Non-Fungible Tokens are those tokens which we can use to represent ownership of unique items. Non-Fungible is used as an economic term to describe things that are not interchangeable for other items as they posses’ unique properties. They can only have one owner at a time and are secured by blockchain so that no one can alter the record of ownership. Some of the examples which include in-game items are avatars, domain names, and event tickets. There are several other marketplaces that have popped up around NFTs, which allow people to trade like Rarible, OpenSea and Nifty Gateway. Here are the twenty advantages of NFTS.
1. Safety
When it comes to deal with any type of currency, our main concern is safety. Now, NFTs runs on blockchains, which are publicly transparent, and almost impossible to modify or delete, even hack. Therefore, when the data is updated in the chain, it cannot be altered or deleted by any means.
2. Authenticity
The major feature of these Non-Fungible Tokens is their uniqueness because they are created on blockchains, having each personal record. These NFTs are immune against any replacement and modifications. Multiple replicas can be allowed only in case of tickets.
3. Ownership
While purchasing a NFT, you are acquiring an ownership over it as these tokens are publicly transparent and are tied to blockchain. This track-down ownership stops the owner from stealing other people’s IPs and are never meant to trade for other NFT but they might be sold, making ownership transfer easier.
4. Insurance
All the items on the blockchain are related with smart contracts which keep the record of ownership details, data and special attributes. This smart contract can be used to prove its uniqueness and in case it gets lost or stolen, the owner can claim insurance over the recorded information on the blockchain.
5. Transferability
NFTs can be traded in their marketplaces freely, without any problem and this can be possible with the help of smart contracts. Once an item is turned into NFT, it can be sold or bought in a wide range of options in their trading.
6. Digitally Scarce Resource
A blockchain network is present where its related NFT is kept. Due to its unique properties, these tokens are a scarce resource and as a result, the certificate of ownership is available on the different networks for a digital item to be proven true.
7. Indivisible
Tokens cannot be broken down into smaller denominations and sold or bought separately. They are a whole chunk of data which can be only traded in the particular market and not meant to be stolen.
8. Efficiency
These are not in comparison with stock market or bonds, but adding NFTs to an investment portfolio will increase its chance to give better efficiency. It can enhance the way financial portfolios are constructed, allowing greater diversity and precise risks.
9. Collectibles
Technically, these NFTs are collectibles and by keeping a good hold on to them, their value will increase over time. As mentioned already, they are totally unique over their ownership and there’s no harm to keep a record of them.
10. Copyright
NFT technology allows content creators to retain their full copyright which is uncommon in most of the licensing agreements. This allows them to generate revenue value without giving up their copyrights. It is considered as one of the best advantage of using these tokens.
11. Opportunity
NFTs have found wide range of applications in the field of digitalization and these content creators focus on helping general public. When they sell their content, the funds directly get transferred to their accounts leading to smooth and secure trade.
12. Boosts Growth
The creators can facilitate new places for the inclusive growth for all participants. NFT creators obtain true value of their sale and also interact with customers directly. This makes the process less time consuming and boosts the overall growth of this technology.
13.Decentralized
NFTs are decentralized and are not controlled by any central or state authority. They are only controlled by its owner who has the power of its personal ownership. Only they can sell or trade their NFT under their responsibility.
14. Data Record
NFTs existing on a blockchain allows a clear ownership records which means your artwork is never be subjected to theft or having its authenticity questioned. This advantage is precious as records of ownership for valuable artwork is tough to maintain.
15. Excitement
The blockchain technology is leading nowadays due to its secure and transparent features. It’s an exciting notation in customers’ behavior as by purchasing an NFT, you are actively taking involvement in this technological evolution. Some believe that this technology could lead to a significant shift in population of earth.
16. Knowledge
Due to this concept of NFT, people have shifted their attention to learn about blockchain and bitcoin. Earlier, these were the terms limited only up to the investors and businessmen but now, everyone wants to know more about it which is ultimately increasing the knowledge of public.
17. Physical Art Can’t Be Digitalized
Digitalization reduces a lot of burden to utilize energy and wastage of money. Internet has been helping humans since its existence and is taking part in NFT trade too. By this electronic means, you can directly invest from your home by your smart phones, whereas physical art was impossible to be traded with such ease.
18. Certain Value
The customers are solely satisfied by this blockchain technology and NFT has gained lots of trusted dealers. They invest their time and interest in it because of being assured of its certain and fixed value. All the above mentioned features contribute in increasing its web all over the world.
19. Environmental Cost
NFTs don’t interfere with other marketplaces and only trade within its limited and particular range. It is environment friendly and one of the highest grossing technologies for investment, with security. It is not subjected to any fraud, thus maintaining a good balance in advancement and digitalization.
20. Value Growth
NFTs are rapidly increasing in value and some of them are selling in millions of dollars. They are worth the investment as long as the token you purchase has an underlying value, which represents the value of any company or a person behind the proposal of the NFT.
