Nfts
Redefining ownership and industrial innovation
Two years ago, non-fungible tokens (NFTs) captivated the world with skyrocketing prices and mainstream attention, but then the market retreated and many declared NFTs “dead” .
They spoke too soon. This technology continues to proliferate globally, reshaping entire industries.
Even though the NFT market reaches sales volumes of nearly 200,000 NFTs worth over $191 million per day, it is easy to view them as toys of internet culture due to projects that make headlines like CryptoPunks And Bored monkeys.
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The NFT industry has spent a tremendous amount of energy and resources to make this possible; create, test and commercialize some of the most revolutionary technologies to date.
Even though some NFT markets are now down over 90%, it is a mistake to write off NFTs so quickly.
NFTs are a How, Not one What
What does it take to trade assets in a digitally native environment? Property rights.
NFTs are simply how We record who has rights to an asset. They can certify ownership and authenticity and have many of the features of blockchains such as interoperability, secure transfer and verification.
The NFT industry has created a revolutionary property rights system that is available 24/7/365 to anyone, anywhere, at a fraction of the cost of traditional systems, and which confers uniqueness to any asset, including digital files.
THE What that are bought, sold or transferred are the rights to an underlying asset linked to the NFT. The assets and rights that can be transferred are virtually unlimited.
NFTs are a global ownership system that is changing what is possible and reshaping existing industries.
Digital Art and Collectibles: NFTs offer artists and intellectual property owners a way to create a unique or distinct digital object in a verifiable way, opening new avenues for monetization. The owner of an NFT receives rights that may include ownership, use, and resale of the digital work.
For example, NBA overhead shot has created a hugely successful marketplace where fans can buy, sell and trade officially licensed NBA video highlights, enabled by NFTs that verify ownership and uniqueness.
Stocks and bonds: The financial world is also adopting tokenization. NFTs provide more efficient and accessible markets for traditional financial instruments with transparent ownership and instant settlement.
Carbon credits: NFTs representing a specific amount of carbon dioxide emissions offset can be easily traced from creation to retirement, ensuring the authenticity of carbon credits and helping to combat climate change while meeting regulatory standards.
NFT technology is also revolutionizing music, video, ticketing, gaming, trade finance, luxury goods, identity, private credit, AI, physical goods and even vehicle registries.
NFTs redefine what is possible through verifiable global ownership and authenticity. In the early days of the Internet, we had no idea how accessible and affordable communication would transform the world, and it has had a profound impact on every industry.
NFTs are reshaping the world with the same transformative power, creating unprecedented innovation and economic possibilities.
Note: The opinions expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.