Non-fungible
tokens (NFTs) are cryptographic assets on a blockchain with unique
identification codes and metadata that distinguish them from each other. Unlike
cryptocurrencies, they cannot be traded or exchanged for an equivalent. This
differs from fungible tokens like cryptocurrencies, which are identical to each
other and, therefore, can serve as a medium for commercial transactions
Sharing
a quick overview of the global NFT landscape, its applications, and the future
it holds.
NFT
business models fall into two categories: Primary marketplace and secondary
marketplace. Primary marketplaces sell only curated NFTs from brands that are
bought by buyers and can be sold again on secondary marketplaces. Secondary
marketplaces enable the creation, sale, and resale of NFTs of all types. Here
individuals can create their own NFTs. DeFi for NFTs involves developing
finance offerings for buyers and lending against an NFT which is provided as
collateral.
People
mostly associate NFTs with digital art and collectibles, however, NFTs are much
more than that, and there is a lot more to discover. As per a PGA Labs study,
traditional industries such as real estate and supply chains can benefit from
the authenticity an NFT provides. International brands especially in the US are
already experimenting with it. Other emerging applications for NFTs include
spaces like patents, healthcare, fashion, sports, and ticketing &
memberships.
As
the NFT market matures, platforms will slowly move towards interoperability
making trading of these tokens feasible. Industries beyond arts and
collectibles are taking an interest in NFTs with traditional industries
experimenting with the space.
According
to the report, titled ‘A World of NFT Adoption’, 11 NFT companies are
headquartered in India, just behind the US and Singapore. There is a lot of
interest in NFTs across the nation. Many NFT marketplaces have signed on
well-known figures like Mr. Amitabh Bachchan, Mr. Salman Khan, and Mr. AR
Rahman to attract public interest.
The
NFT space seems exciting but demands large-scale education from the public.
Apart from minting, collaborating, and marketing now all companies and issuers
need to focus on educating and empowering the users to build a new community on
their own.