Blockchains: Where the NFTs Are
Most people still do not know what an NFT, or a non-fungible token, is. Certainly, the public-at-large does not understand the vast capabilities that NFTs have to change the digital world. At their essence, non-fungible tokens are unique digital assets that are stored on a blockchain. The blockchain itself acts like a public-ledger, and anyone can view the public-ledger to see all the transactions that have occurred on the blockchain. The blockchain is both immutable and hacker-proof. Indeed, the ability to have a public-ledger that is secured and encrypted allows for innovation and scalability.
Why NFTs Have Value Beyond the Art
Non-fungible tokens are more than just art. It is the capabilities NFTs have – regardless of the underlying artwork – that makes non-fungible tokens valuable.
What is so innovative about the capabilities of non-fungible tokens?
First, NFTs provide the creator with the ability to create digital scarcity. Meaning, before the creation of these tokens, there was no cognizable way of creating scarcity in a digital world. Now, with the creation of non-fungible tokens, owning something digital is possible. Indeed, one-of-a-kind digital collectibles such as digital art, collectible items, or virtual real estate, can be bought, sold, and owned just like physical assets. Futher, the supply/demand paradigm that exists in the real world, now exists in the digital world thanks to non-fungible tokens.
Second, non-fungible tokens are valuable because they provide proof-of- ownership. Because non-fungible tokens are stored on a blockchain, their ownership can be easily tracked and verified. This allows for the creation of a transparent and secure market for digital assets, which in turn increases their value.
Third, non-fungible tokens are unique. One of the key reasons for the value of NFTs is their rarity and uniqueness. Indeed, each non-fungible token is unique and cannot be replicated or replaced. At their essence, non-fungible tokens are one-of-a-kind digital assets. This allows for the creation of a limited supply of valuable digital items.
The Monetization of Digital Content
NFTs also provide creators a new way to monetize their digital content. Creators can now sell their digital art, music, videos, and other content as non-fungible tokens, which allows them to earn money from their creations in a new way. Moreover, non-fungible tokens allow for ongoing royalties. Ongoing royalties allow for creators to obtain a royalty for all secondary sales.
And We Thank You for a Real Good Time!
Thank you for reading our blog post. Continue to check us out for more information and resources on all things NFTs! We have tons of updates on the non-fungible token market, as well as our own NFT project, Awk Monks! Also, don’t forget to check out The Ultimate NFT Monkey Guide for all things NFT Monkey related. It’s a great resource – rich in information.