Contest "NFT"

Show your knowledge freely about NFT.

From the general analysis of the introduced subject Non-Fungible Tokens (NFTs) have become quite popular in the digital world and changed the perception of the digital assets. An NFT is a digital token that uses a blockchain to prove that it and the connected asset are the only ones of their kind. It should also be noted that unlike Bitcoin or Ethereum, which are Homogenous in nature and can be traded one for the other, NFTs are heterogeneous and unique.

Source

NFT is increasingly famous because it offers the assurance of ownership and originality of objects of digital commodities such as arts, music, videos, virtual real estate, and collectibles among others. Due to the rarity and novelty of NFTs, they attract multiple parties such as collectors, investors, and creators.

One component is unalterability and openness since NFTs are logged on the blockchain, mainly the Ethereum blockchain using accreditations of smart contracts. This way, ownership and transaction records are safely preserved and easily authenticated, thus protecting against forgery and piracy.

The creating of NFTs or purchasing from others entails minting and this is a process of tokenizing an asset to develop an NFT. Authors sell their creations in an NFT market by uploading their digital assets to the NFT market and getting a token that corresponds to the piece of content in question. The consumers can then, use cryptocurrency to bid to own the NFTs or directly purchase them.

Pixabay
Some of the drawbacks that have been observed regarding to NFTs include the effect on the environment, by the process of minting and selling of these NFTs in blockchain platforms. Also, there are risks associated with the violation of copyrights and trademarks rights, rights in Relation to the ownership of NFTs, and the subjectivity of NFT market.

It is for these reasons together with controversies and extremity of market fluctuations that NFTs are considered to have revolutionized many dominant industries and opened new prospects in a digital economy. From an artist’s perspective, NFTs provide an opportunity to make money on art, whereas for a collector – an opportunity to own fully unique digital assets, and for an investor – it is a relatively unexplored market in the form of art-platforms where value is traded.

Thanks for reading i invite @ability20, @abdullahw2 and @emmy01 to participate in this contest.

Cc:
@khursheedanwar