A Non-fungible token or NFT is the digital style of curation and selling collectibles where the original asset remains with the creator. You can mint the NFT to be owned and sold for profit to a larger community. Still, the digitized cast is put up for sale with certain conditions attached.
NFTs Are Non-Fungible And Unique Investment Opportunities
The minting process of the NFT creates a cryptographic token on a blockchain ledger with a description of the ownership and a wallet for crypto-transactional purposes. Unlike fungible or tradeable cryptocurrencies and fiat money, NFTs are non-fungible because each NFT is unique and has intrinsic value that’s incomparable to any other asset.
NFTs can generate hype and potentially create a multimillion-dollar market because they are scarce. A famous example is Twitter co-founder Jack Dorsey who minted and sold an NFT of his first-ever Tweet, raking in a cool $2.9 million. With an NFT in your wallet, nobody can dispute your bragging rights on the original asset.
An Organic Connection Helps NFTs Grow With The Metaverse
According to cryptocurrency experts at the leading LATAM crypto exchange Trubit, the evolution of NFTs is connected to the explosive growth of the metaverse. Blockchain gaming has grown exponentially, and social media users gravitate from real-life to virtual avatars. It’s now possible to own “Real estate” in metaverse using “Land” tokens. NFTs are becoming a currency with exclusive access.
NFT allows artists and content creators to gain more control over their work. The creator no longer depends on professionals or expensive curators, museums, and galleries to sell prized possessions. The digitized NFT avatar of an asset opens a whole new world of financial opportunities to art creators.
The Blockchain Inspired Smart Contract Secures The NFT
It’s important to understand that merely buying an NFT does not automatically transfer copyrights and trademarks of the original work to you. Buyers are bound to the rights and obligations specified in the blockchain smart contract.
The NFT protocol works like this. The content creator or artist uploads the original work to the blockchain. The blockchain records ownership details. The NFT exchange mints the NFT to be traded. If the original artist is genuine and the foundry is authorized, the buyer will acquire the rights related to the NFT.
The risk of intellectual property infringement comes into play only if there’s reason to doubt the proof of ownership of the asset or if the minter of the NFT is unauthorized.
Remember that there are three parties that matter in the NFT process. The content creator is responsible for the original work of art. Then, there’s the exchange or blockchain platform that mints the NFT, and lastly, the buyer of the NFT.
Artists and arthouses struggle with fake reproductions of the original and fraudulent deals in the real world. An NFT or digitized cast of an asset makes a difference because blockchain technology makes orchestrating fraud in the digital world exceedingly complicated or near impossible.
Etching the NFT in blockchain creates an immutable record of asset ownership tied to a cryptocurrency. Unlike the banking institution, which transacts in fiat currency, the blockchain with its cryptocurrency linkage is completely decentralized and is beyond third-party manipulation, alteration, and misuse.
Is NFT A Convincing Investment Option? Is It OK To Buy An NFT?
In the case of commodities and stock prices, technical parameters and economic indicators drive investor demand. In the case of NFTs, even if the creator of the asset assigns a certain value, the collectible may sell for a lot less (or more) because it’s the buyer’s assessment of value, willingness to pay, and capacity to deliver the deal that drives NFT demand.
The canny investor needs expert guidance on protecting and enhancing the value of NFT assets. It’s best to take the services of professional blockchain development companies that will do the research and help you understand the risks involved to proceed with a healthy dose of caution before making the investment plunge.
The Bottom Line
The NFT isn’t a fad disappearing in the shadows of a retreating pandemic. The shocking fragility of physical art is making its digitized NFT version exceedingly attractive. Otherwise, major art curators like Christie’s, Phillips, and Portion wouldn’t be interested in auctioning NFTs minted on prominent blockchain platforms.
Imagine this. Long after you physically cease to exist, your masterpieces will live on as digital art adorning electronic screens, residing safely in the coding complexity of encrypted blockchain ledgers, leaving you and your assignees some cash to spare.