What is NFT? Use and Value

What is NFT? Use and Value

This article will discuss the NFT definition, value, and use.

NFT is an abbreviation of the term “Non-Fungible Token.” NFT is a unique digital asset driven by Blockchain technology, supporting cryptocurrency like Bitcoin. 

Unlike NFTs (Non-Fungible Tokens), Cryptocurrencies/Cryptos permit peer-to-peer money or currency exchange systems.

An NFT is an unexchangeable asset, meaning no two NFTs are identical or valued at the same price. 

In comparison, NFTs are rare assets like Mona Lisa Painting, The Pokémon cards, Jordan limited edition sneakers, etc.,

NFTs create a shortage of available assets in physical and digital forms and provide digital certificates of ownership and authenticity. 

Non-Fungible Token NFT Use

Anyone or an organization can create non-fungible tokens (NFTs) representing different forms of physical, metaphysical, and digital assets.

Examples of these assets include; photos, music, painting, vehicle, house, land, etc.,

  • Artists can sell their art exclusively to their fans/clients/customers to prevent piracy of their work.
  • Organizations and companies can create and sell event tickets utilizing NFTs to prevent fraud and scams as one ticket to a person.

There are unique marketplaces to create, buy and sell NFTs. Notable NFT marketplaces include OpenSea, Mintable, Nifty Gateway, and Rarible. 

Non-Fungible Token NFT Value

The decision to invest in NFTs, buying or selling, should be thoroughly considered. 

Like its counterpart cryptocurrency, non-fungible tokens are highly speculative and risky assets. We all know that any assets built on blockchain technology are volatile. 

NFT assets are only worth whatever one is willing to pay. It will only be worth the purchase if an individual resells an NFT asset with interest. 

In the year 2021, Nifty Gateway Heist happened. Hackers accessed the popular non-fungible token marketplace, stole purchased NFTs assets, switched NFTs assets ownerships, and resold assets for higher profit margins.

For a comprehensive knowledge of NFTs, Cryptocurrency, and the Blockchain, you should consult professionals and read in-depth before investing.

Investing money you cannot afford to lose is never a good idea.

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Safefellow Editorial Team

This post is a collective effort of the @Safefellow editorial team. It gives us immense pleasure to share our knowledge with you, and we hope you find the readings informative and educative.