Digital assets have ushered in an era of decentralized digital authentication.
Non-Fungible Tokens (NFT) are cryptocurrency tokens that cannot be reproduced. They are unique, just like trading cards.
You can trade a BTC for another BTC, same for ETH, MATIC, etc. The crypto you get has the same value.
But NFTs are unique and do not carry the same value as others.
An NFT can be used to back any reproducible piece of data, for instance, images, videos, sound, etc.
Since an NFT is unique, it helps in authentication. On a blockchain, it can be checked which wallet or address it belongs to. Moreover, the same principle can be used for authentication purposes as well.
Say, an image is backed by an NFT. Whoever has that NFT in their wallet is the real owner of the image. The NFT as a crypto asset does not have any value in itself. The piece of data it represents has the true value along with the proof of authenticity and ownership.
Today, artists can also freely produce artworks without the fear of losing their intellectual property. NFTs provide proof of ownership and also help monetize the art.
This has made the Metaverse possible. Today, people are buying real estate in video games, and the proof of ownership is the NFTs backing the purchase.
In the metal market, the hallmark is an identifier that certifies the purity of a respective metal. Who knows NFT might replace it one day?
What other use of NFTs can you think about? Comment below.
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