What’s the big deal with NFTs?
NFTs are often criticized for having no value. But is that really true and can they
actually add value to humanity’s better future?
Non-fungible tokens, as the name suggests, are tokens that cannot be replaced by other tokens in their network. In other words, they are non-fungible because they each have unique properties, characteristics, and histories that make them impossible to replace with other tokens on the blockchain's platform.
NFTs include a whole lot of extremely genius technology wrapped around things like crypto kitties, crypto punks, and crypto Trumps - but this technology can be applied in all sorts of situations, including supply chain management and verification of university diplomas. And that’s just the beginning.
What else can they do?
The true potential of NFTs lies in their ability to fractionalize property and collectibles. That basically means now people who couldn’t afford access...basically now everyone can have nice things.
Next comes authenticity. For example, let us say you own a piece of digital art. Then you could sell that artwork as an NFT. Since it is stored on the blockchain, the new owner can prove that they own the artwork and no-one can take it away from them.
Also, because NFTs can be bought and sold like any other asset, they have the potential to create a more efficient market for digital goods. For example, if you own an NFT that you no longer need, you can easily sell it on a marketplace like OpenSea, which so far made a lot of people a lot of millions because they understood how NFTs work on a deep level and used that knowledge to trade, create, sell, and so on. For example, here's a story aptly named “Here’s how a 22-year-old made $1 million by selling NFT selfies”.
This creates many, many opportunities for everyone from diamond dealers (where, as you can imagine, authenticity is very important) to artists who are suddenly exposed to a whole world of customers, not just their local audience. These customers can pay them directly, without involving middlemen who charge them extortionate prices for not really doing much in the process.
A whole world of opportunities is opening up for everyone with this brilliant new tech, with Split features, the ability to transfer revenue to anonymous accounts on the blockchain, smart contracts that make everything a whole lot easier... if you can think it, someone is probably already working on making it a reality in the crypto space.
NFTs even lower the barrier for people who want to get into crypto trading and have no starting capital. Today it is enough to buy cheap NFTs and wait for them to rise in price. The only trick is to make an intelligent choice.
Artessere is delighted to provide you with all the information you need to figure out which NFTs to invest in, what makes NFTs and art pieces good and bad, and give you an actual way to try your hand on the real thing. Check out our ArtChips here!