We’ve been hearing 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 go find out together
NFT maximizes income for creators
The biggest use of NFT today is in the digital content sector. That’s because that industry is broken today. Content creators see their profits and earning potential being swallowed up by platforms.
An artist who publishes work on a social network earns 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 powers the new creator economy, where creators don’t transfer ownership of their content to the platform they use to make it public. Ownership is embedded in the content itself.
When they sell their content, the money goes directly to them. If the new owner later sells the NFT, the original creator may even automatically receive royalties. This is guaranteed every time it goes on sale as the creator’s address is part of the token’s metadata – the metadata cannot be modified.
NFT and copy/paste problem
Naysayers often bring up the fact that NFTs are “stupid” along with a picture they took of an NFT artwork. “Look, now I have that 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 real thing is just as valuable as the market for it. The more content is captured on screen, shared, and commonly used, the more value it captures.
Owning real things that have been proven is always more valuable than not.
NFT enhances gaming potential
NFT has seen a lot of interest from game developers. NFTs can provide a record of ownership of in-game items, fueling the in-game economy, and providing many benefits to players.
In a lot of casual games, you can buy items to use in your game. But if the item is an NFT, you can get your money back by selling it when you finish playing 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 on the open market. This creates a more win-win business model where both players and developers earn from the secondary NFT market.
This also means that if a game is no longer maintained by the developers, the items you have collected are still yours.
In the end, the items you grind for in the game can outlast the game itself. Even if a game is no longer maintained, your items will always be 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 representing virtual parcels of land that you can use as you see fit.
NFT makes Ethereum addresses more memorable
The Ethereum Name Service uses NFT to provide your Ethereum address with a more memorable name like mywallet.eth. This means you can ask someone to send you ETH via mywallet.eth instead of 0x123456789 ……
This works in a similar way to website domains making IP addresses easier to remember. And like domains, ENS names have value, 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 may:
Get crypto and other NFTs.
Point to a decentralized site, like ethereum.eth.
Store any arbitrary information, including profile information such as email address and Twitter handle.
NFTs and Items
The encryption of physical items has not yet evolved as their digital counterparts. But there are plenty of projects that explore real estate coding, one-of-a-kind fashion items, and more.
Since an NFT is essentially a deed, you could one day buy a car or house with ETH and get that deed in return as an NFT (in the same transaction). As things become increasingly 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 properties on Ethereum, you can use NFTs as collateral in decentralized loans. This is especially useful if you are not rich in cash or cryptocurrency but possess valuable physical items.
NFT and Defi
Loans backed by NFT
There are DeFi apps that allow you to borrow money using collateral. For example, you collateralize 10 ETH so that you can borrow 5000 DAI (a stable currency). This ensures that the lender will be paid back – if the borrower does not return the DAI, the collateral 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 you bought a rare CryptoPunk NFT of the day – they could have made $1000 at today’s prices. By taking this property as collateral, you can access a loan with the same set of rules. If you do not return the DAI, your CryptoPunk will be sent to the lender as collateral. This could eventually work with anything you recognize as an NFT.
And this is not difficult for Ethereum, as both worlds (NFT and DeFi) share the same infrastructure.
Segmented Ownership
NFT creators can also generate “shares” for their NFTs. This gives investors and fans the opportunity to own a piece of the NFT without having to buy it all. This creates even more opportunities for NFT mints and collectors.
Segmented NFTs can be traded on DEXs like Uniswap, not just NFT markets. That means more buyers and sellers.
The overall price of the NFT can be determined by the price of its fractions.
You have more opportunities to own and profit from the items you care about. It’s hard to be valued when owning an NFT.
This is still experimental, but you can learn more about fractional NFT ownership at the following exchanges:
In theory, this would open up the possibility of doing things like owning a Picasso work. You will become a shareholder of Picasso NFT, which means you will have a say in things like revenue sharing. Chances are that one day owning a fraction of the NFT will put you in a decentralized autonomous organization (DAO) to manage that asset.
These are Ethereum-backed institutions that allow strangers, like global shareholders of an asset, to collaborate securely without necessarily trusting others. That’s because not a single penny can be spent without the group’s approval.
As we mentioned, this is an emerging space. NFTs, DAOs, fractional tokens are all growing at different speeds. But their infrastructure all exist and can work together easily because they all speak the same language: Ethereum. So let’s observe this space.
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Important Note: All content on the website is for informational purposes only and is not investment advice at all. Your money, the decision is yours.