NFT stands for a non-fungible token, which means it can neither be replaced nor interchanged because it has unique properties...
NFTs are currently taking the digital art and collectables world by storm. When everyone worldwide believed Bitcoin as the digital answer to currency, NFTs are now pitched as the digital answer to collectibles.
Some Key Features:
- Digital Asset - NFT is a digital asset that represents internet collectibles like art, music, and games with an authentic certificate created by blockchain technology that underlies Cryptocurrency.
- Unique - It cannot be forged or otherwise manipulated.
- Exchange - NFT exchanges take place in cryptocurrencies such as WAXP on the WAX Marketplace.
How Does an NFT Work?
- NFTs are individual tokens that hold valuable information within them
- An NFTs unique data makes it easy to verify and validate their ownership and the transfer of tokens between owners
What Are NFTs Used For?
- Digital Content - The most significant use of NFTs today is in digital content. Content creators see their profits enhanced by NFTs, as they power a creator economy where creators have the ownership of their content over to the platforms they use to publicize it.
- Gaming Items - NFTs have seen a lot of interest from game developers. NFTs can provide a lot of benefits to the players. You can buy items for your game, and when you're done with that, you can recoup your money by selling them.
- Investment and Collaterals - Both NFT and DeFi (Decentralized Finance) share the same infrastructure. DeFi applications let you borrow money by using collateral. NFT and DeFi, both work together to explore using NFTs as collateral instead.
Overall, when someone buys the non-fungible token, they gain ownership of the content, but it can still make its way over the internet. In this way, an NFT can gain popularity — the more it’s seen online, the more value it develops. When the asset is sold, the original creator gets a % cut, with the platform getting a small percentage and the current owner getting the rest of that revenue. Thus, there is potential for ongoing revenue from popular digital assets as they are bought and sold over time.