NFT- Digital Ownership for the Digital Era
Hello readers, meet
our friend Robert!
Robert is an
enthusiastic painter and wants to showcase his digital artworks in an online
exhibition. However, as the exhibition is online,
he is quite worried as he thinks that his paintings won't be secure online.
His friend, Mark, suggested that Robert
could buy NFTs for all his paintings.
Robert had no idea what NFTs were so let’s go and explained it to him…..
In simple words, NFTs
provide digital ownership.
NFTs stand for Non-Fungible
Tokens. NFTs turn your digital assets into “ONE OF A KIND” by creating a unique
digital signature which defines the ownership of your assets .This can be bought and sold for real money, crypto-currency
or any other asset like a non-fungible token (NFT).
Non-fungible tokens mean that are not interchangeable and each of them represents unique assets
owned by a specific person. On the other hand, fungible tokens are interchangeable
and can be divided into smaller units to form the same value for example, a hundred-dollar
bill is fungible as you can exchange it with five 20-dollar bills or two 50-dollar
bills, but the painting is non-fungible as it cannot be generated in bulk even
if it is copied it will not be authentic.
Each NFT contains a unique information like who owns the digital asset and
who sold it making them distinct and easily verifiable as it is impossible to
forge such a certificate, this will secure his painting's originality.
But, Robert is still in two minds about the safety of NFTs. Let’s
explain the actual working of NFTs
to him….
NFT basically creates a block
chain-based digital certificate for your digital collectibles including
games, music, art and many more, this certificate gives your artwork a unique identity.
The underlying technology and the programming language used by NFTs are the
same as other crypto currencies on block chain and the programming language eth-hash
or scrypt.
Ownership -
An NFT can only have one owner at a
time. Ownership is managed through the unique ID and metadata that no other
token can replicate. NFTs are minted through smart contracts that assign
ownership and manage the transferability of the NFTs. When someone creates or
mints an NFT, they execute code stored in smart contracts that conform to
different standards, such as ERC-721. This information is added to the block
chain where the NFT is being managed. The minting process, from a high level,
has the following steps that it goes through:
- Creating a new block
- Validating information
- Recording information into
the block chain
Special features of NFTs-
- Each token minted has a unique identifier that
is directly linked to one Ethereum address.
- They're not directly interchangeable with
other tokens 1:1. For example 1 ETH is exactly the same as another ETH.
This isn't the case with NFTs.
- Each token has an owner and this information
is easily verifiable.
- They live on Ethereum and can be bought and
sold on any Ethereum-based NFT market.
Common usages of
NFTs-
Maximising earnings
for creators
The biggest use of
NFTs today is in the digital content realm. That's because that industry today
is broken. Content creators see their profits and earning potential swallowed
by platforms.
An artist publishing work on a social
network makes money for the platform who sell ads to the artists followers.
They get exposure in return, but exposure doesn't pay the bills.NFTs power a
new creator economy where creators don't hand ownership of their content over
to the platforms, they use to publicize it. Ownership is baked into the content
itself.
When they sell their content, funds
go directly to them. If the new owner, then sells the NFT, the original creator
can even automatically receive royalties. This is guaranteed every time it's
sold because the creator's address is part of the token's metadata – metadata
which can't be modified.
The copy/paste
problem
Ultimately owning the real thing is
as valuable as the market makes it. The more a piece of content is
screen-grabbed, shared, and generally used the more value it gains.
Owning the verifiably real thing will
always have more value than not.
Thus, as we,
globally, are moving towards a highly techno-savvy world, the importance and
need of NFTs is increasing exponentially. In the coming years, with the advent
of Metaverse, NFTs guarantee a safe way of presenting information online.
Robert is
absolutely convinced now! He’ll be presenting his paintings online and using
NFTs to safeguard them.
https://www.hongkiat.com/blog/nft-use-cases/
https://www.analyticsinsight.net/top-10-nft-use-cases-and-ideas-that-should-go-mainstream/
https://ideausher.com/uncategorized-en/what-is-the-future-of-nft-tokens/
https://www.shellypalmer.com/2021/12/top-4-uses-for-nfts/
https://www.livemint.com/technology/nfts-much-hyped-but-how-do-they-work-11639884308143.html
NOTE:-
This blog is meant for Educational Purpose only .We do not own any Copyrights related to images and information , all the rights goes to their respective owners . The sole purpose of this blog is to Educate, Inspire, Empower and to create awareness in the viewers. The usage is non-commercial(Not For Profit) and we do not make any money from it.
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