A non-fungible token (NFT) is a non-interchangeable electronic unit of data on the blockchain that is stored and traded as a digital ledger or crypto asset. Usually applicable in the Metaverse, NFTs utilize digital files such as photos, audio, and videos, while anything digital from drawings to possibly your brain is downloaded and converted into an Artificial Intelligence (AI). In addition, this digital ledger also underpins cryptocurrency and differs from blockchain cryptocurrencies. Furthermore, NFT ledgers provide certificates of authenticity and proof of ownership for digital artists, which allows them to sign their work to ensure that there is no copyright and that their artwork is not stolen. Non-fungible means that NFTs cannot be traded or replaced because they are validated using blockchain technology. The above mentioned topics paint a good picture on how far we are with the evolution of the internet.
What do NFTs do for the Art Market?
NFTs can convert digital artworks to real-world assets. In addition, the longer these digital artworks stay on the blockchain, the more difficult it is for hackers to steal or duplicate artwork. The impact NFTs have on the marketplace also allows artists to monetize their artwork and initiate higher empowerment of attainable art with the inception of NFTs that help liberate a life-improving and innovative effect on the art world and the internet today.
Moreover, NFTs are essential digital art identifiers that keep individual art pieces unique and ultimately gain immense value through the traditional art world. In addition, digital art is gaining momentum in becoming secured with viable mediums of NFTs. In light of this, a stream of crypto space is encouraging a higher demand for artwork on digital platforms and marketplaces.
Are NFTs a Good Investment?
NFTs are predicted to hold a more excellent value in the future with utility and real estate contracts. In addition, NFTs are managed the same as cryptocurrency exchange mobile currencies such as Coinbase Global NFT, Binance NFT, or Foundation NFT. You can also look at NFT stocks to buy on the stock market, consisting of coins that can be held in your app wallet. However, NFTs are not like regular stocks or bonds where you know the investment's intrinsic value but rather by a market value that the crypto community is willing to pay for.
NFT Supported Blockchain Platforms/Marketplaces
As commonly known, NFTs are digital assets like collectables, virtual assets, or art used to represent real-world items that can be sold on blockchain platforms and marketplaces. These platforms and marketplaces, such as Ethereum, Open Sea NFT, and Rarible, come with their digital signature that designates ownership of each NFT asset. In addition, with the internet’s influence on modern society, NFT marketplaces put you on the right track to investing in tokens that cannot be stolen or replicated which reduces the probability of fraud. Accordingly, there are a few other popular platforms and marketplaces you can buy NFTs on, such as the following:
- Coinbase NFT
- Binance NFT
- Zora NFT
- Axie Infinity