NFT is the abbreviated form for Non Fungible Tokens. Fungible means currencies that can be exchanged for one another. Physical money and crypto currencies are fungible. NFT’s are built on the same kind of programming framework (Blockchain) as crypto currencies like Ethereum or Bitcoin, but that is the extent of their similarities.
People usually confuse NFT’s with crypto currencies but that is not the case. NFT’s are basically digital assets representing real world objects like art, music, videos, in-game items etc. These assets can be sold and bought against physical money but most of the transactions are done using various crypto currencies. Since November 2017, $174 Million has been spent on NFT’s all over the world.
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BEST BLOCKCHAINS FOR TRADING NFT’s:
A number of different blockchains are being used to trade in NFT’s in UAE. These Blockchain currencies can be purchased from a multitude of crypto exchanges in UAE. Each of these currencies has its own pros and cons.
Enlisted here are the three most notable crypto currencies which can be used to trade in NFT’s:
Ether (ETH) is a crypto currency which is generated on the Ethereum platform. The platform is a completely decentralized blockchain where ETH is mined. This platform also provides self-governed smart contract writing service. Your ETH is stored in your Ethereum wallet and you can use your wallet to purchase NFT’s easily anywhere around the globe. Ethereum is currently on a market cap of $417 Billion. Check out Ethereum price in UAE to start your crypto/ NFT trading journey.
Solana is another crypto currency platform which can be used for trading your NFT’s. It is based on a scalable blockchain infrastructure. Its native currency is SOL. Solana claims to offer faster transactions and comes with the availability of smart contracts. The total market cap of Solana as of January 2022 was at $42 Billion.
Polygon is a decentralized Etheruem scaling platform. The sole purpose of this platform is to allow developers to build user-friendly, scalable dAPPS. Polygon has been set up with the clear agenda of solving the usual blockchain problems.
It is offering lowest gas fees as compared to the other competitors. It is providing relatively higher speeds without compromising the digital security of your crypto assets. Already it has over 6000 dAPPS fully onboard. Anyone looking to trade in NFT’s can opt for purchasing or selling using polygon assets.
NFT USE CASES:
As discussed above, NFT’s are digital representations of real world assets. There are a multitude of practical uses of NFT’s currently available. Here I am enlisting three of the most important uses, other than Artwork which is a common knowledge now.
- AUTHENTICITY OF PRODUCTS:
Blockchain is known for its secure storage. Once any piece of information is stored in the blockchain it cannot be misused, stolen or deleted (without the owner’s consent). This most definitely means that any information regarding any product, if stored in blockchain, can be reused anytime to verify the authenticity of the said product. NFT’s can be used to store this information, reuse it for the purpose of authentication or even make fair trade of the product.
- INTELLECTUAL PROPERTY AND PATENTS:
Another use case scenario for NFT’s is the protection of intellectual property and patents. NFT tokens allow users to prove their identity and ownership of any piece of content. This is generally impossible with normal copyrights using regular IP rights softwares. NFT owners can prove that they are the original owners of the content at any time.
- GAMING INDUSTRY:
The gaming industry and NFT’s are a match made in the heavens above. NFT’s come with the availability of integration to the gaming world, therefore allowing the gamers to access cross-platform playability. Also, in-game purchases can be made through NFT’s, reducing the risk of fraudulent transactions by middlemen.
NFT’s are a new piece in the game of digital assets and currencies. It might take some time for the users to get acquainted with this new form of digital assets. Having said that, the day is not far when the richness and poorness of people is going to be categorized according to how many crypto and NFT assets they possess. NFT’s are the future of the digital era. They are here to stay. Happy Minting.