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What Are NFTs and Why Are They Important?

09/06/2021 12:31 PM
If you don’t live under a rock, you will already have come across the term NFT several times in the course of the past few months. Did you pause to wonder what they are or why they’re suddenly the new buzzword in collector’s circles? 

In a nutshell, Non Fungible Tokens are unique digital tokens assigned to anything non-tangible, like digital art, music, even basketball slam dunk clips!
This blog will cover exactly what NFTs are, what makes them desirable to collectors, and how they will play an important role in digital commerce in the coming years. 

We can tell you that NFTs are the future of digital trading. Let us show you why.
 
Why Does It Look Like NFTs Are the Future of Digital Trading? 
 
NFTs or Non Fungible Tokens are one-of-a-kind, that is, they are non-interchangeable. Each NFT will have distinguishing features that will set it apart from similar counterparts. This, in turn, creates a digital scarcity that makes them desirable to avid collectors all over the world. 

Gone (or going) are the days where you paid millions of dollars only for extraordinary paintings or other art created by renowned artists hundreds of years ago. Now, people are willing to pay (and have most certainly already paid) the same big bucks for cat memes! We’re not even pulling your leg!

A one-of-a-kind digital rendition of the Nyan Cat meme from 2011 by Chris Torres sold for about US$590,000 in an online auction. Mind-blown?! Keep reading!
 
Why Are NFTs So Desirable to Collectors? 
 
Collectors love collecting unique things, right? One of a kind items that their peers will covet and wish they themselves had to mount on their trophy shelves. 

And, an NFT is about as unique as it gets. Sure, you can’t touch or feel an NFT. You most certainly cannot hand it off to someone one fine day. But, the digital scarcity of NFTs makes them extremely desirable.  

NFTs can be used to represent pretty much anything such as digital art, music, and more. With collectors and art enthusiasts running to get a front row seat to this digital action, NFT marketplace development platforms have quickly evolved into a multi-million dollar revenue marketplace. 

So, if you purchase an NFT, you get proof of ownership over unique collectibles, such as quirky digital art and even top NBA moments. 

In fact, the NBA has set up an NFT marketplace platform called NBA Top Shots where they sell the best NBA moments to people who are willing to pay for it. Yes, you can easily watch these clips online on YouTube, but if you purchase an NFT, you will be the sole owner of that clip in the whole wide world. 
 
Then Why Don’t We All Just Make Lots of NFTs?
 
Ah, the catch! 

While it would be great if you could just create NFTs left and right and sell them to make millions overnight? Yes, of course! So, why isn’t everyone doing just that?

Simply put, NFTs take a lot of energy to create. In some cases, it can require tremendous amounts of energy, energy that is enough to power a small county for a day. If you factor in the cost of creating an NFT from an environmental perspective, you will understand clearly why NFTs cannot be mined left and right. 

Now, do you understand how they thrive by creating a digital scarcity? 

The tremendous amounts of energy it takes to create NFTs makes them scarce and hence adds more value and evokes the desirability to own them in NFT enthusiasts. 
 
Why Are NFTs So Trusted? 
 
Everything in the world as we know it is susceptible to fraudulent activities. Businesses, banks, people, nothing is above corruption. Right?

Well, NFTs and the transactions involving NFTs cannot be manipulated by anyone. 

This is because NFTs are built on blockchain technology (yes, the ones used by cryptocurrencies) which makes them and their transactional records accessible to the general public. This helps in maintaining transparency of all the NFT transactions that take place globally and ensuring that there are no duplicates. 
 
Why Are NFT Development Services and NFT Marketplace Builders Trending Now? 
 
NFT marketplaces are digital market spaces that facilitate the exchange or trade of NFT collectables, such as unique digital art, and memes, among others.

It’s pretty much like any other regular marketplace such as Amazon, except the goods and services purchased are intangible and cannot be reproduced a second time.   

And, oh yes, did we already mention that NFT marketplaces are pretty much the future of digital trading? Yes? Well, then this was for emphasis. 

Trusted NFT marketplace developers like oOrjit can help you out with your NFT marketplace development requirements so that you can launch your own NFT marketplace oriented towards delightful user experiences. 

You’ll need a premium NFT marketplace development company for innovative NFT marketplace development solutions.

Why don’t you give our experts a call?