Human society and the world is set to become fully digitized. The majority of people are now fully accustomed to accessing almost anything online. The next growth surge in technology is here and is exponentially going to the moon! Blockchain, NFT (Non Fungible Tokens), Web3, AI (Artificial Intelligence), VR (Virtual Reality) and AR (Augmented Reality) are just a few terms to explore.
New technological shifts have often been met with resistance at their beginnings. The same is happening with blockchain technology and digital tokens known as “non-fungible tokens” or NFTs in short.
What are non-fungible tokens?
In order to understand what non-fungible tokens are, we first need to explain what fungible tokens are. Tokens that are fungible are tokens that are interchangeable. For example, if you have a bag of gold coins, each coin is worth the same as each of the other coins in that bag. Non-fungible tokens, on the other hand, are unique tokens that represent a unique item or asset. For example, you have an antique object that has been in your family for many years. That unique object is a non-fungible token because it represents the value of that specific (unique) object.
Cryptopunks NFT
Bored Ape Yacht Club NFT
Doodles NFT
* examples above / PFP (Profile Picture) NFTs *
How do NFTs work?
NFTs are a subset of blockchain technology used specifically for digital assets. The blockchain is basically a digital ledger that keeps track of a variety of transactions. The blockchain is decentralized and does not rely on a central authority or server. Instead, it relies on a network of computers or nodes which are operated by different people or entities. The nodes that participate in the blockchain network are also known as miners.
The question: How do NFTs work? is extremely broad, we welcome a deeper exploration and understanding in our regular Twitter Spaces / Clubhouse rooms. Find out more
Blockchain benefits in relation to NFTs
With blockchain technology and NFTs, there are several benefits one can enjoy. First, NFTs make it easy to prove that a particular item exists and that an individual owns it. If an individual owns a token that represents a unique asset, then they can show that token to prove that they own that unique asset. Second, using NFTs can help prevent the duplication of items. If a person owns a token that represents a unique object, then the same token cannot be used to represent a different asset. This prevents duplication of items and makes it easier to verify authenticity. It also makes it easier to maintain records since it is easier to track who owns what.
Creating or buying NFTs can be frustrating, many people find it difficult to understand the how? However, as soon as the friction is lessened and the user journey through to adoption is simplified, society will suddenly realise the enormous potential for blockchain and NFTs.
And when ‘the mainstream’ understands the endless scenarios of innovation but specifically… Imagine a government fully accountable on a transparent audited ledger of finances. What each individual district spends, every penny or cent! Creating community voting mechanisms, validating and cross referencing (using AI) every single decision and variable. The list of opportunity is endless, but the most powerful would be eliminating corruption. With Blockchain and associated Web3 technology, this, for the first time in human history, is now possible.
The future of blockchain will likely result in people using NFTs every day without even realizing it. Although, we would recommend exploring the community here and on YouTube university.
