XWork – NFT or Non Fungible Tokens is a digital asset that can represent a real or digital digital item with a very broad form. Starting from the form of certain collectible cards to virtual real estate , and even sneakers that are collected in digital form.
So, what is the full meaning of Non Fungible Tokens ? What are the advantages of having Non Fungible Tokens ? What is the purpose of making Non Fungible Tokens ? Get the answer by reading the article on Non Fungible Tokens below to the end.
What are Fungible and Non Fungible ?
Basically, the meaning of fungible is commensurate. Well, Non Fungible Tokens are tokens whose value is commensurate. Examples of fungible assets are gold, dollars, casino chips, Bitcoin, and Ethereum.
These various assets have relatively the same value. If we exchange it with other assets, then the six assets have a fixed value.
For example, let’s say Hilda borrows Rp. 1,000,000 from Chika. Then, Hilda also paid off her debt by using gold which has a value or price equivalent to the debt. Well, the gold can be accepted by Chika because it has the same value.
So, what about Non Fungible assets or assets that are not worth it? These mismatched assets tend to be more difficult to exchange, because their values vary from one to another. It is very difficult to combine two assets with different shapes.
Some examples of Non Fungible assets are paintings, trademarks , houses, online game levels, and others. You will find it difficult to exchange one asset for another if the shape is different because the value is not commensurate. Each asset has its own value, for that we call it Non Fungible or not worth it.
So What Are Non Fungible Tokens ?
Just as the name suggests, Non Fungible Tokens or NFTs have the form of a token. In this case, the token in question is a digital certificate that can be stored in a database that is distributed securely under the name blockchain.
Well, Non Fungible Tokens are digital assets that have been verified and have value in the blockchain itself. We can use NFT as digital artwork, play online games, visual land or real estate, finance, digital collections, and much more.
It is estimated that NFT will continue to develop and will always be used in the future. For that, we must know its meaning better, especially for those of you who are interested in entering the digital world. Because, current technological developments will continue to grow rapidly and there will always be changes.
NFT has become very popular among cryptocurrency users and similar companies. This is because NFT is able to provide big changes in the world of games and digital assets.
It is recorded that there are at least hundreds of millions of dollars needed for the development of NFT from 2017. This is done because blockchain technology is getting faster.
Besides being able to be used to buy and also collect NFT, every crypto user can also create and manage structures in the game that they can earn money.
Advantages of Having Non Fungible Tokens
The most obvious advantage of owning Non Fungible Tokens is their uniqueness. For example, you collect digital cards such as Pokemon. Later, there will be many people who will ask, what’s the benefit of collecting digital cards, wouldn’t it be better if you had a physical card?
Some of the things that not many people know about digital card collections is that there is different information on each card. So, it may not be the same as the others. For that, it would be impossible to have a fake digital collection. Why? because, the original collection will be able to trace who the real owner is.
It’s the same with crypto currencies, Non Fungible Tokens still look unique. Unlike other cryptocurrencies, NFTs cannot be exchanged for other cryptocurrencies. So, even though the platforms used may be the same, NFT will always be special because of these differences.
Karakter Non Fungible Tokens
Apart from being unique, some of the characteristics contained in Non Fungible Tokens are as follows:
- Even though cryptocurrencies are on the same platform, they cannot be exchanged for other cryptocurrencies.
- It cannot be destroyed, because all NFT data will be stored in the blockchain database. Each token cannot be deleted, destroyed or replicated.
- Ownership cannot be changed. So, collectors or games that have NFT are the original owners of these assets. It no longer belongs to the company that made it.
- Can be verified safely. If you want to buy a piece of digital art, or a particular collection, then you can find out the exact creator and who the designer is. And vice versa, every asset can be verified who the owner is and the authenticity of the asset.
- It cannot be manipulated in any way. This is because NFTs can be verified and even traced to the maker and owner. So, falsifying NFT of any kind would be useless.
- Can be resold at a high price. For royalties on certain types of NFT assets, the owner can get a high price. NFT sales are not only limited to certain platforms.
The NFT maker or owner does not need an intermediary when they want to sell their NFT. Thus, there will be no need for a profit-sharing system. NFT is able to provide a definite advantage to artists as well as producers of Non Fungible Tokens .
They will be able to be creative and market their work globally without any boundaries, without intermediaries, and various other troublesome things. This will make every creator more enthusiastic in reacting.
Reasons to Buy Non Fungible Tokens
1. Has No Exchange Rate
Due to its non exchange value, it makes investing in Non Fungible Tokens seem more attractive. Thus, this makes this digital asset specifically owned by its buyers.
2. Currently Popular
Non Fungible Tokens that are traded through customers are a great way to make money today. Why? Because Non Fungible Tokens are currently very popular.
For example, let’s say an artist sells his artwork in a show for a very high price.
Various works of art that can be used as Non Fungible Tokens are videos or images that can be saved and viewed by many people. However, there is only one person who has the original version which is equipped with a digital ownership certificate and is also stored in the blockchain system.
Another example, let’s say there is a painting that is very interesting, so there are many people who duplicate the painting to sell. However, it turns out that the original painter already has a certificate of ownership of the work or someone who does have the original version of the painting itself.
Closing
That’s our full explanation of Non Fungible Tokens. So, Non Fungible Tokens are verified digital assets that have value within the blockchain itself.
There are many advantages that you can get from owning Non Fungible Tokens assets . However, no matter how big or small the profit you get, you must still record it in the company’s financial statements.
By looking at the company’s financial statements , later you will know the current financial condition of your company and can make wiser business decisions.
