What an NFT is and How One can Make Money on It
Author: Eugene Savitsky
Dear Clients and Partners,
The stock market is so dynamic that sometimes investors find it difficult to keep track of all tendencies. To avoid such an exhausting race, many of them turn to long-term investments but there are some who always crave adrenaline and try to jump into all possible reckless ventures.
Last week, I wrote an article about SPAС, shares of which skyrocketed by hundreds of percent and now the time has come for Non-Fungible Tokens (NFT).
What is a Non-Fungible Token?
A Non-Fungible Token is a digital unit, which certifies the right of ownership and uniqueness of digital assets. An NFT can also be created for things in the real world.
What is a distinctive feature of an NFT?
Here’s an example: an artist is doing a painting, which can be later photographed and uploaded online. This photograph will be copied by other users in the same quality, in which it was initially uploaded. As a result, it will be difficult to see the difference between the original digital painting and its copy, and the original will be only the painting from the real world.
An NFT allows the creation of a unique code of the painting, which can help to define its original and the true owner in both real and digital worlds. At the same time, an asset can be created in the virtual world without binding it to the same object in the real one.
But there are some who took it a step further. They destroyed the original painting leaving only its digital copy. It’s difficult to accept but that’s the reality.
Injective Protocol burned the original painting “Morons (White)”
Injective Protocol bought a famous Banksy painting from the New York gallery Taglialatella Gallery for $95,000 converted it into an NFT, and then burned the original. As a result, only a virtual asset with a unique code is left. Now the painting doesn’t require any alarm systems, specific storage conditions, and other things to accompany it in the real world.
A tokenized asset will continue its existence in the digital environment, all the people will have to do is to relocate into the virtual world and everything will fall in its place.
Where can an NFT be used?
As you have already understood, one of the applications of tokens is artwork-collecting. An NFT is created for originals of paintings and sculptures, and when the owner wants to sell a physical object, they can place an NFT on auction and it will be enough for proving the authenticity of the asset and the right of ownership.
In online games, users often buy clothes, lands, weapons, characters, and other gaming accessories. Creating NFTs for virtual objects will allow arrogating the right of character ownership for example, and this right will be beyond the game developer’s power. Such objects could be exchanged or bought for real money. This might fuel further development of the gaming economy
Personal identification can also be one of the areas of potential NFT usage. Passports, driving licenses, birth certificates, and other personal documents can be assigned with NFTs, which can be used for approaching different institutions in your country or outside it without personal attendance. Probably, the coronavirus may lead to the creation of COVID-passports using NFTs.
Read more at R Blog - RoboForex
Sincerely,
RoboForex team
