Amidst the already-crazy crypto world, NFTs have arrived and rapidly took peoples' attention. NFT stands for Non-Fungible Token. People may argue that "Colored Coins" were the original NFTs back around 2012. Colored Coins were used to represent assets including access tokens, company shares, and the more popular (as we focus on today) digital collectibles. The utilization of Colored Coins tended to be highly flawed, as they were only as valuable as their weakest participant on the Bitcoin blockchain. Although they didn't last, I would say they planted the initial seeds for what NFTs have grown into today.
Let's fast forward to today and learn a little more about NFTs.
Present-day NFTs seem to be the new digital investment phenomenon, but why?
Why are people freaking out about them and what makes them so valuable? Basically, when you purchase an NFT, it's metaphorically equivalent to purchasing a piece of art or land in the digital world. NFTs come along with digital signatures to verify ownership of the piece and to state that it is an original work. This is done via blockchain transparency, which is highlighted in my other blog post found here on Publish0x.
Given that NFTs are non-fungible and cannot be replaced with another entity, this makes them extremely unique to the blockchain.
You essentially gain bragging rights to ownership of whatever NFT you choose, and the ability to post it online without anyone else's consent because, well, you own it. NFTs obviously allow you to support your favorite artist as well, and you get to protect its value. If you own an NFT and you want to trade it, you will have to trade it for something completely different. This is unlike Bitcoin, a fungible token, where you can trade a Bitcoin for a Bitcoin.
But will the value of NFTs hold up?
That all depends... on what though? The mainstream hype surrounding them? The volatility of the crypto market? I guess we will just have to wait and see. NFTs are a new market that have shined a beaming light into the public's eye. Although I am still trying to wrap my head around the hype myself, I sure do enjoy looking at different NFTs and seeing what they go for here on OpenSea.
"Beauty is in the eye of the beholder, or in this case, the blockchain." - Gongo
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