- NFTs are designed in the blockchain space to facilitate ownership of the work to a buyer
- NFTs can be exchanged or traded for one another, unlike other cryptos
- Digital art is converted into tamper-proof NFTs through the process of minting
In technical terms, NFTs (non-fungible tokens) are units of data that are recorded and stored on a digital ledger. Blockchain is a digital ledger that works within the framework of a decentralized system. The mechanism of blockchain certifies the digit asset linked with NFT to be unique and interchangeable.
Ownership Of Digital Art Through NFTs
NFT can hold its value because of its distinctive nature. Each NFT is unique and discrete, being a part of the same Ethereum blockchain. NFT can be traded for art. The framework of the NFTs has been designed to portray something that can’t be copied or counterfeited.
An NFT buyer can acquire ownership of the work exclusively. However, the artist can still retain the copyright of that artwork, basically just as things work in the physical artwork space. NFT has been adopted in a wholesome way into the world of art, inclusive of different domains such as music, graphics and the movie industry.
There has been a flood of digital art in NFT marketplaces since its boom. NFTs are generally operated on the blockchain to give proof of ownership to the owner. NFTs are different from cryptocurrencies in one way or another. NFTs, unlike cryptos, can’t be exchanged for one another.Â
Use Of NFT Tokens In Various Domains
NFTs might be an emerging space but their popularity is on the rise and their capital is exponentially growing. The association and link of NFTs with art is quite significant and can often be labyrinthine for some people. There are various types of NFTs.
Artwork NFTs are probably the most popular. It is the most prominent digital avenue where most digital artists trade digital art. One of the most expensive NFTs ever traded goes by the name of ‘Beeple’s Everydays: The First 5000 Days’.
One of the most lucrative NFTs that is generally demanded by traditional collectors is collectibles. CryptoKitties is the best example of a digital collectible. Any event ticket can also be easily tokenized in the form of NFTs. Various event managers have made use of NFTs to sell tickets.
Another domain where the utility of NFTs has rapidly spread is gaming. Several game developers have adopted NFTs to monetize in-game assets. This tokenization of gaming assets like digital swords, shields, armor, ammunition and other collectibles has enabled the transfer of tokens between players.
Conclusion
The NFT market is supposed to grow further as it gives users the perk of experiencing ownership of intangible digital assets. The success of NFTs depends on the success of the ecosystem along with them. NFTs are being widely adopted in various domains and are going to play a pivotal role in the Web3 landscape.
