Non-fungible tokens are considered as an evolution of cryptocurrencies and both of these technological advancements use almost similar technology. NFTs have revolutionized the financial systems and global payment regime. They are highly decentralized and deregulated schemes of finance and trade. NFTs can be used :
- Buying and selling of real estate
- Lending and crediting schemes
- Digital representation of physical assets
- Contracts and agreements
- Artworks and illustrations
- Digital creations
The most unique benefit of non-fungible tokens is that they remove all intermediaries and brokers in trade. They just streamline the process and remove any traditional and non-traditional barriers in trade. NFTs are not regulated by the governments so they present the owner an opportunity to work independently of bureaucracy. The efficiency and effectiveness the NFTs entail enable the people to become masters of their destiny.
Although the capitalist vision of the market is non-interference of government in it, governments around the world regulate the market to some extent. This creates hurdles in the free flow of capital and the market. Non-fungible tokens are the solution to come out of this quagmire and make the market more efficient and free of government influence.
NFTs are also extremely useful for tracking and identity management. The prevailing barriers and data management problems of large-scale trade give the policy makers much headache. The solution to this is the non-fungible tokens. Through them, it is possible to streamline these processes for effective public service delivery. They can prove to be excellent and viable merchandise for all the challenges of the pre-crypto world.
Non-fungible tokens can also democratize the decision-making process while solving complex problems. It is much easier to divide digital assets to their rightful owners. For example, artwork can have multiple owners and it is distributed digitally to the owners. On the contrary, the physical possession of such artwork is only possible with a single owner. Also, it is difficult to distribute it if it has multiple owners. Such digital arrangements using NFTs can be more profitable and long-lasting. Here is the list of top five NFT projects that have earned millions for dollars so far
- Axie Infinity: a Vietnamese non-fungible token based online game developed by Sky Mavis.
- Decentraland: the visual destination for digital assets like real estates, avatars, wearables and names.
- CryptoPunks: it includes 10000 uniquely generated characters that can be owned using NFTs.
- Gods Unchained: gives permanent and complete ownership of the players and in-games items.
- The Sandbox: crypto metaverse which views land as piece of sandbox and provides access to exclusive content and grant permission to monetize ones content
Non-fungible tokens have quietly revolutionized the virtual world and they are becoming increasingly popular with the time. People are investing heavily in these digital platforms and they have earned thousands of dollars. It is becoming fashionable to own an NFT based digital asset. The future belongs to crypto and NFT.