Before talking about NFTs and their use cases, let’s first understand some terms in their simplest form. Fungible means it is replaceable by something similar. In contrast, non-fungible implies uniqueness and cannot be interchangeable under any circumstances.
What are non-fungible tokens?
Non-Fungible Tokens (NFTs) are digital certificates that prove ownership of digital assets, goods, tangible and intangible items, such as videos, arts, paintings, postcards, virtual real estate, and more. They have usage across several industries because of their unique characteristics, as stated below:
Characteristics of NFTs:
- Rare: Presently, the total number of NFTs is scarce, making them rare and improving their value.
- Non-interoperable: Typically, this means the information stored in NFTs cannot be used or exchanged in any way.
- Indestructible: NFTs are held and managed via blockchain and thus cannot be removed or destroyed at any cost while offering a greater level of security.
- Unique – NFTs cannot be destroyed or equated with a common asset. Each NFT has distinguishable information that makes it different from other NFTs. This feature makes the authenticity of a collectible easier.
Use cases of NFTs
NFTs are popular in the following sectors:
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Art | Gaming | Fashion and wearables – Luxury brands are coming to the NFT space | Events and ticketing | Virtual land | Digital identity | Music | Finance | Collectible | Real-world assets | Logistics
In closing, the wide acceptance of NFTs is undoubtedly here to stay. They are distinct with signatures, indivisible, non-interchangeable, and more unique. Furthermore, statistics revealed that NFTs certainly have a long road ahead in their future, and their use cases would only increase in time.