NFTs are getting Popular in Crypto and Blockchain World
While the rising value of Bitcoin and other digital currencies has dominated the crypto market news cycle this year, another digital asset has been forming in the background. It might create a brand new frontier in the increasing market for crypto and blockchain products. Non Fungible Tokens (NFT) differ from other digital assets like Bitcoin. They are digital tokens with distinct properties, with metadata acting as a permanent and irreversible record of what the token represents.
In a nutshell, NFTs are the digital equivalent of a certificate of authenticity, which is frequently provided with physical assets such as rare artworks. This is in contrast to digital currencies like Bitcoin, which, as the ‘coin’ suffix suggests, operate as a means of exchange similar to pounds and dollars and, like real currencies, may be broken into smaller sums if needed.
NFTs’ distinctiveness and authenticity make them appealing to markets that value these qualities since they can also operate as “digital collectibles.” The video game business is one possible area where NFTs could find a home, as digital collectibles such as in-game character outfits or objects may sometimes attract high prices from players even though they only exist in electronic form.
Blockchain Venture Firm CEO – NFT has Huge Potential
The introduction of NFTs has been one of the topics receiving a lot of attention in the crypto and blockchain sector in 2020, with many companies looking at the new token type as a new market to exploit. “Using NFTs makes it easier to buy and sell art…it also provides a fantastic platform for artists to sell their works to collectors,” Travia said, adding that he expects NFTs to gain “more popular adoption” as more mainstream artists and huge companies get interested.
The COVID-19 epidemic, according to the CEO, may increase the appeal of NFTs because artists “had to interact digitally with their fans and communities” due to the rise of social distancing and remote involvement. “There are a lot of channels and big events that can’t happen right now because everyone is reliant on technology… This expands the use cases for blockchains, and I believe NFTs will provide a new way for people to communicate,” he said.