What is NFT used for?
We heard a lot about the NFL. It seems to be slowly taking over the investment and stock market after Bitcoin. However, What is NTF used for? ? Let’s find out together
NFT maximizes income for YouTubers
The largest application of NFT today is in the field of digital content. That’s because this industry is broken today. Content creators see their profits and earning potential being swallowed up by platforms.
An artist who publishes works on a social network makes money for a platform that sells ads to the artist’s followers. In return, they get exposure, but exposure doesn’t pay the bills.
What is NTF used for? NFT is driving the new creator economy, where creators don’t transfer ownership of their content to the platform they use to post it. Ownership is embedded in the content itself.
When they sell their content, the money goes straight to them. If the new owner later sells the NFT, the original creator can even automatically receive royalties. This is guaranteed with every sale as the creator’s address is part of the token’s metadata – the metadata cannot be changed.
NFT and copy / paste problem
Naysayers often mention the fact that NFTs are “stupid” along with a picture they took of an NFT artwork. “Look, now I have the picture for free!” They said smugly.
Yes / Yes. But does posting a picture of Picasso’s Guernica make you the proud new owner of a multi-million dollar work of art?
In the end, owning the original is just as valuable as the market for it. The more content on the screen is captured, shared, and frequently used, the more value is captured.
Owning real things that have been tried and tested is always more valuable than not.
NFT increases the gaming potential
NFT has seen a lot of interest from game developers. NFTs can document ownership of in-game items, boost the in-game economy, and provide many benefits to players.
Many casual games allow you to purchase items that you can use in your game. However, if the item is an NFT, you can get your money back by selling it when you finish the game. You can even make a profit if the item becomes more desirable.
For game developers – as NFT publishers – they can earn royalties every time an item is resold in the open market. This creates a more win-win business model where both players and developers benefit from the secondary NFT market.
It also means that if a game is no longer maintained by the developers, the items you collected will still be yours.
In the end, the items you grind on in the game can outlast the game itself. Even if a game is no longer maintained, your items will always remain under your control. This means that in-game items become digital memorabilia and have value outside of the game.
Decentraland, a virtual reality game, even allows you to purchase NFTs that represent virtual properties that you can use as you wish.
NFT makes Ethereum addresses more memorable
The Ethereum Name Service uses NFT to give your Ethereum address a more memorable name like mywallet.eth. This means that you can ask someone to send you ETH via mywallet.eth instead of 0x123456789 ……
This works in a similar way to website domains, which makes IP addresses easier to remember. And like domains, ENS names have a value that is often based on length and relevance. With ENS, you don’t need to register a domain name to facilitate the transfer of ownership. Instead, you can trade your ENS name on the NFT market.
Our ENS names can:
Get Crypto and Other NFTs.
Point to a remote site like ethereum.eth.
Save any information, including profile information like email address and Twitter handle.
NFTs and objects
Encryption of physical objects has not yet evolved into its digital counterparts. But there are plenty of projects exploring real estate coding, unique fashion items, and more.
Since an NFT is essentially a charter, you could one day buy a car or house with ETH and get that charter in return as an NFT (in the same transaction). As things keep getting high tech, it’s not hard to imagine a world where your Ethereum wallet becomes the key to your car or home – your door is unlocked with cryptographic proof of ownership. .
With valuable assets like cars and representable real estate on Ethereum, you can use NFTs as collateral for decentralized lending. This is especially useful if you are not rich on cash or cryptocurrency but have valuable physical items.
NFT and Defi
From NFT. supported loans
There are DeFi apps that allow you to borrow money with collateral. For example, you collateralize 10 ETH so you can borrow 5000 DAI (a stable currency). This ensures that the lender is repaid – if the borrower does not return the DAI, the security is sent to the lender. However, not everyone has enough cryptocurrency to use as collateral.
Projects are beginning to explore the use of NFTs as collateral. Imagine buying a rare CryptoPunk NFT of the day – at today’s prices you could have made $ 1000. Taking this property as collateral, you can access a loan using the same rules. If you don’t return the DAI, your CryptoPunk will be sent to the lender as collateral. This could work with anything you recognize as an NFT, after all.
And that’s not difficult for Ethereum, as both worlds (NFT and DeFi) share the same infrastructure.
Segmented property rights
NFT creators can also generate “shares” for their NFTs. This gives investors and fans a chance to own a piece of the NFT without having to buy anything. This creates even more opportunities for NFT coins and collectors.
Segmented NFTs can be traded on DEXs like Uniswap, not just NFT markets. That means more buyers and sellers.
The total price of the NFT can be determined by the price of its fractions.
You have more opportunities to own and benefit from the things that are important to you. It’s hard to be valued when you own an NFT.
This is still experimental, but you can learn more about fractional NFT ownership on the following exchanges:
In theory, this would open up the possibility of doing things like owning a Picasso work. You will become a shareholder in Picasso NFT, which means that you can have a say in terms of revenue sharing, for example. Chances are that one day if you own a fraction of the NFT, you will be transferred to a Decentralized Autonomous Organization (DAO) to manage that asset.
These are Ethereum-backed institutions that allow strangers, like global shareholders of an asset, to work together safely without necessarily trusting others. Because not a cent may be spent without the consent of the group.
As mentioned earlier, this is an emerging space. NFTs, DAOs, and fractional tokens all grow at different rates. But their infrastructure all exists and can work together without any problems because they all speak the same language: ether. So let’s look at this room.
Important NOTE: All content on the website is for informational purposes only and does not constitute investment advice. Your money, the choice is yours.