What are NFTs?

You may have heard of a new term, NFT. It stands for non-fungible tokens. NFTs are certificates of authenticity for digital assets.

NFT expert and founder of Hungry Wolves, a gamified NFT collection, Adam Hollander explained NFT with a metaphor. Think of it this way! Imagine you walk into a museum and you see a painting on the wall, now you can take out your phone and take a picture, or go to the gift shop and get a print of it – but neither of those would be worth very much. The reason that the painting on the wall in the museum is worth so much is that it’s the original, and that’s easy to prove.

But, when it comes to digital images, it’s very difficult to tell the difference between the original and copies, and that’s because when you copy a digital file it’s indiscernible from the original. But, as Hollander explains, if the original image is made into an NFT, it can be tracked, ownership can be proven, and it holds value.

“When an artist, or a company, or a person creates an NFT and then gives it to you or sells it to you, you can forever prove that you are the owner of that asset and that you are holding the authentic copy that came from that point of origin,” explained Hollander.

And, Hollander says NFTs do not strictly apply to digital images. They can be applied to any sort of digital asset. They can serve as access to online communities or virtual reality experiences.

And, as society moves closer and closer to a more experiential digital landscape.. or the Metaverse…people are beginning to be more concerned about how they are represented and even authenticated​ online.

“So the same way you might buy an expensive watch or a nice car to flex in the real world, some people are starting to buy very expensive NFTs and use them as their profile image on Twitter or Instagram or TikTok or other social media platforms,” Hollander said.

By the way, you can think of social media platforms like Facebook or Twitter as the first iterations of the Metaverse: where you go online to interact with others.

The Metaverse will be more immersive, where you put on a Virtual Reality headset, and it looks and feels like you’re inside a digital landscape.

And, NFTs will be an important building block to the Metaverse because they will be your personal belongings; such as clothes, cars, or even a house, and you can prove ownership of them, and even buy, sell, or trade them.

Follow Adam Hollander, to learn more about his not-for-profit project to help educate and give people an entry point into the world of NFTs.

Published By : KX News


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