What Does NFT Stand for and Who Uses It?

In the spring of 2021, NFT was at its peak, but at the same time, few people understood why anyone would be willing to pay for a JPG image. At some point, NFT burst into the global arena. The excitement has subsided now. Many people want to know Holo price prediction 2025. Still, NFT continues to cause genuine interest.

What Is NFT?

Let’s start with the terminology. NFT is a non-fungible token, that is, a unique record in the blockchain. The main feature of NFT is the impossibility of replacing, substituting, and changing information. It makes it an ideal tool to prove ownership of a digital asset. Essentially, when buying an NFT, the buyer receives a certificate of authenticity and ownership of it.

Where Is It Used?

NFTs are used to monetize popularity. Due to their fame, media personalities can quickly and expensively sell their work. So, in March 2021, the singer Grimes sold her NFTs within 20 minutes for $5.8 million.

Collectors are also passionate about NFT art. In the digital marketplace, collectors can find one-of-a-kind originals. The advantage of virtual collecting is an infinite expiration date. That is, the purchased item will not lose its properties.

Many artists exhibit their work on trading platforms. Thanks to the secure blockchain, their copyright is written in the code, and no one can change it.

NFT tokens can be resold. This possibility is embedded in smart contracts technology. Users use NFTs as an investment, but it is difficult to predict whether they will be profitable and whether the cryptocurrency rate will rise or fall.

  • Specialists are looking for new ways to use NFT. There are several prospects for the application of technology:
  • Release of documents. You can eliminate the risk of falsifying diplomas or certificates due to the reliability of the code.
  • Musical sphere. Artists are interested in moving to NFT platforms to release new albums. In this case, the musicians will receive full profit from the implementation of creativity and not pay fees to streaming services.

Production of new types of goods. Samsung has already begun to produce digital panels for “placing” purchased virtual paintings, videos, and GIFs in the apartment.

Why Buy NFT When Anyone Can Use the Digital Product for Free?

In 2022, you may have a reasonable question except for what BAT price prediction 2030 is: what gives possession of a digital art object if anyone can download it to their computer or smartphone and watch it anytime?

Everything is not so easy. Formally, you can only do what owners allow you to do since only they have the right to use it. In addition to the ability to dispose of a digital asset at one’s discretion, the value of NFTs is also added by exclusivity and the fact of owning a digital asset.

The owner of a work of art in the form of an NFT can profitably resell it. The ability to resell was originally built into the NFT smart contract, and from this point of view, tokens can be considered a fairly profitable investment.

The possibility of resale is the most painful issue about NFTs. Digital works of art are bought with Ethereum cryptocurrency tokens. Will they cost the same over time? How much will their value increase (or vice versa, decrease) if the price of Ethereum changes dramatically due to the situation on the exchange? Will the value of a work of art be based on its real value, or will it depend on the price of the cryptocurrency? No one has answered yet.

NFT is most valuable for collectors, art lovers, and gamers. For the average layman, NFT can be interesting as a technology but hardly as an investment.

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