Before we ask the question of what you can do with an NFT, first let us figure out what an NFT is. An NFT is a digital asset that is used to represent real-world objects such as music, art, in-game items, or even videos. They are bought and sold online, usually through cryptocurrency, and they are generally encoded with the same underlying software as many cryptos. But are NFTs worth the money – or the hype? In this article, we hope to give you a general idea of the applications that an NFT can have, and whether it is worth it or not for you to actually invest in this recent technology.
What are NFTs Used For?
NFTs and Blockchain technology allows artists and content creators a unique opportunity to monetize their wares. For instance, an artist does not only have to rely on galleries or auction houses to sell their art. Instead, they can directly sell it to a consumer as an NFT, which also allows them to keep more of the profits that they gain. In addition, an artist can program in royalties so they receive a percentage of a sale whenever their art is sold to a new owner. This is an especially lucrative feature as artists generally do not receive future profits after their art is first sold.
In addition to NFTs helping artists, NFTs can be seen as a collector’s item. They can hold the same appeal as trading baseball cards or comic books. Since each NFT comes with its own unique contract, counterfeiting is literally impossible with NFTs, meaning that an NFT you own will be the verified original. This also increases the credibility of NFTs that you have and can make it more valuable to collectors, who know that they are not being ripped off with a fake instead of the real source. One example of NFTs being a collector’s item is Jack Dorsey’s first tweet, in which he signed and verified the NFT, making it a virtual autograph forever imprinting the digital assets with a mark of his identity. And, in so doing, it appealed to the collectability and the value of the NFT.
NFTs can also open doors for you and make you able to join an exclusive community. For example, by buying an NFT from the Bored Ape Yacht Club, a collection of 10,000 extremely demanded and highly-priced Bored Ape NFTs, you are not simply buying a rare piece of art. You are also gaining membership access to a club whose benefits increase over time and can serve as your digital identity, and open previously unlocked digital doors for you. Being a member of the Bored Ape Yacht Club allows you to do many things other non-members cannot, such as being part of the Bored Ape Yacht Club Bathroom. This feature allows you to be a part of a canvas accessible only to wallets containing at least one ape. Each ape-holder will be able to paint a pixel on the bathroom wall every fifteen minutes. This allows ape-holders to leave a digital mark in a collaborative art experiment for the crypto sphere. While this is only one example of membership that can be gained from purchasing an NFT, there are plenty of other NFTs that can gain you access to a private community.
How do NFTs have value when I can simply Screenshot them?
Many people say that NFTs are dumb as they can simply screenshot an NFT artwork, which allows them to technically have the image for free. While this may be the case, does googling and saving an image of the Mona Lisa by Leonardo de Vinci make you a proud owner of a multi-million dollar piece of art? Essentially, owning the real thing is as valuable as the market makes it to be. The more a piece is shared and discussed, the more value it tends to gain. Owning the verifiably real thing will always have more value than simply having a screenshot of that thing.
The use that you can have with NFTs is what you make of it. While there were many uses of NFTs explored in this article such as selling artwork in a more profitable way, owning a popular collector’s item, or accessing a private community, there are certainly more uses that an NFT can have. Ultimately, the use of an NFT is what you make of it, and depending on your goals and values, you should make your own educated decision on whether you want to invest in this latest trend.