Those who are familiar with NFTs or also known as non-fungible tokens know how currently popular they are. On the other hand, there are people who’ve never heard of them, or even if they did, they are not too sure what NFTs represent.
So what are they really? Basically, they represent unique digital art assets that are normally purchased by investors on the blockchain. Non-fungible tokens can include practically any form of art that can be used in digital form as well, such as video, music, pictures, memes, or a combination of different media.
The blockchain is here to confirm that a certain item is unique, hence, cannot be duplicated, which is why the term “non-fungible” is here. Many people have become huge collectors of NFTs, but is it worth it? Below you’ll get the answer!
Pros And Cons Of Having NFTs
You Can Actually Own Something That’s Digital
This is for sure one of the most common questions when it comes to NFTs. It’s all because up until recently the situation with digital ownership was drastically different than it is right now. It is widely known that digital art wasn’t valued and perceived in the same way as physical art.
At least that was the case with the collectors. For instance, if you owned something that was designed by some of the biggest names in the world of art in digital form, then nobody would ever appreciate it in the same way as they would if it was in the physical form.
Why is that? Well, it’s because a lot of people back then were having huge issues with digitization because in the past it was quite easy to copy practically any digital file, especially if it was already online and it was hard to determine whether that particular piece was authentic or not.
Fortunately, NFTs have changed things for the better, which is one of the reasons why a lot of people have changed their minds and decided to start collecting them. Namely, for the first time ever, now verifiable ownership of original digital assets is really possible.
The one who created it, the current owner, and the whole transaction history of non-fungible tokens is actually visible on the blockchain, which means that nobody can copy these tokens anymore.
Furthermore, they also cannot be modified or replicated in any way. Today you can freely own any form of digital art in the same way you own an original physical artwork without experiencing any issues with digitization and this is all thanks to the NFTs.
It Supports Talented Artists
Now, this may not be directly linked to the owners of NFTs but it surely is a positive thing. Passionate NFTs lovers at jungle want to accentuate the fact that this whole non-fungible tokens system is decentralized and enables both creators and collectors to directly exchange with one another. What’s great about this whole process is the fact that the authentication can quickly be performed by simply looking at the blockchain, and the royalties are immediately split by smart contracts.
This just goes to show that during this whole trade process there aren’t any barriers to entry and no authenticators or galleries who will do anything they can to make a profit from talented creators.
Furthermore, these creative people are going to be able to secure royalties from every single sale they’ve made throughout their life, which means that people should support them by purchasing NFTs if they can.
Non-Fungible Tokens Can Speed Up Adoption Of Blockchain Technology
It seems like both blockchain and NFTs have some promising real-world applications. Namely, they can be employed to streamline verification of numerous things, such as real estate transactions, documents, and at the same time, bring transparency in places that do not have high-quality institutional controls.
What’s interesting is the fact that San Marino utilizes non-fungible tokens as COVID-19 vaccine passports due to the fact that they cannot be falsified and can easily be traced. Furthermore, even the UN perceives blockchain technology as a way to drive sustainable development and trace aid resource allocation in developing countries.
Moreover, there are a plethora of applications for blockchain technology that can significantly enhance some things in the world, however, a lot of them haven’t been actualized due to the fact that this type of technology is still relatively new and unknown to many people.
Now, people who collect NFTs are actually supporting this technology and can in some way motivate institutions and governments to eventually adopt it as something that’s beneficial.
Collect NFTs If You Love Something That’s 100% Authentic
This was already mentioned above, but it doesn’t hurt to remind you about it. For those of you who didn’t know, physical collectibles have various types of authentication mechanisms and none of them are very effective.
Unfortunately, a lot of eminent art appraisers can confirm this fact, however, that’s not the case with NFTs, since it is cemented on the blockchain.
Disadvantage – NFTs Not Good For The Environment
Those who do not particularly care for planet Earth can easily skip this part, however, if you are not one of those people then you should pay attention to it. The truth is, cryptocurrency has impacted our world in many ways.
Negative things that have occurred because of it cannot simply be overlooked, especially knowing the fact that this whole industry is negatively affecting our environment. Bear in mind that computers that produce the blockchain data are continuously working at a very high capacity.
What’s interesting is the fact that two people went so far that they’ve decided to determine how much energy this type of concept really consumes. The answer was actually far from good. What they’ve figured out is the fact that it is less environmentally taxing to mine gold, copper, and platinum than it is to mine cryptocurrency.
The truth is that environmentalists are prone to slamming other industries for their negative environmental impact while forgetting what this one does.
There are so many things to love when it comes to non-fungible tokens, but that definitely doesn’t mean that we should overlook the negative sides. Just make sure to gather all the important information before you pursue anything.