This year, non-fungible tokens (NFTs) seemed to have burst from the ether. Are NFTs worth the money or all the attention?
In the opinion of some experts, they’re just a fad that will soon burst. Others think NFTs are here to stay, and they believe these changes will influence investment for years to come.
Ryan Hoggan, an experienced entrepreneur, business executive and venture capitalist is one of the experts that believe NFTs are here to stay. We will be speaking to him on why he is focusing on and strongly believe in NFTs.
Ryan Hoggan, can you give us an insight into what NFTs are?
Before understanding what NFTs are you need to know what “fungibility” is. When I say an asset is an eligibility it simply means that the asset’s capacity can be traded for another item without losing value.
A BTC (Bitcoin) is worth the same as another BTC, for example. When we concentrate on Non-Fungible Tokens (NFT), however, everything changes: a non-fungible token has a different value than another NFT of equal or equivalent value. The word “non-fungibles” comes from the fact that each NFT has distinct traits that define its oddity.
Ryan, why did you choose to focus on NFTs?
Although non-transferable, genuine, and having protection for ownership rights, NFTs offer important benefits such as being non-tradable. “Transferable” describes anything that is fungible and traded like exchangeable tokens.
In contrast, non-fungible tokens may only be bought and sold on certain platforms. The worth of anything can only be measured by considering its uniqueness.
There are no false facsimiles since NFTs are powered by Blockchain technology, making it hard to create fake facsimiles, and as a result, you have confidence that an NFT is real and almost impossible to counterfeit.
What can NFTs be used for?
For artists and content providers, Blockchain technology and NFTs provide a unique possibility to monetize their commodities. The significance of artists no longer having to depend on galleries or auction houses to sell their work is, for example, a recent trend that emerged in the 21st century.
In the first place, instead of selling it to the customer, the artist may sell it directly to the customer as an NFT, therefore keeping more of the revenues. Alternatively, artists may also choose a portion of their sales to get royalties, ensuring that they get paid each time their work is sold to a new owner.
This feature is appealing to artists since they never earn future compensation when their work is sold for the first time.
Why did you choose NFTs over cryptocurrency?
Physical money and cryptocurrencies are both “fungible,” which means they may be traded or swapped for each other. They’re also worth the same amount: one dollar is always worth another dollar and one Bitcoin is always worth another Bitcoin. NFTs aren’t like other materials. Each contains a digital signature that prevents NFTs from being substituted for or compared to one another (hence, non-fungible).
NFTs can only have one owner at any one moment. The unique data on NFTs enables it to simply check who owns them and transfer tokens between them. They may also be used by the owner or author to store specialized data. Artists, for example, may sign their work by putting it in the metadata of an NFT.
How Does NFTS work?
This year, understanding more about NTF is as important as learning about the future of real estate. All indicators are leaning towards the massive explosion of NFTs.
NFTs are stored on a blockchain, which is a decentralized public ledger that keeps track of transactions. Most people are acquainted with blockchain as the underlying technology that allows cryptocurrencies to exist.
NFTs are most often kept on the Ethereum blockchain, although they may also be stored on other blockchains.
An NFT is made up of digital objects that represent both physical and intangible goods and is then “minted.” NFTs are, in essence, digital versions of tangible collectibles. As a result, the customer receives a digital file rather than a real oil painting to put on the wall.