What will be the impact of NFTs on various sectors?
By Jamie Green – Crypto Specialist
Non-Fungible Tokens are simply a different class of digital asset, yet its impact on the application infrastructure will be vast. NFTs have already stormed the cryptographic world. Several ICOs have already considered, or plan to use, NFTs to supplement their exchangeable ERC20 tokens.
NFTs are not meant to replace fungible Cryptocurrencies such as Bitcoin or Ethereum in which users will still need to buy cryptocurrency classed as a fungible token to make transactions. Buying crypto will still be essential as these will have a value that can be exchanged. The real change is that physical assets will be the driving force of the NFT. They will be what represents the special identity for the blockchain as there is no point in creating a token that shows ownership for nothing except the token.
Where is this headed?
As the usability improves, the idea of an act on real estate could become outdated. The act will be the NFT. The NFT and smart contract platform will perform most of the processes needed for the exchange of real estate. As this is a blockchain platform, users could buy crypto on a variety of chains to exchange for the NFT, provided that the system supports them.
Of course, the loss of private keys to access this NFT is a problem. As a result, workarounds still need to be found, but the possibility of introducing offline verification in the blockchain field offers endless possibilities. For example, the sale of vehicles via NFT, real estate, art objects (paintings, photographs, music), etc.
In terms of financing, there is a nascent but expanding field of activity around NFTs. NFTs are very useful when it comes to fundraising. There is also talk of Initial Borrowing Initiatives (IDOs), where projects can undertake crowdfunding through single loan agreements represented by NFTs. Each layer of debt or each capital of a stack can be better traded and registered with the NFTs.
If you’re getting ready for the next wave of NFT’s, head on over to our platform to buy Ethereum. You can also buy Bitcoin UK from your trusted Bitcoin broker.