There is a lot of excitement, confusion, mystery, and even FUD when it comes to NFTs. Most people have never heard of them, but once exposed to the simple concept don’t feel like it will be more than a quickly passing crypto fad. I see it very differently for a few reasons, mostly their nature of being incredibly useful. Let’s talk more about NFTs!
What is an NFT
NFT stands for Non-Fungible Token. Fungible means there can be many of the same thing and they are all inter-changeable, indistinguishable, and are of equal value. NFTs being “non-fungible” are not that way. They are crypto units written (minted) on a blockchain and are each specifically identifiable with the metadata (individual characteristics) provided upon minting. These bits of identifiable information can never be changed and create a scenario where each individual NFT minted has only one set of unique identifiers, even if that uniqueness is only it’s specific place on the blockchain. This makes each NFT rare and traceable. In essence, the “non-fungible” aspect of NFTs is what gives me peace of mind when buying something I want to make sure is authentic.
How I got involved
My first exposure to purchasing NFTs came from my desire to support a project I was in. I was curious enough about them and excited enough about the collections that I dove in! There were several NFT artists listed, and I saw how people were trading them making great money. At that point I needed to learn more. I started watching how the finite number of NFTs in a particular collection would sell upon launch then immediately trading went crazy, and how the lowest sequence number or highest amount of rarity would fetch the highest prices. Next thing I knew I was trading NFTs and loving it. Fast forward a couple of years and I not only trade NFTs but have commissioned a collection of my own. I never saw that coming, but here we are!
One of the reasons I think NFTs are here to stay is how many different non-crypto uses they serve. Considering that each NFT minted is unique, they are a new way to buy and sell physical assets, greatly reducing fraud. For example, real estate, physical art, legal documents, even automobiles! A home has already been sold using an NFT; I’m sure millions more will follow. This is just the beginning. I’m convinced the world will find NFTs to be useful in holding and transferring ownership of anything from a sculpture to sports trading cards, to event tickets, to a private island. Exciting to me, is the thought that being an early adopter of this technology could offer me the opportunity to get items at lower prices! Once there is a greater public adoption of trading in this way, more buyers could turn into much higher prices. This is a great time to get involved in NFTs!
Crypto gaming use
Besides all the physical, non-crypto uses for NFTs, of course there are multiple uses in the crypto world. Many are used to raise funds for token projects, but an enormous future for NFTs exists with in-game assets in online gaming and metaverse play. Once connections were made between NFTs and gaming/metaverse play, it sealed the future for NFTs as far as I was concerned. Gaming has established itself as an unstoppable force, and metaverse projects are currently in the opening stages of what will be one of the biggest life-altering moves in history. NFTs are securing an important place in the metaverse.
Of course, something that cannot be denied is the use of NFTs in collecting digital art. There are artists of all kinds around the world, and the ability to sell their art to a world-wide audience is a game-changer. There are also millions of collectors who appreciate art for what it is – someone’s creativity expressed in a visual way – and will collect it for that inherent value alone. NFT sales has become a new way to get one’s art into the public eye without having to be “discovered” then on display at a local art gallery. It also gives the public a way to afford and collect art that speaks to them on a personal level.
Finally, I feel strongly that any transaction I can do not involving a centralized bank is a better transaction. A seller can list an NFT on a marketplace and I can simply pay from my crypto wallet directly. No banks involved, or any of the myriad of others along the way. I’m all in! That greatly reduces how many hands are in the money, making for a less expensive transaction for the buyer, and a higher profit margin for the seller. I’m a big fan of eliminating all the middlemen.
I’m convinced the world will soon see this is not just a passing fad from the crypto world, but that NFTs can and will make a difference in our every day lives.