It’s undeniable that non-fungible tokens are a completely new digital asset type. And the marketplace operates in extremes – there are many highlights in the form of NFT auctions that reach millions of dollars, while on the other hand, plenty of NFTs are also selling for less than one hundred dollars. Whether you are thinking about creating or buying NFTs, it’s no surprise that you might be wondering about the possible factors that drive the value of NFTs and what the benefits of NFTs are. Keep reading to find out more about some of the main benefits of NFTs.
The proof of ownership is the main advantage of non-fungible tokens. Since NFTs operate on a blockchain network, they can associate ownership to a single account. And most importantly, NFTs are indivisible, meaning that they cannot be distributed among several owners. Along with this, the ownership advantages of NFTs mean that buyers are protected from fake NFTs.
While some critics have said that you could simply take a photo or a screenshot of NFTs and sell them, the main thing to know is that in this case, you still do not own the asset. For example, there are lots of images of the Mona Lisa available online to download but downloading a photo doesn’t mean you own the artwork. With an NFT, it’s ensured that you own the real thing, no matter how many pictures are taken of it. Get started with buying NFTs at okx.com.
Until now, NFT pros mainly focused on their fundamental traits. NFTs have a wide range of applications in the digital content domain, and the fragmented nature of the industry is one of the main reasons behind the feasibility of NFTs in the digital content world. Content creators often encounter several concerns when it comes to platforms taking their profits and earning potential. For example, if a digital artist published their content on social media, the platform would also make money selling ads. On the other hand, NFTs are leading to the growth and development of a new creator economy, focused on helping content creators avoid the need to transfer ownership to platforms that they use to publicize content.
The uniqueness of the tokens is the main thing that the benefits of NFTs rely on. NFTs are created on the blockchain, therefore they are associated with unique records. Since NFTs have unique traits, this showcases their value contributing potential. Along with this, those who create NFTs also have the advantage of only issuing a certain number of NFTs, which introduces supply scarcity. For some NFTs, creators may choose to create multiple replicas, for example, with tickets. On the other hand, the blockchain on which NFTs are stored will also provide authenticity assurance. Blockchain-based NFTs have an immutability that ensures that they are immune to removal, modification or replacement.
NFTs are a fairly new type of digital asset, but they are growing rapidly. With some selling for millions while others go for more reasonable prices, it’s clear to see why NFT popularity is growing with these main benefits.