Today’s digital world is flooded with words like NFTs, Blockchain, Metaverse, Ethereum, and so on. Are you worried about how these new things affect your life? And why not? After all, the internet is an impeccable part of our lives today. To answer all your questions, we are here with a post on how NFTs are building the internet of the future.
Whenever a new technology is introduced, it is mostly discouraged and framed until its true worth is seen. The same thing happened with the internet itself, which is happening with NFTs. NFTs are the building blocks of the future of the internet. The NFTs were launched in August 2015 on Ethereum Blockchain.
In this article today, we will be discussing the future of the internet and how NFTs are shaping the future internet. We will be looking into the pros and cons of the same. To understand the concept of NFT, we have to step back and understand how the internet works.
How Was The Internet Before NFTs?
The internet that is used today is the traditional one. What do you think is the main source of income from the internet? Yes, ads. If you are an artist, you upload your creation on the internet, and you get paid as more and more people view it. The ad company pays you as per the visitors. This internet has been with us since 1983. But ask yourself a question. Is your art safe on the internet? Can you sell your digital art? The answer is NO. No doubt, you are using copyright and watermarks, but still, your work is not safe. The worst part is you are not earning from your artwork but the people’s views. Your work is no longer yours once uploaded on the internet.
What do you think is the solution to this problem? NFTs were the missing piece to solve the puzzle.
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What Are NFTs?
NFT stands for Non-Fungible Tokens. It means something unique and can’t be replaced with something else. NFTs are the building blocks of the internet of the future. NFT is a certificate of ownership registered on the blockchain for everyone to see.
Let’s take an example if you own a house, you make a deal, and then you own the house’s papers. Then you can say that the house is mine. But NFTs are a step ahead. Once you mint your artwork as an NF.T on the blockchain, it is completely yours. You allow everyone to see it so that its value goes up. These NFTs are only for the internet. You can’t use them anywhere else.
How Are NFTs Building The Future Of The Internet?
These NFTs are life-saving for artists or creators. If an artist creates a digital artwork and mints it into an NFT, he can sell his artwork for the price he wishes. But his earnings do not stop here. As the number of sales increases, the creator receives compensation for his artwork every time his NFT is resold. Isn’t this a mind-blowing concept? This is similar to the royalty concept included in the smart contracts.
NFTs can be anything from software that can be programmed to music. Everything is included in NFTs. You sell your NFT, you get paid instantly. No customers, no foreign exchange, or no international wire transfers. Something that is evolving the future of the internet. The internet also dissolved the physical boundaries, while NFTs dissolved the economic boundaries. Now, an artist living in any part of the world can access every tool he needs.
NFTs are being used today, and many giant companies are showing their interest in the future of the Internet. A lot of things are going to change, make a positive impact in your life.
Also Read, NFT Vs Art: 9 Points Of Difference Between The Two
Pros And Cons Of NFTs.
Pros:
Market Growth
NFTs have reshaped the market completely. Some NFTs are being sold for unbelievable prices. Like CryptoPunks #3100 sold for $2,127. Microsoft invested 69 Billion in Metaverse.
Ownership
With the introduction of NFTs, artists can now earn from their artworks and not from ads. This is something similar to the real-world experience. No one can copy it, and no one can steal it.
Security
Ethereum blockchain or the blockchain itself guarantees the ownership of records. These NFTs are created by the minting process, just like making coins.
Excitement
Being a new technology, people are excited to join NFTs and sell their artwork. There is no fear of copyright violation, and the earnings are more because of royalties.
Also Read, 6 Best NFT Games To Own NFTs For Free
Cons:
Digital Art only
It is more like discrimination for the physical artists who are not aware of 3D modeling. NFTs are only for digital artworks.
Uncertain Value
Some NFTs in the market value are rocketing in their prices, while some are not gaining the least value. The prices are not regulated in NFT marketplaces, and you cannot predict the future of any NFT.
Gas Fees
NFT is a digital world asset. To mint it, you need to pay gas fees. This is a negative impact.
Also Read, How NFTs Harm The Environment? Is Future In Danger?
Warp up
The future of the internet is going to be way beyond our imagination. Not just NFTs, Metaverse is also designing the future of the internet. NFTs made the internet a safer place for your assets. It developed new ways of earning and new ways of selling assets. Nothing is perfect in this world, and neither are these NFTs. There are certainly some drawbacks, but these NFTs are still the building blocks of the internet of the future.
Frequently Asked Questions
Q1. Are NFTs A Good Investment?
I think the answer to this question depends on the investor. If you know the NFT marketplace well enough, then he can decide whether to invest or not and, more importantly, where to invest.
Q2. What Are NFTs Used For?
NFTs are used to represent real-world items like artwork and real estate. NFTs are unique cryptographic tokens on the blockchain and cannot be replicated.
Q3. What is the difference between NFTs and tokens?
NFTs are tokens that have unique attributes, because of which they can save you from identity theft. Token was an old concept that was later modernized by digital tokens.
Also Read, NFTs Vs Tokens | How Are They Different?
Q4. Are NFTs Cryptos?
Crypto is a digital currency that uses cryptography to secure transactions. This is a decentralized system to record transactions and issue new units.NFTs are unique tokens that can’t be replaced with something else. NFTs are unique cryptographic tokens that are available on the blockchain. NFTs represent real-world items like artwork and real estate.
