I tried to explain what NFT is in comic strips.
I explained what NFT is and how NFT works.
NFT is a Non-Fungible Token. It is a digital asset that is indivisible. Unlike cryptocurrency, which is a fungible token with indivisible amounts, NFTs are unique on their own. The idea was to create something that is digital unique without possible forgery, which makes them one of a kind. That means each NFT is unique on its own, and nothing will be alike. It creates a possible way of proof of digital ownership through NFT. It then went viral, and some valuation of NFTs skyrocketed.
Value of NFT
As all valuations in cryptocurrency are speculative, NFT’s valuation is extremely speculative. Due to its unique characteristic, NFT is limited in its supply, making its valuation more speculative. Also, people use NFT to value speculative assets such as artworks. As artworks’ valuation is highly subjective, NFT arts are even more subjective than ever.
NFT is a piece of technology that works beyond its valuation. There are more than ten use cases that NFT can implement and make it one of the futures possible through blockchain technology.
The idea of NFT originated from baseball cards. They are collectible objects that people possess one day to be as high as possible. They can be traded. Some of the cards are rare and hard to collect. Gaming is exactly operated toward such operations. Some gaming objects are harder to obtain, which makes them more valuable. The NFT of gaming makes gaming objects possible to get into the digital assets and trade between gamers. It boosts the game valuation and provides a viable income for users to play within the platform.
When DeFi meets with NFTs, they can make a great team together to gain financial benefits through collateral for a loan. When NFTs are more valuable, they can become collateral for financial firms to leverage their assets with a stream of cash to invest more on different aspects of their investment portfolios.
If you hate to be exploited from the high price of tickets you want to attend, NFT can ease that price if possible for bad guys to buy low and sell high to push the price purposely. In addition, it makes tickets more accessible. Also, owning an NFT ticket can be an ownership approval that you obtain such a ticket can preserve as long as possible in the future.
NFT can help promote events and become a pass to verify your ownership. In addition, it can become a shareholder of such events into the future that you can share with fans and give you exclusive membership for the future events.
One day, you may probably own virtual land and hold a party that invites all your virtual friends to join in your virtual house. As a result, virtual real estate is booming. Like real estate in physical form, virtual real estate can be collectible for people who live in the virtual world someday.
NFT can be an identification form in the digital world. Because NFT cannot be duplicated, it is secure on its own and unique. Ethereum Name Services or ENS is one such idea for practical usage. It is a website that links to your digital identity so that people can verify your digital footprints through such sites.
Digital arts can be easily duplicated on the website. NFT can change that since it proves its uniqueness. Artists can generate their own art with their own identity to fight for copyrights.
Similar to the science field, your paper may likely be plagiarized from others. NFT can help prevent such plagiarism and protect your paper’s integrity.
Think about a possible future where all your records are NFTs, one can use such NFTs to prevent your data and privacy leakage to corporations who try to steal your information and sell to others.
What if your vote is an NFT that allows only you to access the voting booth and vote through your name? It is possible that the NFT can help the voting process be more transparent and prevent voting fraud.
There is more and more usage of NFTs, and there are possible ways that NFTs can help improve our current system.
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