"NFT" has become perhaps the most famous of all the terms connected to the Blockchain space, through hype and controversy. But what exactly are NFTs, and should you believe all that is said about them?
WHAT IS AN NFT?
How does an NFT guarantee non fungibility? Each NFT is substantially a digital thumbprint on the blockchain, through a particular Smart Contract (see our article about them to know more) that dictates its existence conditions. This already virtually uncrackable (if compiled correctly) contract is stored on the Blockchain. You can give any form you wish to an NFT; It can be a drawing, a photo, a concert ticket or QR code, : any type of file which needs to be recognized as original and limited without doubt. As mentioned above, an NFT remains such only if stored on a decentralized Blockchain; external servers are centralized, and your “NFT” will disappear as soon as the plug is pulled.
SECTOR GROWTH AND NEW HORIZONS
The sector has seen an incredible spike in usage and popularity, as well as the rise of a mostly negative perception of the term NFT.
The main problem NFTs are facing right now is their mainstream perception; because of their strict association to digital art, many people view them as “Glorified JPEGs”, and not many that actually can elaborate on their possible use cases regarding democratization and future ownership are getting as much of a platform as many useless projects.
Adoption rates are still low, and the true potential of NFTs lies in the certification of digital ownership, and the capacity of producing any commercial product potentially without a middle man. Music, Art, Licenses and Documents will all see plenty of adoption and implementation in the future.
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