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WHAT IS AN N.F.T?

If you are unaware what an N.F.T is you should probably begin looking into it because it is something that will be utilized in the future and play a pivotal role in record keeping and proof of ownership for digital documents , audio , video, art and possibly more. A Non-fungible Token is a unit of data stored in a digital ledger (referred to as The Blockchain) that certifies a digital asset to be unique. This Token is a type of cryptocurrency, much like Bitcoin or Ethereum. The difference between a standard crypto Token and an N.F.T is that an N.F.T is limited and unique and cannot be exchanged like-for-like. It cannot be replaced by something else. It is one of a kind.

POTENTIAL USE

N.F.T’s can be used to represent items such as photos , video’s , audio and other types of digital files. An N.F.T once minted also serves as a one of a kind digital item which can be collected as an asset that can appreciate or depreciate in value, making N.F.T’s a possible investment vehicle. A major benefit of this technology is that it allows digital content or records to be authenticated giving a consumer of the product proof of ownership for whatever they created or purchased. This is all verified by the Blockchain. N.F.T’s create digital scarcity , allowing people to sell original creations online. The blockchain allows the N.F.T to have an embedded code placing a unique identifier on the file. This aspect as been attractive to collectors . N.F.T’s are like physical collectors items, only digital. So instead of getting an actual oil painting to hang on the wall , the buyer gets a file instead. This comes with exclusive ownership rights, because N.F.T’s have one owner at a time. Potentially this tech can be used to produce Land deeds, Titles, Licenses and any other document that has a primary purpose of proving ownership.

CURRENT USE
If you search the internet, currently N.F.T’s are seeing big use by independent artists who are making fortunes selling digital content. An example would be Kevin Absoch , who sold his artwork “Forever Rose” for a reported $ 1 million on Valentine’s day in 2018. The piece is the  world’s most expensive N.F.T art thus far.

CONCLUSION

N.F.T’s are going to be a technology that will and has flourished in the world of crypto. At the moment it is not mainstream , but it is only a matter of time before big Government and corporations begin to utilize this technology. There is a serious grievance as of present . The creation of N.F.T’s  causes exorbitant use of energy on the ethereum blockchain and is very expensive and out of reach for some consumers to mint a token.There are also concerns during this current political climate to reduce carbon emissions to slow down climate change which make the search for more efficient ways to mint tokens possible.

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