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NFTS are closed-related to the METAVERSE

NFTS are closed-related to the METAVERSE

A non-fungible token or NFT is a special type of cryptographic token that represents something unique. Non-fungible tokens are therefore not mutually exchangeable. This is in contrast to cryptocurrencies such as Bitcoin or BTC, and many other network or utility tokens that are fungible in nature. The four main characteristics of NFTs are that they are unique, indivisible, transferable and capable of proving their scarcity.

To understand it easily, a digital work of art is unique, but until now it was very easy to copy and violate copyright and even question its original authorship. Well, now you can associate an NFT contract with it that is registered in the Blockchain or Cryptographic Block Chain, so it becomes unique, registered and protected. Any copy that is made will not carry the original NFT, therefore, it will no longer be the same work, it will simply be clear that it is a vulgar copy with no value.

Cryptocurrencies like Bitcoin are also protected by the Blockchain, but the difference is that there are many, although they cannot be copied, but the Bitcoin that you have is identical to the one that I have, in addition to being divisible into portions. As I said, Non-fungibility makes the work of art unique and non-divisible, since it would not make sense, in this way it becomes a high-value asset when we associate an NFT contract with it on the Blockchain.

Non-fungible tokens are used to create verifiable digital scarcity, as well as provide digital ownership, and the ability to interoperate assets across multiple platforms. NFTs are used in a number of specific applications that require unique digital items, such as crypto art, digital collectibles, and online gaming.

Art is an area of ​​early use for NFTs and blockchain in general, due to their ability to provide proof of authenticity and ownership of digital or reproducible artwork, which would otherwise have to deal with the possibility of reproduction. mass and unauthorized distribution through the internet. Platforms such as Superrare or Nifty Gateway that use the Ethereum block chain have specialized in the commercial transactions of digital art, through sale, resale and auction.

NFTs can be used to represent assets in Video Games, such as digital parcels of land, that are controlled by the user rather than the game developer. NFTs allow assets to be traded on third-party marketplaces without the permission of the game developer. In October 2021, developer Valve banned apps that use blockchain technology or NFTs to exchange value or game artifacts from its Steam platform.

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In Virtual Worlds and the Metaverse, some private online communities have formed around confirmed ownership of certain versions of NFTs. Metaverses like Decentraland, Sandbox, and Somnium Space allow users to create galleries to display NFT art and NFT game items. NFTs have been used to auction off virtual land within games. Like the case in June 2021, where a parcel of virtual land about 16 acres in Decentreland sold for $913,228, almost a million USD.In Music Blockchain and the technology that enables the network have given musicians the opportunity to publish their work as non-fungible tokens. As their popularity grew in 2021, NFTs were used by artists and musicians to recover lost revenue due to the 2020 COVID-19 pandemic. As of February 2021, NFTs generated around $25 million within the music industry. On February 28, 2021, electronic dance musician 3LAU sold a collection of 33 NFTs for a total of $11.7 million to commemorate the three-year anniversary of his Ultraviolet album.

The future of NFTs holds many opportunities that could be exploited by a multiplicity of industries. One of the most interesting views is the one that relates NFTs to DeFi, or decentralized finance. DeFi allows you to borrow money using collateral instead of cryptocurrencies, NFTs could act as collateral. And considering that both DeFi and NFTs have a common infrastructure on Ethereum, it could make the process easier.

We are only at the beginning and the idea of ​​NFT can be applied to other assets, such as social networks, where you upload your photos, your videos and in the future you can convert them into NFTs. This is how the CEO of Twitter managed to sell his first tweet for 2.9 million dollars. Apparently, we have a rather unknown, but exciting future ahead of us when it comes to possible uses for NFTs. What is clear to me is that this is a train that we cannot miss.