6 Reasons Why NFTs (Non-Fungible Tokens) Are Unique, And Why Are Popular
A non-fungible token is not interchangeable with other tokens. They are unique, one-of-a-kind digital assets that exist purely in the blockchain space. NFTs can represent ownership of digital or physical assets or any other.
An NFT is a token that cannot be divided and whose ownership and usage rights are verified via distributed ledger technology (DLT).
Unlike Bitcoin or any other cryptocurrency, each NFT token possesses unique data that makes it not interchangeable with each other resulting in vastly different use cases compared to their fungible counterparts.
Let’s take the example of Dollar to understand it. In case if you and I have USD and AUD dollars, both can swap dollars with each other and it hardly matters as both had equal value. Whereas, with non-fungible tokens, both are unique like a baseball card and job certificate. Both cannot be exchanged with each other, making tokens non-fungible.
A non-fungible token (NFT) is a unique cryptographic token on the Ethereum network. NFTs are fully owned by their users and can be bought, sold, and traded peer-to-peer on a variety of open markets.
Here are the 6 unique aspects of NFTs that make it popular:
No# 1 Uniqueness
Each and every NFT is unique and has its own set of attributes and characteristics. It cannot be replicated again and again like a typical object should an individual chose to do so.
Should someone duplicate an NFT that particular asset will then cease to exist? It may have one or more interesting properties that are unique to that token, say an in-game weapon, an in-game character, a piece of land title, a vote/reputation points in a blockchain voting system or even your tweet.
NFT Collectibles are digital items that live on the blockchain. They can be as simple as a limited-edition sticker, as complicated as a virtual comic book character or as valuable as a diamond necklace. Our mission is to provide hundreds of millions of people
No# 2 Copyright
When the publisher sells the Mintable app, they offer the buyer complete commercial copyright to use that image and asset however they wish. The owner of the token has a complete commercial contract.
No# 3 Rarity
A non-Fungible Token (NFT) is a cryptocurrency that derives its value from an underlying, unique asset or item that is deemed rare by an issuer. A non-Fungible Token (NFT) is a new type of digital useable asset on the blockchain.
No# 4 Collectible
NFT items are collectable and you can hold them and their value goes up in price as there is no way to dilute the collection. You can buy them and then resell them and earn thousands of dollars. There are plenty of people who do it every day and earn a living from it.
No# 5 Immutable
Every NFT has unique metadata which separates each other. Nobody can remove its image or your name. That means no aspect of it can be changed.
No# 6 Eternity
NFTs once created, remain forever as the data doesn’t change. The reason is the blockchain on which it’s created is forever. You’ll always have the token if you buy it. And only you can sell it.
It’s very much similar to a bar of gold and you can do whatever you want to do.
Why NFTs Are Becoming Popular
Most people mistake it as a form of art, which is not true. It’s a token based on unique metadata.
Non-fungible Tokens are claimed to become the future of property rights. NFTs can be sold or bought, changing their ownership status. Artists can sell their artworks as NFTs and get royalty every time the NFT changes hands.
In the future, they can receive more income from NFTs than the artwork itself.
NFTs can also be used to reward loyal fans or even create music that is difficult to pirate.
Music files, in particular, are vulnerable to manipulation (you could play one beat over another, for example) and NFTs could prevent this in a big way.
NFT enthusiasts believe that it will not be able to download any music, book or artwork illegally going forward when NFT will become mainstream. People are not realizing this; this is certainly a future of copyright.
It’s not just obscure digital artists getting in on the act – a renewed interest in cryptocurrencies and a boom in digital art have thrust NFTs into mainstream consciousness.
It’s not just obscure digital artists getting in on the act – a renewed interest in NFT has been a natural outcome of the development of blockchain and rising popularity of digital art has generated a collective consciousness about Non-Fungible Tokens.
A group called Valuables.io auctioned for the first ever tweet from Twitter co-founder Jack Dorsey. The winner receives a certificate stating he is the first person to own the tweet.
However, there are also issues with this, and it may create a lot of issues instead of solving them. Original artwork may be tokenized without the knowledge of an artist.
And how a marketplace will guarantee to prevent such things don’t happen. They will just shrug-off their hands claiming they are just the marketplace app.
Anyway, technology throws interesting possibilities, and NFT’s look pretty exciting. It shows a glimpse of the future.