What is NFT? How can NFT change the world?

What is NFT? How does it change the world in individuals aspect of our life? Let’s find out about the technology in this article

What is NFT?

Although this digital asset is becoming popular, it requires more research and monitoring from investors and lawmakers to identify the relationship between NFT and the digital economy.

In recent 3-4 years, digital transformation and the digital economy have become many countries’ targets. Accordingly, the digital economy is the application of technological advances to economic development and the result of Industry 4.0 and digital transformation.

NFT (Non-fungible token) is a digital asset with distinguished features.

The Oxford Digital Economy Collaboration Group defines: “Digital economy is an economy that operates based on digital technology, especially electronic transactions conducted through the Internet”.

At the Vietnam Private Sector Economic Forum 2019, the digital economy was defined as “all economic activities based on digital platforms and new business models created from the application of digital technology and data”.

NFTs are known for their uniqueness, non-interchangeability, and scarcity. NFT is considered an example of blockchain technology’s impact on life beyond the financial markets. Each minted NFT token has a unique identifier, an owner, and can’t be directly interchangeable with other tokens.

NFT is commonly used in digital content, including music, art, and drawings. NFT powers the creator economy, where they don’t transfer ownership of their content to the platform but make it public. When a creator/owner sells their content, the money is transferred directly to them.

Even if the new owner sells the NFT later, the original creator can still automatically receive royalties. This is not possible with traditional ways of protecting intellectual property. It not only increases income for products that were previously underappreciated but also promotes and raises public awareness of copyright issues.

Many projects have researched the coding of real estate, fashion products, and significant antique publications.

Related: What is Play to Earn? Play Games for Money & Future Trends

How can NTF change the world?

The conventional benefits of NFT are mainly due to the inherent features of blockchain, such as immutability, free issuance, ease of encryption, fast settlement, and the ability to exchange assets between users. These features offer a wide range of benefits to individual users, specifically the creators and collectors.

For creators, the artists, and publishers of unique assets, NFT protects their copyrights and offers programs that pay royalties by reselling their work on the secondary market. NFT also leverages blockchain technology to skip the intermediaries and facilitate any creator who wants to publish their work globally.

For collectors, the NFT serves as a certificate of “ownership” to the original work or an investment property that can be resold for a profit. Most importantly, collectors can support their favorite creators directly with fast and traceable transactions.

Related: What is Tokenomics? Everythings that crypto beginners must know

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Disclaimer: This article is for informational purposes only, not investment advice. Investor should research carefully before making decision. We are not responsible for your investment decision

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