NFTs are digital Certificates that authenticate a claim of ownership of some asset and allow it to be sold or transferred at cost. Just like ownership papers of physical Goods, lands, art, etc. These are digital Certificates and are secured by blockchain technology, the same that powers cryptocurrencies. Blockchains peer-to-peer technology makes it nearly impossible to tamper with these certificates.
NFTs are non fungible that is they can’t be created by anyone but issued to an individual to claim his/her ownership. However, bitcoin can be mined by anyone and exchanged for other coins. This is where things get interesting, too many copies of digital assets exists but authentic copies are always valued more. Just like it is with Art.
Why NFTs are important?
Internet is all about sharing content. People of different origin remix content from different people to create their own creative authentic content. But NFTs are aimed at not allowing anyone to use the original content without owner’s permission. The new thing is that now anyone can purchase digital assets. Up until now there was no safe way to buy digital assets like music, videos, JPG, designs, animations and other things.
But with NFTs you can create an Art auction online. And trade NFTs for your digital images. What NFTs will do is open more ways to earn for creators. Struggling creatives will benefit from this the most. But its all just hallucination. I mean you can get any image on the internet, introduce your creativity and make it your authentic creation. But if you don’t own the NFTs for that image then you can’t convince the buyer that this is more authentic that the other.
This is not for the Common man. NFTs are revolutionary for passionate collectors. Just like art exhibitions aren’t for the common man. And Passionate collectors just care about authenticity. That’s why I am keeping my 2 Years old watch in good shape so, that I can sell it after 50 years for some good price 😂. Anyway, let me know in the comments what you think about how NFTs will change the Internet.