A non-fungible token is a digital ledger datum that is unique and non-transferable. NFTs can be used to represent easily replicable goods like images, movies, audio, and other sorts of digital assets as unique items, and blockchain technology can be used to provide verified and public evidence of ownership.
NFTs have several advantages, including the ability to transform government or private-sector papers into one-of-a-kind personalized tokens. In theory, people could one day own digital documentation wallets holding driver’s licenses, immunization records, and even birth certificates issued by sovereign governments. NFTs can be used as artworks whose authenticity can be checked without the need for a central authority. Lastly, NFTs are well-suited to online video games. NFTs can allow players to purchase and keep unique virtual products like skins, armor, and weapons systems. NFTs, unlike centralized in-game purchases and microtransactions, could be generated and sold by players.
NFTs can also have harmful impacts. Because NFTs aren’t well-understood by the general public, there are certain to be con artists and con artists out there looking to profit from people’s ignorance or misunderstanding.
Negatives include purchasing NFTs with large royalty costs that return to the seller and purchasing NFTs that convey “ownership” without legal documentation or a written agreement claiming so. According to the Forbes article, “What are NFTs and Are They Here To Stay?”, Gallagher explains, “Whether we’re going to keep seeing headline-grabbing million dollar auction sales, well, that depends on whether consumers keep demanding them.” I agree with this quote because, despite the positives and negatives of NFTs, it all depends on the consumer and whether they want to continue purchasing NFTs.