Also written as “Non-Fungible Tokens”, NFT is playing a gradually important role in our lives, mostly in digital art and its relevant transaction area. Just like other kinds of virtual currencies, NFTs can also be used to measure the value of a thing (usually a work of art). Many people take NFT as a form of Bitcoin, but they have slight differences. Compared with the main transaction and payment functions of other currencies, NFT is more used for identity confirmation, showing people’s ownership of works of art. It is more like the authenticity of ownership other than money.
What Is NFT?
Its official definition, according to Wikipedia, is Non-Fungible which makes it a unique identifier that is used to certify authenticity and ownership. “Unique” means it is the one and only thing recorded in the blockchain, and it cannot be copied, subdivided, changed, or substituted. This “unique” feature is a very important attribute of NFT, which distinguishes it from other types of currencies. It is not used for exchange but becomes a symbol of ownership. Therefore, it has also become a measure of some precious works of art, such as a building, a handicraft, and a precious painting that is the only one in the entire world.
It is easy nowadays to buy a piece of digital artwork at a reasonable price on the Internet, as well as get a unique token to prove the authenticity and authority of your own piece of artwork – unique, can be exchanged and of great value, NFT has become the digital answer to the currency of the art. Essentially, though it can be exchanged and of the exact value, unlike the normal cryptocurrencies that can be traded or exchanged, NFTs are different. An NFT does not always equal one dollar or one bitcoin, each NFT has a digital signature to make it unique and non-fungible, which makes it impossible to trade or exchange NFTs.
How Does NFT Work?
Once we get to know the features of NFT that are transparent, unchangeable, and of a certain value, it will be easy to know how it works. As technology develops, the ownership of digital artwork or collections has also become very important, and NFT is becoming a reliable way of recording. Unlike all other cryptocurrencies, NFTS cannot be listed, bought, or sold on centralized or decentralized exchanges.
In order to understand the work process more clearly, let’s bring blockchain technology in. If you are using an NFT to prove your ownership, your NFT will be stored on the blockchain. Like NFT, the blockchain also has features that can be publicly distributed and immutable, which makes every NFT can be stored publicly and allows anyone to check the authenticity of any tokens at any time. Every time you are creating or transferring an NFT, this operation will be permanently recorded and time-stamped on the exact blockchain, meaning it can be traced back to the origin of any individual NFT. NFT makes it possible to digitize physical assets. When the immutable feature of NFT combines with the features of transparent and hard-to-manipulate blockchain, NFT also helps further formalize the transactions of digital assets.
How To Applicate NFT In Our Daily Lives
1. Check the authenticity of the digital products
Due to the transparent and permanent nature of blockchain, NFT can be used to store the data during production, ensuring fair and clean trading throughout the whole process. It is also possible to check whether a product is real and unique by checking the NFT recorded on the blockchain.
2. Protect intellectual property rights and patents
The features of NFT can also help demonstrate the ownership of digital assets. Checking the timestamps on the blockchain can help the viewers identify the owner and review the change, since the NFT and the blockchain are unchangeable, people can always check the original owner, author, and the transaction record of the work.
3. Store the important information
As the NFT records in the blockchain are unchangeable and perpetual, every record is precise and will not be manipulated by people’s own purpose. This feature makes it possible to record important information such as medical records, private information, and certificates and maintain access to necessary visits. Some health insurance providers, hospitals, and other organizations are already studying how NFT and blockchains can help improve hospital operations by verifying patient identities and recording medical procedures without compromising patients’ privacy.
NFT – A Kind Of More Seen And Used Token
As a newly emerged technology, NFT has been coming into service since 2015, and it is a popular trend now. The reasons for the booming of NFT can be various, and the most believed one is that people are eager to standardize the development of virtual currencies and digital assets, according to the analysis of Natalie Warb, the financial expert of CouponBirds. She also said, “The features of real, unique, and unchangeable all make NFT become more and more important in modern transactions. Consumers all want the opportunities to have their own unique digital content and they will possibly hold it as an investment.”
Is NFT becoming mainstream in the future? The answer is a definite yes. The features of uniqueness, unchangeability, and rarity attract users. However, due to the limitations of technology and user awareness, it may take more time to promote NFT. If you are interested in NFT technology and the formalization of digital assets, finding NFT development services and seizing the opportunity can be a lucrative option. But always remember to be careful about it!
