- Being unique cryptographic tokens, NFTs’ popularity has reached crazy new heights, with the growth of the new breed of crypto-rich billionaires.
- They focus on removing intermediaries and transforming value proposition for their creators.
- However, NFTs must work on their speculative nature to become the next big thing while talking about the digital revolution.
NFTs or Non-Fungible Tokens are touted as the next big thing in the world of cryptos. Simply put, NFTs can be anything digital like art, music, collectible, in-game items and many more.
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These are traded online, and most NFTs are part of the Ethereum blockchain, encoded within smart contracts.
Being cryptographic tokens, NFTs represent a unique asset on the blockchain and aren’t interchangeable.
What is the reason behind the huge popularity of NFTs?
Of late, with the explosion of blockchain technology, NFTs have become a new trend, underpinned by the growth of crypto-rich billionaires and deep-pocketed investors.
In fact, owning a piece of digital art is slowly making its way to the mainstream culture and is even becoming a status symbol among the rich and the mighty.
One of the main reasons for the hype around NFTs is they focus on removing intermediaries and transforming the value proposition for creators instead of enlisting a particular record label, publisher, etc., to monetise creative works.
Is the NFT trend here to stay?
Though currently, the NFT trend is spectacular, whether it is just a bubble or will cement itself in the future is a big question.
Analysts opine that research on NFTs is still very limited, centred around technical aspects like protocols, copyright regulations, components, and the impact which NFTs have on the digital world regarding royalties, etc.
Moreover, people have limited access to NFT collections like Cryptopunks, CryptoKitties, and Axie.
Further, a plethora of NFTs in digital games have caused a significant decline in their value, thereby leading to more speculation in the NFT market.
On the other hand, many tech-savvy investors consider NFTs as the first breakaway digital asset with a standing of its own, prices of which are not dependent on other cryptocurrencies.
Though the popularity of Non-Fungible Tokens is groundbreaking and is aiming to revolutionalise the gaming world, these NFTs must overcome their speculative nature so as to make a lasting impact.