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Why NFTs Are A Way In and A Way Out

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image source: Newsroom Post

NFTs are undoubtedly the new craze, and for good reasons too. Non-Fungible Tokens have successfully created an environment where artists and creators across the world can have positive, and valuable control over their work and earnings.

An NFT is a digital asset that embodies real-world objects like music, art and in-game items and videos. From allowing artists to monetize their creations to selling directly to customers with a fair percentage of resales, they seem to be a fascination worth banking on.

Why is this exciting?

The answer’s simple! It’s a form of creative freedom and empowerment. It gives artists accessibility and control, two things they crave to succeed. Non-fungible refers to being unique and irreplaceable. In a world where imitation is seen as a form of flattery and most organizations and systems make it hard for the average artist to thrive, NFTs are simply a way in and a way out.

Check out 5 interesting details about them:

1. Forgeries Don’t Exist 

Some experts predict that majority of the art available in the market is likely to be fake, and the chances of investing in counterfeit physical art are high. NFTs offer a solution by allowing artists to show provenance and establish a chain of ownership. How? NFTs exist on a blockchain which is a distributed public ledger that records transactions.

2. Smart Contracts Allow For Almost Anything to Be Converted Into NFTs

Anything digital can become an NFT. Typically, conversations always project the selling of digital art and collectables, but the flexibility of technology means almost anything can be tokenized. Whether it’s domain names, in-game assets, tweets or songs, they can all be linked to a smart contract, establishing proof of ownership.

3. They Help Artists Grow and Reach New Audiences

Taking the art and digital worlds by storm, NFTs are making grand moves in a sector previously occupied exclusively by traditional investors. Marketplaces like OpenSea, Nifty Gateway, and SuperRare allow aspiring artists to get discovered by reputable investors. According to research, “with over 1.4 million daily unique users and over $1.2 billion in sales in July of 2021 alone, the market is bursting with opportunity”.

4. Listing NFTs is Associated with Minting

Minting is how an artwork, collectable, song, video, domain, or any other asset is imprinted in a blockchain. It is termed after the conventional method of producing coinage and projects assets on the Ethereum network for it to be listed on marketplaces or traded with others.

5. NFTs are truly unique

In contrast to cryptocurrencies like Bitcoin, NFTs are all unique. Routinely using the Ethereum token standard of ERC-721, NFTs are a verifiably unique asset that is worth as much as someone’s ready to pay for it.

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