How to use Non Fungible Tokens for business

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Photo by TheDigitalArtist on Pixabay

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The world of digital goods is exploding. From video games to art, hotels, and even real estate; the secondary market for digital items is growing rapidly. The problem is that current solutions are not scalable or trustless. Non-Fungible Tokens (NFTs) solve this problem by being unique tokens on the blockchain with their own properties and attributes. NFTs have many applications in existing real-world businesses as well as new decentralized business models. This article will explain what non-fungible tokens are and how they are different from other types of tokens such as Utility Tokens, Security Tokens, and Tokenized Securities.

What is a Non-Fungible Token?

A Non-Fungible Token or NFT is a special type of ERC-721 token. NFTs are unique tokens that have their own properties and attributes. Most tokens are fungible, meaning they are interchangeable and can be substituted for one another. For example, if you buy 1 token of any token type, you can expect it to be the same as any other token of that type. This is different from non-f.u.ngible tokens where every token is unique. This means that each token has its own properties and attributes and cannot be substituted for any other token. NFTs have many applications within the real-world economy. This means that digital services can tokenize their assets with NFTs. This will make digital items that are currently difficult to trade more liquid and tradable.

Why are NFTs important?

Digital items have been around for a long time, but most have not been able to be traded on secondary markets. This is because most digital items are fungible. In other words, they can be substituted for one another. This makes it difficult to determine the fair market value of any given digital item. It also makes it difficult to trade these items on a secondary market. NFTs make it possible to trade non-fungible items on a secondary market. This is a very important development that will make it much easier to trade digital items.

Current Problems with Digital Goods

Many digital goods like in-game items, virtual assets, and CryptoKitties have not been able to be traded on secondary markets. This is because most digital items are fungible. In other words, they can be substituted for one another. This makes it difficult to determine the fair market value of any given digital item. It also makes it difficult to trade these items on a secondary market. The lack of a trustworthy and scalable solution has also prevented many digital goods from being tokenized. This means that blockchain entrepreneurs have been unable to tokenize and digitize real-world assets that are difficult to trade. This is important because many of these assets are the backbone of our economy. Assets like real estate, gold, company shares, and stocks are all traded as paper assets. These paper assets are extremely difficult to trade across borders and there is a lot of room for manipulation and fraud.

How are NFTs Solving These Problems?

The world of digital goods is exploding. From video games to art, hotels, and even real estate; the secondary market for digital items is growing rapidly. The problem is that the current solutions are not scalable or trustless. Traditional centralized platforms are not scalable and they rely on a third party to guarantee the trade. They also take large fees to make the trade happen. This is where NFTs come in. NFTs are a standard and are trustless, so they do not rely on a centralized third party to guarantee the trade. NFTs are also scalable, so they can be used by millions of people with ease. NFTs solve the problems of scalability and trustless trade for digital assets.

Top 3 use cases for Non Fungible Tokens

E Sports - Like many industries, e sports is currently experiencing exponential growth. It is projected that e sports will have almost as many viewers as the NFL by 2021. There is also a lot of money in e sports; in 2018, the industry generated $1.8 billion in revenue. It is projected that this number will grow to $6 billion by 2022. As the e sports industry grows, fans will spend money on in-game items. These items can be sold or traded at any time. Currently, there is no trustless way to exchange these items. NFTs make it easy to tokenize in-game items. This means that e sports fans can tokenize and digitize their assets. This makes it easier to trade and exchange these items with other fans. Art - Art is one of the most valuable assets in the world. Art is also difficult to trade and exchange due to its sensitive nature. NFTs make it easy to tokenize art and make it more liquid. This means that art collectors can now use their digital assets to buy other digital items. Art has always been difficult to trade, especially internationally. This is because many art collectors are worried about theft and fraud. NFTs make it easy to digitize art without worrying about fraud or theft. This means that art collectors can now exchange their digital art with ease. Immersive Technologies - Immersive technologies are growing at an exponential rate. This means that there are many industries that can be tokenized and digitized with NFTs. Industries like real estate, airlines, hotels, and corporate governance can all be digitized and tokenized with NFTs. This means that these industries can be traded with ease and without having to deal with paper assets. This makes it easier to trade large amounts of assets across borders.

Conclusion

The world of digital goods is exploding. From video games to art, hotels, and even real estate; the secondary market for digital items is growing rapidly. The problem is that current solutions are not scalable or trustless. Non-Fungible Tokens (NFTs) solve this problem by being unique tokens on the blockchain with their own properties and attributes. NFTs have many applications in existing real-world businesses as well as new decentralized business models. This article will explain what non-fungible tokens are and how they are different from other types of tokens such as Utility Tokens, Security Tokens, and Tokenized Securities.

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