7 December 2021
Without a doubt, blockchain technology has become one of the fundamental technologies of the twenty-first century. As a result, blockchain technology is slowly entering various areas of our lives. A crucial element of the entire blockchain-based economy are NFT tokens, which have recently become one of the most popular and exciting digital data. So, why NFT is gaining so much popularity and recognition? Experts believe that NFT tokens have a completely different application than classic cryptocurrencies. Therefore, they have a real chance to revolutionize many industries, such as art, entertainment, sports, or even real estate.
In this article, we will answer why NFT tokens are becoming a more and more important digital asset in the economy of many industries, why NFT tokens are so valuable to many people, and the future of the NFT era.
NFT stands for the words "non-fungible token." It is a sort of a digital certificate, with unique features unheard of in the digital world. Every NFT is unique, technically unchanged, and impossible to alter. These features show why NFTs are so unique and superior to the current virtual files, whose main weakness is that they can be easily copied, spoofed, and hacked. Moreover, NFT's ownership rights may not be transferred without the owner's consent, which is why NFT tokens can serve as proof of authenticity.
Due to their complicated nature, NFTs can only be used to certify the originality of the file they relate to. This is why NFT tokens are called digital certificates. To clarify, the token associated with a specific file does not prevent that file from being copied or altered. This means that even though the file can be copied, the token itself is impossible to forge or counterfeit.
In addition, NFTs cannot be exchanged for another token. However, if the NFT owners wishes to do so, they can transfer the NFT to someone else. NFTs make it possible to include information about the owner of the original file. This is why NFT certificates of originality are being traded in the virtual world for huge amounts of money, just like works of art sold and bought at online auctions.
The NFT technology can also be used to issue unique digital items. In fact, many industries are starting to take advantage of the blockchain technology to create and sell digital tokens, which represent parts of real assets. What’s particularly interesting is the fact that NFTs are also finding a practical use in storing digital identity data.
At this point, you may be questioning why NFT tokens are being traded for huge sums of money. The more you try to understand the phenomenon of NFT tokens, the more you may start to wonder why they seem to be of so much value to people that they are willing to spend thousands, if not millions, of dollars to acquire them.
One of the main reasons why NFT tokens are so sought-after is that acquiring them gives you the right to a one-of-a-kind token that is only available on the blockchain. Another reason is collectability. Just like with works of art, increased interest in a specific NFT encourages potential buyers to focus on it and value it more. This explains why NFT creators are becoming incredibly wealthy, trading items that may seem to have little or no value at all.
Many industries are now adopting NFTs. Let's take a look at why NFT tokens are widely used in different industries.
Thanks to the introduction of NFTs into the art and music industries, people can buy a work of art in separate parts via multiple, separate transactions. What's more, since anyone can create and sell NFTs artists do not have to rely on galleries or recording studios to sell their work. Thanks to NFTs, they can now sell their art and music directly to buyers and avoid having to share part of their profits with an intermediary.
NFTs have also started to appear more frequently in the sports industry. Some of the biggest football clubs in the world use NFTs. Big teams such as Barcelona, Real Madrid, or Juventus are already offering NFTs in the form of fan tokens. In addition to football and basketball teams, NFTs are being implemented in other sports. The recent partnership between a South African cycling team, Qhubeka, and a cryptocurrency platform based on blockchain technology, NextHash, is an example of this. Team Qhubeka Nexthash plans on incorporating the first ever NFTs into cycling.
NFTs found use in the fashion industry mainly as proof of the authenticity of the designers' creations. Since the authenticity of the luxury dress or the designer handbag that a client wants to purchase can be easily verified thanks to NFTs, high class consumers can now be sure that they are buying the original piece. As NFTs cannot be forged, this means that falsifying the originality of designer clothes or accessories is now impossible.
Selling digital items such as skins, weapons, and maps in games is not new. Players have been spending their money on these items for years. However, with the development of blockchain technology and the appearance of NFTs, these digital items can now be sold as unique NFTs with even more properties that weren't available to players before.
As mentioned above, NFTs can be used to store identification data safely on the blockchain. This is very practical in industries such as real estate. In real estate, NFTs are being used to prove the ownership of a property or land via a signed token secured by a series of complex cryptographic algorithms.
The NFT phenomenon is attracting more and more investors, as well as creators, around the world. NFTs have proven to be more than just digital collectibles. They also have many beneficial and practical uses across different industries. For this reason, the future of NFTs is more than just digital works of art or fan tokens. At NextHash, we believe that now is the best time to invest in NFTs or create them. Our blockchain platform allows investors to trade crypto NFTs easily. Click here for more information!