If you’re in the cryptocurrency world, you’ve probably heard of non-fungible tokens (NFTs) by now. If you haven’t, we can break that down by introducing the idea of fungibility, which means to be able to replace something with another identical item. Money is a good example of something fungible because we can easily replace one $10 bill with another. That being said, when an item is non-fungible it means that it is truly unique and can’t be duplicated.
Non-fungible tokens come into play when we own unique digital assets. The blockchain provides a number of layers that give users ownership and management of a digital asset. Each asset might have several unique properties that make it irreplaceable.
You probably remember hearing about CryptoKitties back in 2017. People started making a ton of money adopting, raising, and trading virtual cats on the Blockchain. Some of these cats were selling for as high as $100,000. If you think that’s a lot of money, think again. A few weeks ago, someone sold a piece of virtual land for $1.5 million. I hope it had a nice backyard.
Non-fungible tokens continue to make headlines, and it’s clear that the demand isn’t going anywhere. Last year, the total value of NFT transactions quadrupled, hitting over $250 million.
As you can imagine, there are a ton of use cases for NFTs, from gaming to artwork, but the true power of NFTs is only just starting to take off now. While some of these NFTs might seem trivial, I think that NFTs are soon going to play a much bigger role in our everyday lives.
If we could track physical goods using NFTs, we would be able to fight against counterfeit products. Each product would just need a tag to connect it to some NFT identification. Companies could also use NFTs to represent complex financial products like insurances and bonds. If each contract gets converted into an NFT, it can be then traded on a secondary market.
In the future, at NetCents, we hope that owners of rare physical products will be able to use our technology to create their own unique NFT. This kind of authentication will go far to assure both merchants and customers that their possessions are genuine.
We’ll be focusing on the spots authentication/memorabilia market. For example, a merchant could use our technology to sell a series of digital photos issued with unique numbers. The user would then receive the memorabilia as the blockchain authenticates it. The only way to get this NFT would be through using NetCents technology through a dedicated website.
Our goal is to be able to connect merchants, athletes and users from all over the world. Fans will be able to combine their love for sports, with their growing interest in cryptocurrency. Part of our vision is to be able to create products that make cryptocurrency the preferred payment solution. We’re so excited to be involved with another element of the blockchain universe. You can read more about this in our recent press release.
I see so many possibilities with non-fungible tokens. What do you think will be the primary use of NFTs?
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