NFTs have become a buzz word, quite popular and known to pull huge transactions every now and then – but many people still have no idea what an NFT is. So here is what we’ll do: we’ll leave out the definition and talk about it’s potential real-world application and what it could become in future.
Lets start with art.
Weird as it may sound, every image file on the internet is available to everyone for free. The power of right click -> save as and you can have the exact image in your phone or laptop – free. The original art may cost ten million dollars but hey, you just downloaded it for free – in high quality too. If it pleases you, you can even print it, frame it and hang it on a wall.
But therein lies the issue – the internet allows for multiplication of art/items way too easily and this makes these items lose value faster than you can get water out a leaking basket.
To solve the problem, we need a way to make a file/image/anything exclusive…a way to make it unique and not get duplicated by anyone who wills. NFTs are on a simple mission – to ensure that if you are the owner an an art, then you alone actually own it even though 100 million people can download that art. The thing is that even though your art might get copied, it’s value starts to increase as it gains more popularity – the more it gets popular, the better for you – and this is because you are the original owner and now you can prove that every other version of it is just a copy. You alone hold the original.
So NFTs are digital codes, which cannot be altered and can verify that a particular asset is original and owned by you. Think of it like proof of ownership certificate for your car – only this time, this proof is hosted on a blockchain so everyone can see it and everyone agrees with you. Got that?
Now everything else
Imagine you graduated from the prestigious Harvard and you went for a job interview, if your interviewer wanted to verify you actually graduated from Harvard, he’d have to call the school/go there/send an email/place a call or do one of the many things possible to get the school to confirm your name is in their records and you in fact, graduated as claimed. Then again, imagine you want to sell a land and the potential wants to verify if you truly own the land you are trying to sell – he’ll probably go to the local registry or sort through the proper list…you know the drill.
Now NFTs could potentially solve these and many more. Proof of ownership can be verified easily because it has been entered into the ledger which exists on the blockchain, public enough for everyone to see. With the power of NFTs, ownership of anything can be seen – from music files to videos, art to certificates, articles to tweets…everything.
~NFT will authenticate the world~ “Naval”
The possibilities are endless. Smart contracts, DAOs, NFTs are just an implementation of what blockchain technology enables and we are excited about the future and the immense possibilities this could unlock.
If you are new to NFTs and looking for an NFT that is really worth it, one that return value to you, check out our post on how High Network Individuals pick their NFTs by clicking here.