NFTs, short for non-fungible tokens, are blockchain-based representations of physical or digital objects. Most people think of NFTs in terms of images and – for example, the Bored Apes – which can be purchased, often as a speculation or investment, with cryptocurrencies. But in fact, the technology offers a whole range of possibilities. An NFT defines itself as a digital asset that represents objects in the physical world, such as music, videos, or other goods. They are traded online using cryptocurrencies. This allows artists to make money from NFTs.
NFTs, like cryptocurrencies, are stored using blockchain technology. Usually, this is done on the Ethereum blockchain. This technology makes each NFT unchangeable, indivisible and unique.
Non-fungible tokens are popular with both users and businesses because they revolutionize in-game purchases and collectibles, among other things. For players and collectors, NFTs offer the opportunity to become immutable owners of items and other unique assets. Structures such as casinos or theme parks in virtual worlds can be monetized more securely in the future. Brands such as Adidas, Coca-Cola and Lamborghini have already designed their first NFTs. The opportunity for customers and fans of the brand to own something exceptional is an incentive to buy. So there is plenty of money to be made from NFTs, both by individuals and companies.
The technology offers even more opportunities, away from digital worlds. For example, rental or sales contracts and smart contracts can be designed to be tamper-proof and unalterable.
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