and make your profit. The only requirement is that you open an account with an NFT market place and you have a crypto wallet to transact/store your crypto fund.

The different dimensions of NFTs

We have looked at a few of the possibilities with the NFTs. Let us look at the different examples for each one.

The first tweet on Twitter by Jack Dorsey was auctioned off as an NFT for $2.9 million. It might not, on the surface, makes sense. However, the person who owns the tweet now gets royalties for every time the tweet is mentioned in that context.

Some of the most prolific creations on the internet but also sold as NFTs. The trending YouTube video “Charlie bit me“ was sold in an auction as an NFT. The same goes for evergreen meme templates like “disaster girl“ and “overly possessive girlfriend.”

An art collector who goes by the name MetaKovan recently purchased crypto up as an NFT for a staggering $69 million. This is one of the many popular purchases of crypto art that have been in the order of an average of $500,000.

There have been attempts to create a digital equivalent of the surface of the earth and that has been divided into equal land areas. People can now invest in virtual real estate, and this opens up opportunities for people to own some renowned landmarks like the Eiffel tower, the Empire State Building, and downtown Manhattan. Some people have also considered buying the digital equivalent of their childhood home or ancestral property.

It is quite known that people can also purchase virtual cats/kittens in one of the most prominent NFTs that heralded its glory to the world: Cryptokitties.

All this notwithstanding, some museums have released digital replicas of art that they own, signed by the curator of the museum. A museum in France has released a digital replica of one of the last works of Michelangelo.

The National Basketball Association (NBA) has created its own NFT marketplace called NBA TopShots where fans can buy some of the most iconic moments in NBA history. This helps fans more meaningfully engage with the game and the league in general.

The future of NFTs

As much as we see NFTs making waves with respect to both technology and art/collectibles/real estate, it cannot be denied that the entire innovation is in its infancy. It has got quite a long way to go.

A good example would be if the success of basketball in the United States could be replicated for games like cricket in India and soccer in Europe. The auction of digital representations of art could very well be extended to marvelous pieces of architecture.

In all of this, the legal system behind the blockchain technology and cryptocurrency is yet to catch up, leave alone NFTs. Some jurisdictions have welcomed NFTs as valid methods of investment. However, quite some of the jurisdictions around the world have been quite averse to the idea of NFTs.

It would take some more time before every country in the world embraces crypto, the blockchain to technology, and its manifestations. In the positive direction, a lot of countries have accepted cryptocurrency exchanges to be valid Financial businesses. If this can happen, it will not be long before every dimension of distributed ledger technology becomes mainstream.

Conclusion

When you know that something is bound to bloom in the future, it only makes sense to invest in that domain, and the world of blockchain and NFTs cannot be an exception to this golden rule. If you are an aspiring entrepreneur who would like to start early, you can approach a company that specializes in NFT marketplace development. They will present you with perfect technical solutions, and with the right marketing and partnerships, you can be the next big name in the NFT landscape.