NFT is recently becoming a hype in the digital art and collectibles world. The use of NFT has brought many benefits especially to digital artists. NFT stands for non-fungible token that can be used to indicate ownership of unique works or creation in any form. What are the benefits of non-fungible token ?
Ownership and authenticity
At its core, an NFT is a tool that creates non-fungible digital asset using blockchain. There are two major benefits that can be gained from this features. Primarily, NFT offers the certification of ownership. With blockchain-based NFT, the record of ownership is protected from changes or modification. This make a digital asset to only have one official owner at a time. Subsequently, consumers do not have to worry about the risk of counterfeiting.
Next is authenticity. Through NFT, digital item becomes non-fungible assets that comes with unique records. With this unique records, the assets can be maintained their value and privilege to their owner. Moreover, immutable blockchain secures NFTs from alteration, removal or replacement thus allowing NFTs to display authenticity as their valuable quality.
The trading of NFTs is based on smart contract. A smart contract is autonomous, secure, accurate and free from interruption. The use of smart contract eases the transfer of ownership of NFT as it only requires the fulfilment of specific conditions between buyer and seller according to its outline.
NFT provides opportunity for the content creators to retain their full ownership on the copyright. NFT supports the content creators to set up a smart contract when generating NFT by giving ownership on the content only. With this set-up, the original content creator will get paid when selling their content as well as getting royalty payment each time, the new owner sells their content.
To sum up, non-fungible token (NFT) is undeniably beneficial to consumers. While NFT needs more understanding through various factors such as applicability, cyber security and exploitation, it is proven to have potential in becoming a promising practice in many industry in the future.
E-SPIN Group in the enterprise ICT solution supply, consulting, project management, training and maintenance for multinational corporations and government agencies across the region E-SPIN do business. E-SPIN has been actively involved in the digital transformation (DT) initiative project consulting, training, solution supply, integration and implementation since as early as 2005. Feel free to contact E-SPIN for the various DT initiatives and requirement