NFTs, or non-fungible tokens, can sell for pennies, or they can sell for $532 million. It’s no wonder they’re such a massive phenomenon when they can command values like that. It’s no wonder they’re so shrouded in mystery when they can go for a few bucks instead.
So what are the benefits of investing in NFTs? How do you pick winners from losers? And do they have value besides their potential monetary returns?
Your confusion ends here! Read further to find out everything there is to know about NFTs, blockchain technology, and what sets them apart from traditional investments.
Non-fungible Tokens Are Super Secure
Back in the old days, your ownership of property would have to be secured by a paper deed. You could store it in a bank vault, but it could still be stolen, destroyed, or simply rot away.
These days, your ownership of stuff is more likely to be recorded in a centralized digital database. Much better! Except they can be hacked, suffer failures, or end up overwritten through negligence.
But your ownership of an NFT is recorded on a decentralized distributed ledger technology spread across thousands upon thousands of computers. No one can sneak in and alter or destroy it because it’s spread out so much and cryptographically verified.
NFTs Are at the Forefront of the New Creative Economy
Once upon a time, digital artists without a contract with a big company were in a tight spot. You could operate on commission, drawing people’s requested designs in return for money, but that only made so much. Worse, it meant you couldn’t create the art you wanted to make and sell it afterward.
After all, the second it was out on the internet, it pretty much belonged to anyone who saved it.
NFTs fix that by creating an indelible record of the ownership of digital art. Digital artists can create the pieces they want to make, then use blockchain technology to mint non-fungible tokens and sell them off as NFTs!
NFTs Are Re-Sellable
Tired of your NFTs? Just not feeling it anymore? No big deal! Sell them the same way you bought them: via an NFT exchange (learn more here).
Unlike the digital artwork of the past, where ownership was a far more nebulous concept, NFTs let you commodify your possession of digital art. That means the ability to sell your NFTs second-hand and recoup some of your investment (or even make a profit).
If I Could Rearrange the Alphabet, I’d Put NFT Together
NFTs are a fascinating and exciting new technology that’s reconfiguring the entire art industry. And now you know all about them! If you’re only curious or you’re looking to amass a collection of digital art, this guide will help you take your first steps into the wild world of non-fungible tokens.
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