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NFT, which is an “irreplaceable” cryptographic tool that can be used to tokenize “unique digital items.” But unlike cryptocurrencies such as bitcoin or utility tokens – being irreplaceable means that NFTs are not interchangeable with each other, thus proving the scarcity of projects and giving them inherent value.
In the real world, where people exchange things like art and collectibles through physical exchanges, galleries and brokers. The concept of “digital ownership” is much more like an ambiguous concept than that of “physical ownership,” there is a lack of trading platform in the digital world.
NFT is a very effective solution for enabling individuals to verifiably “own” objects such as digital art on the Internet, while also enabling the exchange of its value. Through standardised “digital goods”, NFT could also exchange digital works on a public blockchain, thus addressing issues such as inefficiencies on traditional digital trading platforms. Some people think it is difficult for supporters to explain NFTs because NFTs is not a single concept. They are bundles of related concepts.
Digital art and collectibles are currently the two most important cases for NFT, where creators can tokenize and sign their digital art and then sell it as NFT in the marketplace. Digital art collectors can purchase and exchange these works on NFT trading platforms such as OpenSea, SuperRare and Rarible. In the field of cryptocurrency, a relatively active digital art community has now formed. NBA Top Shot, the NBA-licensed digital collectibles market, has sold more than $280 million in recent months.
Prior to the explosion of NFT trading platforms, most digital products lacked effective means of exchange. Moving Non-Fungible Assets from one user to another often involves problems such as having to use third-party services, escrow accounts, complicated payment channels, and complex transfers, making it difficult to realize the potential of the digital goods market.