Commonly referred to as NFTs, non-fungible tokens represent tokenized certificates of ownership of non-fungible assets, digital or otherwise. Non-fungible assets have unique properties and attributes that make them rare, valuable, unique, and irreplaceable with something else. These assets can range from virtual collectibles, game items, and digital artwork, to concert tickets, real estate, identity documents, and many more. The current crypto market revolves heavily around fungible assets like Bitcoin and other cryptocurrencies but with the introduction of non-fungibility, come many benefits.
Benefits of NFTs:
NFTs are strongly gaining traction and their rise in popularity is opening a wide range of possibilities for real-world and virtual assets. Namely, NFTs offer the ability to take part in a new way of monetizing the internet with digital collectibles. Since practically any digital entity can be represented as an NFT, it can be used for a wide variety of purposes. This includes actual ownership of songs, GIFs, films and movies, photos, digital artwork, news articles, game assets, and even tweets.
NFTs can also be tied to physical (off-chain) assets and can serve as a way to verify the authenticity and track the sales history of fine art or luxury items. In any case, the non-fungible token is backed by a social contract from its creator and a surrounding community.
Tickets, passes, and documents can now be turned into NFTs to ensure the originality and authenticity of information they store or carry.
Current NFT use cases are concentrated in the main categories of collectibles, art, gaming, and virtual worlds. But other categories like sports, fashion, and real-world assets are steadily developing.
NFTs Use cases:
|Proof of ownership – The digital tokens can be thought of as certificates of ownership for virtual or physical assets;|
|Actual ownership of virtual assets – This allows gamers to actually own their in-game assets; fans to own songs, tweets and creators to sell their GIFs, artwork and articles;|
|Fractional ownership – If one can afford a whole artwork, NFTs allow partial ownership;|
|Hold, deny, restrict rights – By being the owner of assets you have certain rights;|
|Ensure exclusivity – Non-fungible means one of a kind;|
|Easier verification of originality and scarcity of information – Everything is transparent and easy to check.|