Technology is emerging at a tremendously rapid rate, and it’s even more pertinent than ever for us to keep up with the times. If you’ve heard of NFTs and are unsure what they are, or even if this is your first time hearing about them, you’ve come to the right place. Read on for a quick guide to learn about what NFTs are!
What is an NFT?
NFT stands for non-fungible tokens. They are cryptographic assets that come with their own unique identification codes and metadata, that can be accessed through a blockchain. As opposed to cryptocurrencies, which are fungible tokens that are similar to each other, they cannot be replicated and exchanged at the same value.
What makes them different from cryptocurrencies?
Each token is unique and cannot be replicated, and is not equal to each other. They are known to be compared to digital passports due to their unique and non-transferable nature that makes them different from other NFTs. However, NFTs are extensible, which means you can combine two different NFTs to create or ‘breed’ a unique ‘third’ NFT.
Examples of NFTs
Any asset can be digitally represented through NFTs, including online-only assets and physical assets. Such assets can include digital artwork, in-game avatars, physical or digital collectibles, event tickets and even real estate.
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Benefits of NFTs
The ‘tokenization’ of physical and tangible assets in the real world makes trading these assets more efficient, at the same time making it less likely to fall victim to fraud. NFTs can also help represent people’s identities, property rights, and even more. Since they are based on blockchains, it makes them an even better channel of representation for physical assets such as artwork and property, plus its ease of access due to its reduced number of intermediaries. NFTs also have the capability to streamline transactions and build new markets.
How NFTs bring impact to the world of investments
NFTs act as an asset that’s identical to the real world, but what makes it special is its ease of extending ownership among multiple people, as compared to the physical world. NFTs can divide investments of physical assets through the tokenization ethic with real estate, artwork and many more. To put it simply, the digital equivalent of a physical asset can be divided among several people, with each person owning a part of the asset itself, thus allowing the asset’s worth to increase.
With the emergence of the Metaverse and digital assets, the world is moving at an even faster pace than ever. We hope this quick guide gives you an idea of what non-fungible tokens are!
IQI is a leading proptech company that keeps up with emerging trends as they pass us by, leaning towards the usage of NFTs, the Metaverse and digital assets. Join us to become part of a team that embraces new technologies and goes beyond boundaries to reach higher heights!
