Posschain Empowers NFTs Capabilities
Non-fungible tokens, or NFTs for short, are all the hype in the blockchain space right now. During the COVID-19 global quarantines, they gained a lot of attention by giving artists worldwide the chance to preserve and market their artworks online. The question is, are there more to NFTs, and is the hype around them justified? This article will examine how NFTs are used in blockchain and whether the hype around NFTs is justified.
An immutable token, or NFT, can represent anything digitally. This may include data, information, a real-world object, clothing, music, or artwork. These non-tradable tokens are unique and are the original copy of the item they represent. Unlike most cryptocurrencies, they cannot be exchanged for another coin in the same cryptocurrency. For example, one Bitcoin coin can be exchanged for another. This is why a Bitcoin or any other cryptocurrency is called tradable money, and an NFT is not tradable.
Now that we’ve covered why NFTs are unchangeable let’s look at the pioneering technology that makes NFTs possible; blockchain technology.
What is Blockchain Technology?
As mentioned, blockchain technology is the technology that makes NFTs possible. So what exactly is blockchain? A blockchain is a decentralized digital ledger. This means that the control and maintenance of a blockchain is not the responsibility of a handful of people or a central entity such as an organization or an individual. Instead, a blockchain is powered by the people who use it! Every person operating a blockchain and running a computer on the network makes a blockchain a distributed and global network.
This is a high-level overview of a blockchain, but we must review it to understand how NFTs arise. Using the privacy, transparency, autonomy, and decentralization of blockchain technology, NFTs can represent everything digitally, verify ownership of these digital representations, and make transferable achievements that were very difficult to achieve before the invention of blockchain technology.
Now the part you’re waiting for is why the hype behind NFTs?
As the art began to evolve into NFTs, the hype around NFTs started. When that happened, it brought the relatively large collector’s market into the blockchain space. It has also contributed to the existing speculator market of cryptocurrency and blockchain. Art speculators and collectors worldwide can now collect, buy and sell artworks on the blockchain network. They can also do this anonymously and securely and verify that the artwork is theirs. Before blockchain technology, all of this was considered extremely difficult, if not impossible.
After NFTs made their way into the art world, companies began to explore what else NFTs could be used for. This is one of the factors that contribute to the creation of a metadata warehouse. In-game assets can now be transferred using NFTs. So anyone can buy, trade, and sell in-game purchases with other players in the metastore. This transferability of in-game assets introduced the win-win space to the world. So now anyone can play blockchain-powered games and earn money from them.
As you can see, the creation of NFTs had a snowball effect. From stepping into the world of art and giving artists a way to earn money for their work during quarantine to now providing everyone worldwide the opportunity to win by playing games in a play-to-win space. Innovation around NFTs has been a focus for most companies in the blockchain space as they are keen to perpetuate the hype around NFTs.
Is the Hype Around NFTs Justified?
To determine if any hype in the blockchain and cryptocurrency space is justified, look at the utility around what’s being exaggerated. With that in mind, NFTs have solved a big problem in the art world. They offer artists an online platform where their artworks cannot be copied worldwide. On this online platform, artists can reach a broader audience in art speculation and collectibles and verify that the artwork they publish is authentic. This scenario on its own gives NFTs a lot of benefits.
The utility of NFTs is further extended in the play-to-win space. People can now play blockchain-powered games and get paid for them. This is mainly done by trading in-game assets in these games, which are all NFT. The timing of the play-to-win zone debut was perfect as it was during the COVID-19 pandemic. People worldwide lost their jobs due to COVID-19, so they turned to NFTs and blockchain games to make money and were not disappointed.
Another essential fact about NFTs is that they are slowly becoming the new blockchain-enabled store of value. Before NFTs, most prominent public blockchains were used as a store of value, as people transferred some of their fiat currency values to cryptocurrencies such as Bitcoin and Ethereum. However, the price of NFT in-game assets is now less volatile than these significant cryptocurrencies. This makes NFT in-game assets a more stable store of value.
As you can see, the utility of NFTs is already there. With the intense innovation and discovery around NFTs, their use will only continue to increase. Maybe the hype around NFTs is a bit too much for the utility the technology currently has. Still, the market is always excited about new technologies that have potential. If the current rate of innovation around NFTs continues, we may see the small gap between the utility of the technology and the hype closing.
Posschain Will Contribute to the Benefit of NFTs
Posschain is a revolutionary blockchain ecosystem. The team behind the project is engaged in extensive research into ways in which the use of NFTs can be expanded. The team is creating its own blockchain-powered game to explore the potential of the technology entirely. In this game, NFTs will be used in new and innovative ways! The Posschain team also looks at NFTuse cases far beyond blockchain-powered games.