NFTs (Non-Fungible Tokens) and their Impact on Digital Ownership

The
emergence
of

Non-Fungible
Tokens
(NFTs)
is
nothing
less
than
a
boon
in
the
technology-driven
era.
The
concept
of
NFTs
is
gradually
gaining
momentum
in
the
digital
landscape.
The
main
reason
for
the
immense
popularity
of
NFTs
is
that
they
allow
any
individual
to
trade,
purchase,
or
sell
digital
assets.
If
you
have
limited
knowledge
about
NFTs,
it
is
high
time
you
learned
about
these
tokens.
Within
a
short
span
of
time,
NFTs
impact
on
digital
ownership
has
been
immense.

Before
understanding
the
role
and
impact
of
NFTs
in
digital
ownership,
it
is
time
to
gain
clarity
on
non-fungible
tokens.
After
understanding
the
meaning
of
NFTs,
you
can
easily
grasp
the
connection
between
NFTs
and
Digital
Ownership.

What
are
Non-Fungible
Tokens?

You
surely
might
have
come
across
the
term
‘Non-Fungible
Tokens.’
If
you
do
not
know
what
it
means,
you
do
not
have
to
worry,
as
your
questions
will
be
answered
now.
Non-fungible
tokens,
which
are
commonly
called
NFTs,
are
unique
digital
identifiers.
They
have
been
tokenized
via
blockchain
technology.
Hence,
you
can
also
refer
to
NFTs
as

blockchain-based
tokens. 

NFT
functions
as
a
digital
certificate
indicating
ownership
and
authenticity
of
an
asset.
The
asset
could
be
virtual
or
physical.
A
key
aspect
of
Non-Fungible
Tokens
is
that
they
are
irrevocable
in
nature.
As
each
NFT
has
a
distinctive
signature,
it
is
unique
and
cannot
be
replaced.
In
the
current
era,
when
digital
as0sets
are
on
the
rise,
the
concept
of
NFTs
has
gained
immense
popularity
and
prominence. 

Get
familiar
with
the
basic
and
advanced
Non-Fungible
Token
(NFT)
terms
with
the NFT
Flashcards

NFTs
and
Cryptocurrency 

There
exists
a
single
similarity
between
Non-Fungible
Tokens
and
cryptocurrencies.
NFTs
are
developed
with
the
help
of
programming
similar
to
cryptocurrencies.
However,
NFTs
are
non-fungible,
as
their
name
suggests,
whereas
cryptocurrencies
are
fungible.
‘Fungibility’
means
that
it
is
possible
to
trade
or
exchange
something
in
exchange
for
something
else.
However,
what
makes
NFTs
unique
is
that
it
is
not
possible
to
exchange
them.
As
each
token
is
assigned
a
specific
digital
signature,
it
is
not
possible
to
exchange
them. 

How
are
NFTs
Redefining
the
Concept
of
Digital
Ownership?

In
the
digital
era,
new
kinds
of

digital
assets
are
coming
into
existence
which
had
no
previous
presence.
A
digital
asset
is
basically
anything
that
can
be
stored
virtually
or
digitally.
Moreover,
such
an
asset
comes
with
a
distinctive
usage
right.
It
implies
that
if
a
digital
asset
belongs
to
a
specific
party,
it
is
not
possible
for
others
to
use
it.
Some
of
the
common
examples
of
digital
assets
are
videos,
audio,
logos,
etc.
Due
to
the
emergence
of
new
kinds
of
digital
assets,
there
is
an
increase
in
the
need
to
protect
these
assets
from
getting
misused
by
others.
This
is
when
the
concept
of
NFTs
comes
into
the
picture. 

Lately,
NFTs
have
been
redefining
the
practice
of
digital
ownership.
These
tokens
primarily
verify
the
assets
and
give
ownership
to
the
creators.
Hence,
NFTs
empower
digital
creators
by
allowing
them
to
maintain
their
ownership
while
having
a
sense
of
control
over
their
creations.
In
current
times,
when
issues
relating
to
theft
and
misuse
of
digital
assets
have
become
common,
NFTs
tackle
these
issues
by
maintaining
recording
on
a

blockchain
network.
NFTs
impact
on
digital
ownership
has
brought
a
sigh
of
relief
to
authentic
digital
creators.

Build
your
identity
as
a
certified
blockchain
expert
with
101
Blockchains’ Blockchain
Certifications designed
to
provide
enhanced
career
prospects.

Impact
of
Non-Fungible
Tokens
on
Digital
Ownership

NFTs
in
Digital
Ownership
landscape
have
become
indispensable.
This
is
because
these
tokens
offer
a
new
and
unique
way
for
digital
creators
and
artists
to
monetize
their
work.
Thanks
to
NFTs,
they
do
not
have
to
worry
about
someone
else
using
their
creation
behind
their
back.
If
you
wish
to
become
a
digital
creator
of
any
kind
in
the
future,
you
must
know
about
NFTs
and
digital
ownership.

It
may
be
surprising
to
know
that
the
emergence
of
NFTs
has
led
to
the
revival
of
the
collectibles
market.
Non-fungible
tokens
have
been
providing
a
modern
way
of
authenticating
and
verifying
digital
collectibles.
This
trend
has
given
rise
to
new
opportunities
for
digital
creators
in
the
vast
digital
realm,
as
well
as
new
revenue
streams
for
them.
That’s
not
all!
The
rising
popularity
and
use
of
NFTs
have
also
been
attracting
collectors
who
have
a
keen
interest
in
appreciating
the
value
of
digital
scarcity.

Application
of
NFTs

It
may
come
as
a
surprise
to
you
that
the
potential
of
NFTs
is
immense.
Although
these
tokens
are
in
their
nascent
stage,
they
have
reached
unmeasurable
heights
as
they
are
full
of
promise.
NFT
digital
assets
can
be
anything,
from
objects
that
exist
in
real
life,
such
as
music
and
art,
to
objects
that
exist
in
the
virtual
world,
such
as
in-game
commodities.
Some
of
the
areas
where
non-fungible
tokens
have
made
an
impact
are
video
games,
music,
fashion,
and
art.

• 
  Video
  games 

Today,
it
has
become
quite
common
to
use
NFTs
to
represent
assets
within
video
games.
For
example,
you
can
use
NFTs
to
represent
a
virtual
weapon
that
you
own. 

It
has
become
possible
for
musicians
and
artists
to
release
their
music
in
the
form
of
NFTs.
For
instance,
they
can
release
their
content
as
a
limited
edition
and
generate
money
from
it.
 

A
few
businesses,
such
as
Nike,
have
been
taking
advantage
of
NFTs.
The
company
has
a
patent,
which
allows
an
NFT
to
be
linked
to
its
physical
products. 

Art
is
undoubtedly
one
of
the
areas
where
NFTs
have
had
a
tremendous
impact.
In
the
world
of
art,
NFTs
have
given
rise
to
new
opportunities
for
digital
art.
Digital
artists
can
sell
their
art,
such
as
animations,
images,
etc.,
by
establishing
direct
connections
with
collectors. 

Excited
to
learn
about
various
applications
of
NFT,
Check
out Presentation
on

NFT
Applications

Advantages
of
Non-Fungible
Tokens

If
you
want
to
get
a
comprehensive
insight
into
NFTs
impact
on
digital
ownership,
you
need
to
know
about
their
advantages.
By
becoming
aware
of
their
core
strengths,
you
can
derive
optimum
value
from
these
tokens.
Some
of
the
main
advantages
of
NFTs
are:

• 
  High
  reliability 

Undoubtedly,
one
of
the
main

advantages
of
using
NFTS
is
related
to
high
reliability.
As
it
is
based
on
blockchain
technology,
it
has
the
utmost
security.
You
do
not
have
to
worry
about
the
ownership
of
your
work. 

• 
  Limited
  nature 

The
scarcity
of
NFT
digital
assets
is
what
makes
them
highly
valuable.
They
are
limited
in
supply,
which
makes
them
more
unique
in
the
prevailing
digital
sphere.

• 
  Ownership 

NFTs
act
as
perfect
instruments
that
one
can
use
to
prove
ownership
of
something.
If
you
are
a
digital
artist
or
creator,
NFTs
in
Digital
Ownership
are
nothing
less
than
a
blessing.

Thanks
to
the
advantages
of
Non-Fungible
Tokens,
their
future
seems
to
be
very
bright.
You
need
to
broaden
your
knowledge
of
NFTs
and
Digital
Ownership
so
that
you
can
strategically
use
these
tokens.
NFTs
can
ensure
your
digital
creation
is
secure,
and
no
one
can
misuse
them
behind
your
back.

Excited
to
develop
an
in-depth
understanding
of
solidity’s
best
practices
and
the
tools
needed
for
developing
and
testing
an
NFT
marketplace,
Enroll
now
in
the NFT
Development
Course

Disadvantages
of
Non-Fungible
Tokens

It
is
true
that
NFTs
are
an
amazing
invention
in
the
current
era.
However,
as
everything
has
a
good
and
a
bad
side
to
it,
NFTs
have
certain
disadvantages.
You
should
know
about
the
disadvantages
and
limitations
of
NFT
digital
assets
to
understand
their
true
potential.

• 
  Illiquidity

As
the
Non-Fungible
Tokens
market
is
relatively
new,
liquidity
is
a
concern.
When
comparing
it
with
conventional
investment
markets,
NFTs
have
lower
liquidity.
Furthermore,
the
prices
of
these
tokens
are
highly
volatile,
which
escalates
liquidity
concerns.

• 
  Environment-related
  consequences 

The
creation
of
NFTs
is
possible
only
if
a
significant
volume
of
energy
is
available.
As
it
is
an
energy-intensive
process,
it
gives
rise
to
environmental
concerns. 

• 
  Absence
  of
  regulations

The
lack
of
concrete
regulations
and
rules
gives
rise
to
risks
as
well
as
uncertainties.
In
case
any
dispute
arises,
it
may
be
extremely
challenging
to
safeguard
the
rights
of
the
investors. 

If
you
are
new
to
the
digital
ownership
landscape,
the
awareness
of
the
disadvantages
of
NFTs
can
be
of
immense
help.
You
need
to
take
into
account
the
advantages
and
disadvantages
of
NFTs
before
using
them.
  

Learn
more
about
the
basics
of
NFT
(Non-Fungible
Token)
and
the
practical
implications
of
non-fungible
tokens
through NFTs
Skill
Path

Conclusion

Digital
ownership
has
undergone
a
revolutionary
change
after
the
emergence
of

Non-Fungible
Tokens.
Previously,
online
creators
and
digital
artists
had
limited
options
to
protect
their
work.
However,
NFTs
impact
on
digital
ownership
has
been
tremendous.
You
can
safeguard
assets
within
video
games,
music,
fashion,
and
art.
Within
a
short
span
of
time,
Non-Fungible
Tokens
have
made
it
possible
for
individuals
and
organizations
to
have
ownership
of
their
own
work.

NFTs
have
been
nothing
less
than
transformational
in
the
technology-driven
era.
However,
you
need
to
take
into
account
its
advantages
and
disadvantages
if
you
wish
to
derive
maximum
value
from
it.
Some
of
the
chief
advantages
of
NFTs
are
a
high
degree
of
reliability,
limited
nature,
and
ownership. 

Some
of
the
disadvantages
of
NFTs
that
you
also
need
to
bear
in
mind
are
illiquidity,
environment-related
consequences,
and
the
absence
of
regulations. 
Regardless
of
the
limitations
of
NFTs,
the
invention
has
shown
immense
promise
within
a
short
period
of
time.
In
the
future,
the
capabilities
and
features
of
non-fungible
tokens
may
get
even
better,
and
this
may
further
redefine
the
digital
ownership
setting. 

*Disclaimer:
The
article
should
not
be
taken
as,
and
is
not
intended
to
provide
any
investment
advice.
Claims
made
in
this
article
do
not
constitute
investment
advice
and
should
not
be
taken
as
such.
101
Blockchains
shall
not
be
responsible
for
any
loss
sustained
by
any
person
who
relies
on
this
article.
Do
your
own
research!