To a large extent, NFT is still regarded as a speculative asset, a status symbol, or a completely absurd but transient trend. Admittedly, the current craze for digital art does not make us believe how valuable digital art is. But as technology matures and more things are built on it, signs of change are slowly emerging. It no longer serves only the arts.
NFT is all the rage. Many people may have encountered at least a few headlines or social media posts, and we may have to scroll back to read them twice. You know, stories about those virtual paintings, gifs, cartoons, tweets and rock photos that sell for millions.
But you may still want to know what makes virtual art worth that incredible price, especially when in theory, anything on the Internet can be easily copied and shared. This is because these fragments are actually NFT or irreplaceable tokens, which means that they are unique and cannot be copied.
NFT is essentially a digital representation of daily and real life items, and its authenticity, ownership and transaction records are registered on the blockchain. This technology makes it almost impossible for NFT's digital assets to be copied, edited or hacked.
Because all NFTs are:
Unique: There is always only one NFT for each digital item.
Non replaceable: cannot be exchanged with other tokens because they do not have the same value.
Scarcity: The value of NFTs depends on their rarity.
They provide a new and more effective way for the commercialization of digital assets, especially in industries where it is difficult to determine ownership or authenticity, such as luxury fashion. NFT technology has also opened up a new source of income, and may promote the rise of innovative digital products. Many industries have begun to tokenize assets, including sports highlights, music albums, iconic entertainment moments and souvenirs.
However, as NFT's sales continue to generate wider interest, people begin to question whether they are just a fashion and whether they have any long-term prospects. In short, just a few months ago, digital art may have started all this, but the rise of NFTs is rapidly accelerating elsewhere:
Fashion: Luxury brands began to use digital tokens to protect authenticity and ownership, while helping to solve an old problem - counterfeiting.
Music: With NFTs, it is easier to prove ownership of original content and track its use. The creators can rely on NFTs as a transparent monetization mechanism, especially in terms of royalties.
Patent and intellectual property protection: Tokenized authentication comes with inherent legal protection measures to protect the authenticity of documents and increase the transparency of processes.
Collections: Tokens provide a unique way to purchase unique digital collections, and have an absolute grasp of their source, making them a safe value investment for collectors.
Real estate: the national forest trading system can serve as a registry, which can establish clear property rights, making it easy to establish and transfer ownership
Games: NFTs allow the most important moments and memorabilia of sports to be marked and exchanged among fans, collectors and investors in the entire game industry
Virtual: users can monetize their works, including avatars and virtual land, and release their creativity in new ways
Perhaps NFT technology will enter daily life in the near future, such as shopping, blood donation or applying for bank loans. After all, from electricity to cars and mobile phones, we can't imagine today without these technologies, which were once suspected. NFT may be facing the same scrutiny as it tries to understand technologies outside the Digital Arts Association and stay away from the boom of Crypto Cat and Boring Ape Yacht Club.