NFT space has seen a lot during the last two years. From multiple scopes and highs in 2021 to the lows and challenges in 2022, this space has grown up. In 2023, NFT marketplaces are maturing and now it is quite evident that the platforms that are going to stay for the long run have to offer certain utilities to the users to retain their value in the market. If you are new to NFTs, or interested in understanding how they work and about the recent developments in this arena, then this article can be of great help.
NFTs stand for Non-fungible tokens and as non-fungible means, they are unique, and irreplaceable, and so are these tokens. While many people confuse NFTs with cryptocurrencies, they are poles apart. While cryptocurrencies are fungible, NFTs are not though both runs on blockchain technology.
NFTs become unique due to the digital signature that it holds. NFTs are virtual assets which are mainly some kind of artwork like videos, photos, collections of comics, games, trading cards, and other similar collectibles in the digital format.
NFTs are developed using blockchain technology which is a distributed public ledger for recording transactions. Along with the digital signature that every NFT holds which makes them unique, there is also a unique identification code in each of the NFTs. The data stored in the underlying blockchain helps in verifying the ownership of the NFTs.
The value of the NFTs is decided as per the demand and supply of the NFT. So, if the demand is high, and since each NFT is unique, the price can go up to anything. It is more or less like an auction of any physical asset where the bidder with the highest bid gets the chance to buy the asset.
The NFTs are used for different purposes which include –
If you want to invest or buy NFTs, you can do it by following the steps mentioned here. It is not a hectic process and one can buy on their own after learning the same.
In 2023, the pivotal changes and trends that the NFT space is witnessing include a structural shift like these tokens. They are becoming highly usable for benefiting the users and increasing their value and retaining the same.
Recently, Psychedelics Anonymous, a Web3 brand which is mainly focused on NFTs, launched its merchandise chain which needs NFTs from its collections for buying the apparel.
Recently many well-known brands are using NFTs to publicise their company and brand. Starbucks is one of the new names in this list who are using NFTs for a reward program for their customers. The customers can take part in the events, games and other online programs and earn rewards which are called “journey stamps”.
Along with these developments, awareness about NFTs, web3, and blockchain is also picking up which is playing another role in the growth of NFTs.
To conclude, it can be said that it is just the beginning of something which is the future of creativity, transactions, and investments in the new world. It is still in the nascent stage and there is a long way to go further. With growing awareness and usage of NFTs, they are becoming popular with time.