Nonfungible tokens (NFTs) have gained much ground in the crypto space, as their use cases have generated enough profits for NFT traders. This has made people believe that NFTs are for just buying and selling purposes. That’s not it, there is more to it.
NFT has been in existence right from time, but with blockchain, it gained massive attraction and massive authenticity.
A lot of people believe that NFTs won’t last for long, claiming that it is only gaining momentum through social media hype and bangs. This might seem true only when you don’t understand what NFTs have to offer presently and in the future.
NFTs are beyond the picture you see and beyond the case of originality and authenticity.
After finding some frequently asked questions (FAQ) on google search about NFTs, cryptoforpidgin decided to answer those questions and thus acquaint our users.
The questions are as follows;
Why is NFT important since it is just a mere image?
What are the use cases of NFTs?
Will NFTs be the future?
Let’s quickly answer the above questions.
Why is NFT important since it is just a mere image?
This question looks funny because NFTs are not mere, and they are not only images. NFT can be a video, podcast, image, etc.
So, it is not just an image. NFTs are authentic and nonfungible. Any NFT you process is just rare, as you are the only owner. 1btc can be exchanged with 1btc, but NFTs are only unique. The reason behind this question is that the technology behind NFTs is still yet to be comprehended by people. Especially the ones who are into the NFT space for just buying and selling purposes. With more advanced technology, more use cases of NFTs will evolve.
What are the use cases of NFTs?
A use case can be seen as the importance, or the solution a project has to offer in a certain space.
The following are the known use cases of NFTs;
- Authenticity and originally: NFTs offer originality to an image or any asset through the blockchain. The originality makes it impossible to be forged or copied. For example, if you saw a normal image online, you can easily give it to a good designer to copy and forge the same image correctly. But if it’s an NFT, you can never copy it, because it has been minted on a blockchain, offering it authenticity. Also, having an invitation card for only 50 persons can be made so possible if the cards are turned into NFTs. A graphics designer can counterfeit a normal invitation card but not an NFT.
- Fan Reward system: Just as we have fan rewards cryptocurrencies, we can still use NFTs as rewards for our active fans on any platform. That NFT can be sold or kept for a profit later on.
- Branding: This is one of the latest use cases of NFTs, as you can use them to brand your business and gain massive attention to what you sell or do. Recently, we saw an Instagram footage of a burger shop that utilized the renowned bored ape yacht club NFT for its branding. The cups or burger plates were decorated with the bored ape NFT image. Also, a celebrity can use his/her NFT to brand a business and gain a good audience.
- For Gaming: This is a known and active use case, especially in the axie infinity gaming. Where you battle with NFTs to earn rewards. So many gaming projects have brought the full options of NFTs and this has improved the gaming world positively.
- NFT utility in the metaverse: Nonfungible tokens will easily find their way into the metaverse through fan rewards, buying of assets in the metaverse, etc. As celebrities have zoomed into the metaverse, their costumes and wears can be sold as an NFT in the metaverse.
Will NFTs be the future?
The nonfungible token is not just a mere picture as said earlier, the applications of NFTs will continue to evolve as we are entering a fully digitized world. With decentralization in mind, NFTs will last long in the future as far as blockchain is still the trend. Looking at the above use cases, not all have been applied fully. In the future, all use cases will be embedded in different platforms to validate utility.
Also, Looking at the great brands who have declared interest in NFTs, like Samsung who announced that NFTs will be detailed through their TVs.
This means that the current world follows the current tech trends as well as the current competition in the crypto space. As we expect more crypto adoptions in the world today, the NFT space will not be left out.
On second thought, some influential men don’t believe in NFTs. Different articles have been seen to undermine the potential of nonfungible tokens, but it was also picked that it can’t be stopped.
Remember when Bitcoin software was aired in 2010 by an anonymous person or group of persons called Satoshi Nakamoto. Everyone spoke ill of Bitcoin. Some said Bitcoin won’t exist beyond 2010, but since then Bitcoin has been stronger as time goes by. So, no matter the ill thoughts facing Nonfungible tokens, they will do well in the future when their potential becomes clearer and more feasible.
With the adoption of nonfungible tokens by celebrities, brands, and technology platforms, the space has been leveled for NFTs to zoom in with pace.
Conclusion
This article has explained the reason why NFTs are bought with a high amount of money. Sometimes, the prices of NFTs are so hilarious that you would ask, “32ETH for this ugly image?”.
It’s the scarcity of an NFT that determines the demand in the marketplace. Celebrities have also purchased a few NFTs, and it’s not just a show-off but a turn-on if you could see the clear picture.
The question, “Will NFTs be the future?” has been answered here with a few reasons, although you might have a second thoughts. You can share in the comment section and expect immediate feedback.