Why 2021 will be the year of non-fungible tokens (NFTs)

The cryptocurrency sector has seen a huge amount of interest over the past few years.

In particular since the beginning of 2020 there have been so many instances of large traditional institutions
taking more than an active interest in the crypto space by investing huge sums of money and resources.

However, the amount of interest shown in the market for Non-Fungible Tokens, (NFTs),
particularly during 2021, even surpasses that of crypto in many instances. There is no doubt that NFT trends in 2021 are growing.

So what are NFTs ?.....

Non-fungible tokens aren't actual cryptocurrencies in the same sense as Bitcoin, Ethereum, Litecoin etc.
Simply put a non-fungible token (NFT) is a piece of data stored on a ledger (also referred to as blockchain) that verifies a digital asset.

Cryptocurrencies also utilize a blockchain for its ability to track financial transactions between parties and have been designed as a type of digital currency for use on the internet and in a digital world 

NFTs built on a blockchain are used to guarantee ownership of an asset.

Think of it as a certificate, like a vehicle or property title stating the legal owner of a car or home, except that an NFT is proof of ownership in digital form.

Most NFTs are based on the Ethereum blockchain network.
An NFT is a unique asset that is not directly replaceable with another asset (thus the name "non-fungible").

A fungible token, by contrast, is one that is replaceable with another one identical to it.
Fungible token examples…..

ETH is the fungible token that trades on the Ethereum network, meaning one ETH is identical to another. The same goes for Bitcoin. One Bitcoin can be exchanged for another Bitcoin because they have the same value.

Physical currencies work this way, too. One pound sterling is the same as another pound sterling.

By contrast….. Each NFT is unique, there isn't another one exactly like it out there.

An NFT can represent any digital creation: music, videos, writing, etc.
Digital code is written into this digital token and recorded using the blockchain network it's based on (again, usually on Ethereum). It proves a list of historical ownership, and the current owner of a unique digital asset.

So now that we know that an NFT is a piece of unique data stored on a de-centralised ledger, in other words 'a blockchain'. It confirms this digital asset.

Here's a Non Fungible Tokens list of platforms where NFTs can be bought and sold

NFTs are bought and sold on online marketplaces. There are many marketplaces to buy and sell NFTs. Depending on which marketplace you choose, you’ll be able to purchase different types of art or collectibles.

Some of the top platforms to consider are.....

- OpenSea
- Rarible
- Nifty Gateway
- Circle
- SuperRare
- NBA Top Shot

A great way to enforce digital copyright and trademark law

As already mentioned, NFTs are now being used as digital assets in digital art collections.

The big example so far was in March 2021, with an NFT representing an image entitled "Everydays: The First 5,000 Days," by artist Beeple was auctioned off by Christie's for £50 million (shown here).

The purchaser of the NFT now has ownership of the digital art attached to it. Outside the realm of collectors' items (a form of modern fine art speculation), or other collectibles in the entertainment or sporting arena, NFTs could have some very practical, everyday use and value.

Think of this…. What about physical assets such as cars or property?

Think of these Non Fungible Tokens use cases....

Blockchain-based tokens could be used to guarantee ownership of physical property and cut out expensive intermediaries who traditionally handle titling services and related legal documentation.

NFTs could be a very important technological development.

We are now in a digital era that blurs the lines between the physical and virtual worlds. This new way of confirming ownership and   distribution online will be increasingly important.

How about NFTs with blockchain-based tokens disrupting  various sectors?

The implementation of NFTs could see 'middlemen' disappear (imagine no Estate Agents!) and also lower the cost of buying and selling big-ticket items like cars, land, property and even antiques !

Not only that.....

Adoption of cryptocurrencies will probably be assisted by NFTs....

Some of the worlds largest video game development companies are now looking at NFT technology for upcoming game developments. This will most likely take the form of in-game items that can be purchased by gamers.

Given that the video gaming industry is bigger than the movie and music industries combined, this development is huge for the future of cryptocurrency   adoption. It's just a matter of time.

This means millions of gamers worldwide, who may or may not already own cryptocurrency, will now be getting involved in the crypto economy.

This will have a massive impact on adoption, and possible prices of cryptocurrencies over the years ahead.

It's still very early days for NFTs, though, with more applications emerging over the coming months and years the future for crypto and NFTs could be incredible !

NFTs - A bubble or here for the longer term? - What is the future for Non-Fungible Tokens?

Right now most NFTs are used to sell digital art and collectibles. This may be a fad, or it could continue to be the new form of exchanging collectible assets ranging from trading cards to artwork. In the future, NFTs could be used to tokenize any real world asset, making ownership of assets transparent and incorruptible.

Your Crypto Coach believes this is where the future lies.

Non-fungible tokens could be extremely valuable for real estate deeds, vehicle titles and business ownership.
It's likely that NFTs are here to stay because the possibilities and the opportunities of them are endless, and go way beyond art, celebrity tweets or sporting memorabilia.

The future of NFTs lies in business applications, as the true power of NFTs is providing authentication and facilitating the transfer of ownership. All stored on the blockchain, which in many cases will be the Ethereum network. Thus, you can tokenize a bottle of wine, a Gucci bag, a property, vehicle or any physical or digital asset that is deemed unique.

It is for this reason that NFTs have only just scratched the surface.

Your Crypto Coach believes that exciting times lie ahead for NFTs and the impact they are going to have

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