NFTs will change the way we think about blockchain assets and be a disruptive technology in the world of art.
NFTs are built on top of blockchain technology, which is decentralized, immutable, and transparent. These properties mean that NFTs have more benefits than traditional crypto collectibles.
1) Authenticity & Provenance
The internet makes it easy for people to create and distribute forgeries, but blockchain would make it much harder.
The value of art can be determined by its authenticity and provenance (history). If the owner is known, NFTs may include certificates or other cryptographic proofs of ownership. This means that art can be proved authentic in ways never before possible.
2) Property rights
NFTs can make it easier to deal with intellectual property and establish clear rules for the exchange of digital assets. Once the authentication is complete, NFTs may include a representation of the deed on the blockchain. Therefore, they will help create software licenses that automatically grant users access to work once payment has been made.
NFTs can be used to create unique digital assets that are linked to a user’s personality. They will allow artists and others to produce limited edition artworks where the blockchain guarantees scarcity. This may even lead some people to sell NFT copies of their physical artwork as crypto-collectibles become more popular.
4) Digital scarcity
NFTs will allow the creation of digital items linked to their exact number in the market. Blockchain solutions will enable artists, game designers, and other content creators to produce limited editions of their digital goods, linking them to a specific token on the blockchain. This allows NFTs to be rare collectibles with values that may appreciate over time.
5) Blockchain notarisation
NFTs can manage ownership and provenance of objects in the physical world by representing real-world assets as tokens on a blockchain. This allows NFTs to be linked to material things, which will make it possible for them to act as a notary of authenticity.