NFTs are digital assets located on a public blockchain that acts as a record of ownership

Why are NFTs and why it’s getting popular?

NFTs are digital assets located on a public blockchain that acts as a record of ownership. Although anyone can view the item, only the NFT buyer has the ‘official’ status of owning it.

Unlike digital items that can be endlessly edited and recreated, each NFT has its own digital footprint, which makes it one of a kind. All kinds of digital objects such as photos, text, videos, music, and even tweets can be converted to NFT and this process is called “monetization” (yes, like in the world of cryptocurrency).

Growing popularity

The fact that NFT can give buyers a sense of “unique ownership” and “digital immortality” has opened up exciting opportunities for digital trade and engagement.

Despite being in existence since 2017, NFT’s popularity only increased in 2021. According to DappRadar, a Lithuania-based data tracking company, trading volumes of top NFT collections such as Axie Infinity, CryptoPunks, and ArtBlocks increased 300% and generated more than $1.5 billion in sales.

According to DappRadar, a Lithuania-based data tracking company, trading volumes of top NFT collections such as Axie Infinity, CryptoPunks, and ArtBlocks increased 300% and generated more than $1.5 billion in sales.

Future prospects

In a crypto world, the idea of ​​integrating NFT and e-commerce platforms has been making headlines for some time. Experts believe that due to their digital nature and long shelf life, NFTEs can play a significant role in the market with commerce and advanced products.

As mixed reality technologies mature, regular people are going to spend more and more of their time – and therefore money – in virtual environments.

Because NFTs are digital in nature, they do not involve the hassle or cost of shipping products. (Although there is a specific pricing and hosting fee that NFTs need to pay in the market as a collection).

Great opportunities await luxury brands that can offer exclusive and limited NFTs without having to worry about potential counterfeiting because consumers can’t exchange metadata on tokens.

The need for caution.

However, all good things come with some challenges. And in the case of the NFT, the issue of copyright is one. As the NFT market continues to grow, there have been cases of digital art being copied on NFT platforms, calling for tougher work on digital theft and editing.

Although some platforms such as OpenSea and Nifty Gateway give users the option to report or appeal a copyright infringement in their Terms of Service, the absence of any official trademark allows creators In today’s world of automation can be difficult.

There is also the issue of cybersecurity, as many users have reported accounts being hacked and thousands of dollars worth of NFT stolen.

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