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Are Non Fungible Tokens the future?


Nepalnews
2021 Nov 29, 14:53, Kathmandu

While 'Non Fungible Tokens' (NFTs) are not cryptocurrencies, they are units of data that can be sold, traded and is maintained on a digital ledger called a blockchain. NFT can be linked to a digital or physical asset, a file or a physical object, as well as a license to use that asset for a certain purpose.

On digital markets, an NFT along with the associated license to use, copy, or display asset can be bought and sold. So, it can take different forms such as art, music, videogame collectibles, trading cards or even memes. NFTs can be bought with crypto currency but as they are not cryptocurrencies it can be legally owned by people in countries with a ban on crypto like Nepal, China, India, Egypt, Iran, Russia and many more.

While the Nepalese Government has banned all forms of crypto currency, NFTs are not Crypto they are completely legal to own. As versions of the original data are not limited to the NFT's holder it can be duplicated and shared just like any other file. NFT is almost like owning the copyright to a digital data form which can take on many forms as stated above.

Some groups have traditionally established communities around their possessions with NFTs. And the blockchain technology can be used to provide a public proof of ownership for the NFT. NFTs are distinguished from blockchain crypto currencies like Bit coin or Ether by their lack of interchangeability (fungibility).

One can own NFTs by buying it with crypto currency or trading it with NFTs, itself. A non-fungible token's price indicates demand for the token's value and the majority of NFT markets operate similarly to an auction house. You put a bid and wait to see if you are the winner of the NFT of your choice and some sites also include 'Purchase Now' options where NFTs are sold for a set price, similar to Amazon or any other online store.

Something to keep in mind concerning NFT marketplaces is that pricing are frequently listed in ethers and due to the volatility of the crypto currency trading price at any one time, its dollar value can vary often. Hence, the reason why mostly all NFT markets require users to buy non-fungible tokens with the Ethereum block chain's currency, ether which most NFTs are based on.

NFT blockchain Non Fungible Tokens cryptocurrency Crypto Bitcoin Future technology digital
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