The economy suffered a hard blow in 2020; however, there was a speeding up shift taking place in terms of the digitization of companies, businesses, and of course, e-commerce; it was at that point that cryptocurrencies and tokens gained the strength and confidence necessary to position themselves in the market hit by the pandemic caused by the Covid-19.
What are tokens?
Tokens are the core element of the DLT economies, and the NFT is just one type of token. Non-fungible tokens (NFTs) are unique and are not interchangeable with each other; we can get security tokens that provide several functions such as bandwidth allocation, and one of the most economically trending are payment tokens that we can use similarly as FIAT money in payments and transfers.
Economics Trends with NFTs
Something that is happening today that is going unnoticed is the digitization or tokenization of physical assets. NFTs are the digital representation and sure replacement of different types; not only will they replace any type of investment product we already know, such as shares, but we will also see how it will help to eliminate any intermediate between the buyer and the supplier.
We know different projects are being digitized or represented in an NFT; we can already find that the market is using this new way to monetize not only shares but also music, vinyl records, books, collectible cards, art paintings, and it is also known that the first Tweet was sold for an amount greater than 2 million dollars in ETH funds.
Acquisition or sale of NFTs
It achieved this thanks to the development of technology and protocol behind NFTs, as it allows creating unique and therefore collectible digital assets; this technology incorporates additional information to the original file, thus permanently leaving a certificate that proves that this is the original digital file, being able to transform any of the aforementioned physical assets into digital and verifiable assets that you can be traded on the blockchain. It should be noted that the characteristics of the NFTs allow having the absolute ownership of the acquired digital assets, or certificates, and allow generating money with their sale thanks to the valuation of the digital assets, and the most notorious is to be able to do it directly without the presence of intermediaries.
Do you have an opinion on this issue? How else can NFTs be used?
If you have any doubts or queries you can contact us or write your query below (comments section).
Image of fancycrave1 via Pixabay.com under Creative Commons license.
