The idea behind the emergence of NFT is that creators of digital assets can own a piece of that content. However, critics of this concept warn that this type of currency is a bubble. You may soon regret your decision to purchase rare video clips and weird GIFs. In contrast, paintings and other collectibles hold their value thanks to their artistry and established audience. Hence, NFTs could become valuable assets for investors.
A digital image can be stored in the blockchain, and it is a form of NFT. The blockchain entry clearly tells whom created the NFT, which makes it difficult for others to copy the asset. For instance, if a famous musician creates a NFT of a song and wants the world to hear it, he can easily verify the blockchain address of his music. However, many people are confused about the differences between a fungible and a non-fungible token.
The emergence of NFTs has created new opportunities for those in the art and design industries. While they are still relatively new on the market, they are likely to become a major player. Currently, they serve as an excellent way to monetize digital assets. The NFT system solves a common problem, which is the proliferation of counterfeit artwork. The value of an art work stems from its uniqueness and irreplaceability. With the proliferation of copies, it is no wonder that art has become a major industry.